austlii:cth/ARTA/2026/69
General information, not legal advice.
ARTA
2026-01-22
Original judgment source is linked above.
China Minsheng Banking Corp. Ltd. Hong Kong Branch and Registrar of Personal Property Securities (Practice and procedure) [2026] ARTA 69 (22 January 2026)
Applicant: China Minsheng Banking Corp. Ltd, Hong Kong Branch
Respondent: Registrar of Personal Property Securities
Applicant: China Minsheng Banking Corp. Ltd, Hong Kong Branch
Respondent: Registrar of Personal Property Securities
Applicant: China Minsheng Banking Corp. Ltd, Hong Kong Branch
Respondent: Registrar of Personal Property Securities
Decision: 1. By consent, the Tribunal dispenses with a hearing of the application for Sin Tang Mining Pty Ltd to be made a party in each of proceedings 2024/10564, 2024/10566 and 2024/10567**.**
2. The application for Sin Tang Mining Pty Ltd to be made a party in each of proceedings 2024/10564, 2024/10566 and 2024/10567 is refused.
...........................[SGD].............................................
ADMINISTRATIVE LAW - s 22(1) Administrative Review Tribunal Act 2024 (Cth) - application to join a party - criteria for joinder - whether joinder is appropriate - relevant considerations
Re Marine World Victoria Ltd and Minister for Arts, Heritage and Environment [1986] AATA 203; (1986) 10 ALD 262
(a) Proceedings 2024/10564 (proceeding 564) - Kimberley Metals Group Pty Ltd (Metals), security registration number ending 3783, originally registered 3 February 2015 (registration 3783).; > > (b) Proceedings 2024/10566 (proceedings 566) - Kimberley Metals Group Pty Ltd, security registration number ending 5926, originally registered 28 January 2015 (registration 5926); and > > (c) Proceedings 2024/10567 (proceedings 567) - KMG Resources Pty Ltd (KMG), security registration number ending 1403, originally registered 4 February 2015 (registration 1403). > > (collectively the "Other Parties" and the "Registrations")
(d) 31 December 2014 (2014 Deed); > > (e) 28 December 2017 (2017 Deed); and > > (f) 21 March 2018 (2018 Letter). > > (Collectively facility agreement)
(a) Metals provided the following securities in favour of the applicant in support of the Borrowers' obligations under the facility agreement: > > > (i) a mining mortgage dated 20 January 2015[1] (Metals Mortgage); and > > > > (ii) a general security deed dated 2 February 2015[2] (Metals GSD), > > > > and > > (b) KMG provided the following securities in favour of the applicant to support of the Borrowers' obligations under the facility agreement: > > > (i) a guarantee and indemnity dated 20 January 2015[3] (KMG Guarantee); and > > > > (ii) a general security deed dated 2 February 2015[4] (KMG GSD). > > > > (Collectively the Other Parties Securities)
(c) the security interest provided by the Metals Mortgage, the Metals GSD and the KMG GSD was perfected by registration on the Register; > > (d) each of the Other Parties issued an amendment demand in respect of each of the Registrations seeking the removal of each of the Registrations; > > (e) the Registrar issued a notice under s 180 of the PPSA (amendment notice) in respect of each of the Registrations inviting the applicant to provide a response to the amendment demand; > > (f) the applicant did not reply to any of the amendment notices; > > (g) in respect of each of the Registrations, decisions were made to remove them from the register as follows: > > > (i) registration 3783 on 31 August 2024 (3783 decision); > > > > (ii) registration 5926 on 10 September 2024 (5926 decision); and > > > > (iii) registration 1403 on 31 August 2024 (1403 decision). > > (Collectively the removal decisions)
21. In making my decision as a delegate of the Registrar as to whether or not to register a financing change statement, I was compelled to consider any response from the Secured Party to the amendment notice and any other relevant information (per subsection 181(4)). In this regard I note that: > > a. On 24 June 2024, the Deputy Registrar sent the Secured Party an amendment notice (Amendment Notice) with respect to the Registration to the Secured Party's address for service, inviting the Secured Party to amend the Registration or to respond in writing before 1 July 2024 if the Secured Party asserted the Amendment Demand was not authorised; and > > b. no response to the Amendment Notice was received from the Secured Party. > > 22. At the time the decision was made, no evidence of a consensual security agreement granting a security interest in the collateral had been provided. > > 23. Under s 181(4)(a) of the PPSA, the Registrar is empowered to make a decision where no response has been received from the Secured Party. There is no obligation to follow up with secured parties if no response to the Amendment Notice has been received. > > 24. For the reasons above, I did not suspect on reasonable grounds that the amendment demanded by the Applicant was not authorised under section 178 of the PPSA because no collateral described in the Registration secures any obligation owed by a debtor to the secured party. Therefore, pursuant to section 181 of the PPSA, I made the decision to register a financing change statement amending the Registration in accordance with the Amendment Demand.
