PRACTICE AND PROCEDURE — Enforcement of judgments and orders — Where judgment entered in earlier proceedings in the Court in favour of first plaintiff and against parties including the first and second defendants in the present proceedings — Where charging order made in the earlier proceedings over units held by the first and second defendants in a unit trust by way of enforcement of the judgment debt — Where first plaintiff now seeks order for judicial sale of those units — Held: Orders made for judicial sale of the units at a price determined by reference to an expert valuation of the units and by a process compliant with the pre-emptive rights granted to unit holders under the trust deed.
Quick Take
1A charging order under s 126(5) of the Civil Procedure Act 2005 (NSW) entitles the judgment creditor to the same relief as if the judgment debtor had granted a consensual charge, including an order for judicial sale.
2Where units in an unlisted, closely held unit trust are subject to pre-emptive rights under the trust deed and there is no ready external market, the court may order judicial sale by private treaty at a price determined by expert valuation rather than by public auction, provided the sale process complies with the trust deed's transfer provisions.
3In ordering judicial sale, the court must be satisfied that the terms of the order are designed to achieve the best price for the charged property.
