This application concerned a dispute over a loan agreement and a supplementary security agreement involving pledged shares.
The applicants sought a declaration that the transfer of pledged shares to the respondents was null and void, or alternatively, relief under the Personal Property Security Act (PPSA) or equitable relief from forfeiture.
The court found that the applicants had defaulted on the loan agreement, and the respondents acted within their contractual rights under the security agreement to transfer the shares upon default, without needing to comply with PPSA notice requirements for disposal.
The court also denied equitable relief from forfeiture due to the applicants' conduct and lack of evidence of ability to pay.
The application was dismissed, and the applicants were ordered to pay substantial indemnity costs.