(h) STM submissions - undated prepared by Mr McDonald and TE Ledger (STM submissions); > > (i) Affidavit of Mr Chi sworn 24 October 2025 (Chi affidavit); > > (j) Registrar's submissions dated 28 October 2025 (Registrar's submissions); > > (k) Applicant's submissions- undated prepared by Mr Tomasi of Counsel (applicant's submissions); > > (l) Affidavit of Ms McCracken, solicitor for the applicant, affirmed 16 October 2025 (McCracken affidavit); and > > (m) STM reply submissions - undated prepared by Mr McDonald and TE Ledger (STM reply submissions).
We request that Sin-Tang Mining Pty Ltd (Sin-Tang), as holder of securities over the assets owned by the Other Parties, be joined as a party to the Proceedings by reason of the following matters:
a) the Other Parties have each granted Sin-Tang interest in collateral which are the subject of ALLPAP registrations on the PPSR in respect of each of the Other Parties;
b) if the Tribunal were to reinstate the Applicant's ALLPAP registrations the subject of each the Proceedings (sic), Sin-Tang will lose its priority in respect of its registrations in relation to each of the Other Parties; and
c) on those bases, Sin-Tang's interest will be affected by the Tribunal's disposal of each of the Proceedings and should be afforded an opportunity to be heard.
(a) leave to join these proceedings for the limited purpose of making written submissions (and oral submissions if the Tribunal considers it appropriate) regarding the legal effect of the Applicant's 4 December 2024 re-registration, the application of s 167 and the priority consequences under ss 21 and 55 of the PSSA; > > (b) Sin Tang's written submissions are to be filed and served within the timetable directed by the Tribunal; and > > (c) there be liberty to apply.
(a) Mr Chi had previously understood that the central issues in the Proceedings were: > > > (i) whether the applicant should have its security registered on the PPSR, given the ongoing status of proceedings in Hong Kong between the Borrowers and the applicant; and > > > > (ii) the applicant had framed the issue in these Proceedings as being whether there are reasonable grounds to suspect the amendment sought by Metals and KMG, and subsequently made by the Respondent, was not authorised; > > (b) the issue of priority "had not been directly stated in any material filed by the applicant's solicitors" nor did Mr Chi "receive any notice from the respondent that the interest of [STM] might be adversely affected by the outcome of these proceedings". Here, Mr Chi said "this seemed unfair"; > > (c) accordingly, prior to discussions with his solicitors in early October 2025, Mr Chi had not turned his mind to the possibility that STM's security interest could be affected. Mr Chi says this "then prompted my solicitors to include a short section regarding this potential issue in the Metals and KMG's [Statement of Facts, Issues and Contentions (SFICS)] filed in the Proceedings". > > (d) Mr Chi sought further assurances from his solicitors that there was no possibility STM would lose its priority position and that STM's interests "would be fully considered by the Tribunal".
As English is not my first language, complex legal issues are somewhat difficult for me to understand. I am reliant on advice from my solicitors.
10. As noted at paragraph 29 of the Other Party's SIFC, the central issue for determination by the Tribunal is whether there exist "reasonable grounds" (as articulated by the High Court in George v Rockett [1990] HCA 26; (1990) 170 CLR 104) to suspect that the amendments sought by Metals and KMG in relation to the Metals and KMG Registrations, and the amendments subsequently made by the Respondent, were not authorised under s 178 of the PPSA. Resolution of this issue requires the Tribunal to consider, pursuant to s 150(1)(a) of the PPSA, whether the Applicant holds a "security interest" (as defined in s 12 of the PPSA) in the collateral described in the Registrations. This includes an assessment of whether the collateral secures an outstanding obligation. > > 11. Sin Tang is neutral as to those legal questions. Sin Tang's interest, however, arises in relation to the potential consequences that might flow from the Tribunal's determination of those issues.
13. Currently, if KMG defaults on its financial obligations, Sin Tang has a legal claim over KMG's assets as collateral. Its registration is perfected under s 21 of the PPSA, giving Sin Tang priority (save for Glencore's interest) over unsecured creditors in the event of KMG's insolvency. > > 14. However, relevantly for Sin Tang's purposes, on 4 December 2024, the Applicant re-registered its "security interest" on the PPSR in relation to Metals and KMG.13 This occurred shortly before 13 December 2024 (the date upon which the Applicant filed these review proceedings) - a detail which is conveniently omitted in the Applicant's SIFCs. > > 15. Although Sin Tang's registration remains effective until 27 June 2031 and it presently enjoys perfected status under s 21 of the PPSA, the amendments and re-registrations now sought by the Applicant in relation to KMG and Metals in these proceedings creates a risk that Sin Tang's perfected interest could be subordinated. Specifically, the Applicant's re-registration on 4 December 2024 purports to revive or extend an earlier security interest that may have previously lapsed or been amended. Were the Tribunal to find that such re-registration operates with retrospective effect (for example, by treating the Applicant's interest as having remained continuously perfected within the meaning of s 167 of the PPSA) then the Applicant's interest would take priority over Sin Tang's later-perfected interest.
