Shao v. Crown Global Capital Pty Ltd (in prov liq) ACN 604 292 140 & Anor

Lower Court Judgment

19/12/2024 Supreme Court of New South Wales (Court of Appeal) (Leeming, Payne and Adamson JJA)

[2024] NSWCA 302

Contracts – Where Facility Agreement required two lenders nominate a bank account into which proceeds could be paid – Where only one lender nominated an account – Where proceeds of facility paid into nominated account in breach of requirements of agreement such that borrower did not obtain good discharge of its debt – Where proceedings as between the two lenders were litigated – Whether those proceedings amounted to ratification of rogue lender’s nomination such that the borrower obtained good discharge of its debt – Whether right of action now lies against borrower – Where debtor repays a debt in breach of contract by, for example, repaying it into the wrong bank account (or otherwise contrary to the contractual instructions of the creditor) – Whether the creditor can accept repayment of the debt but sue the debtor for damages arising from the breach of contract.