Australia, May 25 -- New South Wales Land and Environment Court issued text of the following judgement on April 24:

1. On 19 March 2025, I dismissed two motions filed by GMDA Pty Ltd as trustee for the GMD Family Trust (the plaintiff) after undertakings were given by the plaintiff and the first and second defendants, Abboud Joseph Baladi and Nour-Marie Baladi (the first and second defendants).

2. The first motion (the Auction Injunction Motion) was filed on 6 March 2025 and sought principally to restrain the third and fourth defendants (receivers) from selling the property known as 5 - 7 Church Street, Terrigal, NSW, 2260 (the Property). The plaintiff in this motion also sought a declaration that the plaintiff validly elected to terminate the Heads of Agreement (HOA) dated 21 June 2024 between the plaintiff and first and second defendants; an order that the third and fourth defendants' appointment as receivers and managers be terminated; and declarations concerning the true construction of the HOA.

3. The second motion (the Mortgagee Injunction Motion) was filed ex parte on 7 March 2025 and sought to restrain the first and second defendants from exercising any rights pursuant to various instruments between the plaintiff and National Australia Bank (NAB) in circumstances where the first and second defendants had paid out the NAB and taken an assignment of the NAB rights.

4. The orders made on 19 March 2025 followed a hearing on 13 March 2025 during which various undertakings were proffered and I indicated I was not minded to grant any interlocutory relief. I requested the parties to agree orders recording the undertakings and the dismissal of both motions. The undertakings proffered are in the following terms:

1 The First and Second Defendants undertake that they will not, without giving seven days' notice in writing to the other parties to the proceedings, exercise any rights pursuant to the following instruments (including, without limitation, seeking to appoint any external administrator to the Plaintiff or listing for sale or entering into any contract for sale in relation to the property knowns as 5 - 7 Church Street, Terrigal NSW 2260, being the property shown in Folio Identifiers 19/7861 and 20/7861 (Property)):

a. the facility agreement(s) entered into between the Plaintiff and the First and Second Defendants and the National Australia Bank (NAB) on or about 8 January 2021 (the Facilities);

b. the guarantee and indemnity in the amount of $9,850,000.00 granted by George Daaboul (of the Plaintiff) in respect of the Facilities;

c. the General Security Agreement between the NAB and the Plaintiff dated 19 January 2021; and

d. the first registered mortgage over the Property with registered dealing AQ885985 dated 19 January 2021.

2 The First and Second Defendants undertake that they will not, without giving seven days' notice in writing to the other parties to the proceedings, take any step to invoke:

a. clause 48 - "Vendor may delay Completion or termination contract"; or

b. clause 49 - "Alternative transfer"

of any contract for the sale of the Property.

3 The Plaintiff undertakes that it will not, without giving seven days' notice in writing to the other parties to the proceedings, take any step to invoke clause 48 - "Vendor may delay Completion or termination contract" of any contract for the sale of the Property.

5. All that remains to be determined is the costs of the two motions, which was determined on the papers. The parties provided written submissions on 28 March 2025, 3 April 2025, 4 April 2025 and 9 April 2025.

*Rest of the document can be viewed at: (https://www.caselaw.nsw.gov.au/decision/196657a3bb92eb2541a1cf72)

Disclaimer: Curated by HT Syndication.