The Court granted an interim injunction restraining the trustee of a unit trust (Onkar) and its directors from completing the sale of trust assets (units and shares in a development trust) to a third-party purchaser, where a 50% beneficiary of the selling trust (DK OGP) established a prima facie case that the sale constituted a breach of trust — specifically, that the trustee entered into the sale without informing or consulting the beneficiary, waived pre-emptive rights attached to trust property, and committed sale proceeds to discharge personal debts of the trustee's directors owed to strangers to the trust. The Court applied Fitzwood Pty Ltd v Unique Goal Pty Ltd, holding that in the exclusive equitable jurisdiction to restrain breach of trust, there is no requirement to demonstrate inadequacy of damages, and the balance of convenience favoured preserving the status quo where the entire undertaking of the trust would be liquidated if the sale completed. The Court left open for trial the proper construction of the trust deed's broad trustee powers against the clause vesting unitholders with an indefeasible interest in trust capital, and the question of whether the sale agreement's interdependent completion obligations could be severed.
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