The Supreme Court of New South Wales has ruled that a secured creditor is not entitled to appoint an administrator (under section 436C of the Corporations Act 2001 (Cth.)) unless mortgage duty has been paid on the security instrument:

• Photios v Cussen and Senatore (in their capacity as joint administrators of Beechworth Land Estates Pty Ltd (administrators appointed) [2015] NSWSC 336

The decision only affects security interests granted in New South Wales, where section 211 of the Duties Act 1997 (NSW) provides that the security is unenforceable unless and until mortgage duty has been paid.

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