... if the Tribunal accepts the Applicant's contention that its amendments were properly authorised, the PPSR records could be altered in a way that changes the effective registration history of the relevant collateral. Any such alteration would adversely affect Sin Tang's position as a secured party, potentially reducing or extinguishing its priority in enforcement or an insolvency event involving KMG.
(a) granting leave would occasion minimal prejudice to the existing parties; > > (b) the evidence of Mr Chi reasonably explains the delay in bringing the application; > > (c) until October 2025 Mr Chi did not consider the applicant's proceedings could result in the applicant regaining priority over the STM security interest; > > (d) as a model litigant, the Registrar has an obligation to use its best endeavours to assist the Tribunal in making the correct or preferable decision. Arguably, STM submits, this obligation "extended to ensuring [STM] was advised that its interest may be affected upon the applicant commencing these proceedings". STM continues that the issue was not raised in the Registrar's SFICS and that it is unclear whether the Registrar had turned its mind to the possibility; > > (e) as a matter of natural justice, STM should have at least been notified that its interest might be adversely affected by the outcome of these proceedings. No such notification was ever received; > > (f) English is Mr Chi's second language. Therefore, it is unsurprising he did not understand the effect of the PPSA. In this regard "he has not been provided with substantive legal advice in respect of the issues potentially affecting [STM] in these proceedings" and his lawyers Pragma Lawyers should be afforded an opportunity to do so; > > (g) if leave is granted STM does not intend to file further evidence or cause any adjournment. Rather, STM would wish to make submissions to the following effect: > > > (i) the applicant's reregistration on 4 December 2024 cannot revive or extend any prior security interest for the purpose of priority. This is because the reregistration occurred after an earlier registration may have lapsed and there is no evidence of continuous perfection under s 167 of the PPSA; > > > > (ii) to allow the applicant to claim priority based on the 4 December 2024 registration would appear to subvert the statutory scheme governing the order of perfection and undermine the certainty provided by the PPS framework to secured parties; and the applicant should not be permitted, as a result of its own administrative oversight, to regain its priority over third parties.
(a) the interests of STM are not relevant to a determination under s 181 of the PPSA. In this regard there is no discretion, the decision being "binary, based on the nature of the arrangements between the dental and the secured party". Here, the respondent highlights the fact the process is administrative in nature; > > (b) the application was made late. The Tribunal should consider the adequacy of the explanation having regard to Mr Chi holding positions in both the Other Parties and STM and by reason of the fact that the issue concerning regaining priority against third parties was raised in the Other Parties SFICS dated 8 August 2025; > > (c) STM is an outsider to the legal arrangements. In any event any assistance he could provide could equally be provided by the existing parties. Further they are essentially of the same substance as those contained in the Other Parties SFICS; and > > (d) the joinder would result in delay.
4. In other words, at the time of registering its interest on 27 June 2024, Mr Chi, by his directorship of Metals and KMG, knew:
(a) Metals had issued an Amendment Demand to remove the Applicant's registration from the PPSR;
(b) KMG had lodged an Amendment Statement and notified the Respondent of the basis for that amendment;
(c) the Respondent had warned the Applicant that, absent a response, its PPSR registration would be removed; and
(d) the financial accommodation provided by Sin-Tang had already been advanced in reliance upon the position that the Applicant's interest was defective and would likely be removed.
5. Accordingly, the Applicant's contention that the registration remained effective at the time of Sin Tang's registration omits the critical facts that:
(a) the statutory amendment and objection process had, at that stage, been properly engaged;
(b) the Applicant had been placed on notice of the consequences of non-response and elected not to act; and
(c) Sin Tang, through its common directing mind with KMG, proceeded on the reasonable understanding that the removal of the Applicant's interest was imminent and, presumably, inevitable.
8. More fundamentally, the Tribunal's discretion on a joinder application is to be "exercised rationally with regard paid to all of the circumstances of the proceeding and the nature of the interest of each of the persons applicating to be made a party". It must surely be relevant to the Tribunal's discretion that the very reason this proceeding was commenced is because of the Applicant's own delay, and the fact the Applicant did not become aware of the removal of its registration until 18 October 2024, some 5 months after Metals first emailed the Applicant with the Amendment Demand.
22 Parties to proceeding for review > > Parties to proceeding > > (1) Each of the following are parties to a proceeding for review by the Tribunal of a decision: > > ... > > (c) any other person, if: > > (i) the person applies to the Tribunal to become a party to the proceeding; and > > (ii) the Tribunal is satisfied that the person's interests are affected by the decision; and > > > (iii) the Tribunal considers it appropriate that the person become a party to the proceeding.
(a) By consent, the Tribunal dispenses with a hearing of the application for Sin Tang Mining Pty Ltd to be made a party in each of proceedings 2024/10564, 2024/10566 and 2024/10567. > > (b) The application for Sin Tang Mining Pty Ltd to be made a party in each of proceedings 2024/10564, 2024/10566 and 2024/10567 is refused.
[9] STM submissions at [20] and following.
[10] STM reply submissions at [4]-[5].
[11] [1986] AATA 203; (1986) 10 ALD 262 at 271.
(1990) 170 CLR 104