Kay’s Leasing Corp Pty Ltd v CSR Provident Fund Nominees Pty Ltd [1962] VR 429

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Facts
  • Kay’s rented equipment to a customer for mining purposes
  • The customer defaulted on their mortgage, which meant their land was repossessed
  • Bank wanted to repossess the equipment as it was fixtures
  • Court said though they did technically own the fixtures, Kay’s had an equitable interest which over-rode it for a limited period of time
Held
  • The items had become fixtures
  • Because it would never be expected land would be sold without fixtures, it was not OK within the mortgage agreement to split them up
  • When something becomes a fixture, it is the property of the property owner. However, a contractual right might obligate this to someone else (e.g. the hirer)
  • HOWEVER Kay’s has an equitable right over the property and can thus get it back until someone else owns the property

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