DC Rd DC Pty Ltd v Zhang

(a) the Trustees be appointed as trustees for the sale of the Belrose Property and are authorised to charge remuneration for their services as Trustees, and those of their partners and staff, at the rates contained in their Consent to Act; > > (b) the Belrose Property immediately vests in the Trustees on the making of these orders to be held on trust for sale, subject to any encumbrances affecting the entirety of the Belrose Property; > > (c) the Trustees are empowered to sell the Belrose Property by auction or by private treaty as the Trustees deem appropriate, and to engage agents, valuers, solicitors and/or conveyancers as they deem appropriate for that purpose, to engage contractors for the purpose of bringing the Belrose Property up to a condition which would facilitate sale, and to borrow money for the purpose of those engagements.

1. The Trustees, on completion of the sale of the Belrose Property, shall distribute the proceeds of sale in the following manner:

(a) in payment of the Trustees' reasonable costs (at their approved rates) and expenses of and incidental to the sale of the Belrose Property, including, but not limited to, legal costs, advertising costs, agent's commission and contractors' costs; > > (b) in payment of all rates, taxes and insurance and other outgoings of the Belrose Property required to be incurred by the Trustees; > > (c) in payment and discharge of all mortgages and other encumbrances registered on title of the Belrose Property including the reasonable costs of discharge of the mortgagee/s, and any reasonable costs of the mortgagee of this proceeding; and > > (d) payment of the balance to the First Applicant (DC Rd DC).

(a) the Trustees be appointed as trustees for the sale of the Turramurra Property and are authorised to charge remuneration for their services as Trustees, and those of their partners and staff, at the rates contained in their Consent to Act; > > (b) the Turramurra Property immediately vests in the Trustees on the making of these orders to be held on trust for sale, subject to any encumbrances affecting the entirety of the Turramurra Property; > > (c) the Trustees are empowered to sell the Turramurra Property by auction or by private treaty as the Trustees deem appropriate, and to engage agents, valuers, solicitors and/or conveyancers as they deem appropriate for that purpose, to engage contractors for the purpose of bringing the Turramurra Property up to a condition which would facilitate sale, and to borrow money for the purpose of those engagements.

1. The Trustees, on completion of the sale of the Turramurra Property, shall distribute the proceeds of sale in the following manner:

(a) in payment of the Trustees' reasonable costs (at their approved rates) and expenses of and incidental to the sale of the Turramurra Property, including, but not limited to, legal costs, advertising costs, agent's commission and contractors' costs; > > (b) in payment of all rates, taxes and insurance and other outgoings of the Turramurra Property required to be incurred by the Trustees; > > (c) in payment and discharge of all mortgages and other encumbrances registered on title of the Turramurra Property including the reasonable costs of discharge of the mortgagee/s, and any reasonable costs of the mortgagee of this proceeding; > > (d) payment to DC Rd DC in the amount of $1,953,053.69 plus post-judgment interest; and > > (e) payment of the balance, if any, to the Eleventh Respondent (Lian Li).

(a) the Trustees be appointed as trustees for the sale of the Herbert Street Property and are authorised to charge remuneration for their services as Trustees, and those of their partners and staff, at the rates contained in their Consent to Act; > > (b) the Herbert Street Property immediately vests in the Trustees on the making of these orders to be held on trust for sale, subject to any encumbrances affecting the entirety of the Herbert Street Property; > > (c) the Trustees are empowered to sell the Herbert Street Property by auction or by private treaty as the Trustees deem appropriate, and to engage agents, valuers, solicitors and/or conveyancers as they deem appropriate for that purpose, to engage contractors for the purpose of bringing the Herbert Street Property up to a condition which would facilitate sale, and to borrow money for the purpose of those engagements.

1. The Trustees, on completion of the sale of the Herbert Street Property, shall distribute the proceeds of sale in the following manner:

(a) in payment of the Trustees' reasonable costs (at their approved rates) and expenses of and incidental to the sale of the Herbert Street Property, including, but not limited to, legal costs, advertising costs, agent's commission and contractors' costs; > > (b) in payment of all rates, taxes and insurance and other outgoings of the Herbert Street Property required to be incurred by the Trustees; > > (c) in payment and discharge of all mortgages and other encumbrances registered on title of the Herbert Street Property including the reasonable costs of discharge of the mortgagee/s, and any reasonable costs of the mortgagee of this proceeding; > > (d) payment to DC Rd DC in the amount of $726,658.64 plus post-judgment interest; and > > (e) payment of the balance, if any, to the Second Respondent (Bob Cai).

(a) the Trustees be appointed as trustees for the sale of the Saiala Property and are authorised to charge remuneration for their services as Trustees, and those of their partners and staff, at the rates contained in their Consent to Act; > > (b) the Saiala Property immediately vests in the Trustees on the making of these orders to be held on trust for sale, subject to any encumbrances affecting the entirety of the Saiala Property; > > (c) the Trustees are empowered to sell the Saiala Property by auction or by private treaty as the Trustees deem appropriate, and to engage agents, valuers, solicitors and/or conveyancers as they deem appropriate for that purpose, to engage contractors for the purpose of bringing the Saiala Property up to a condition which would facilitate sale, and to borrow money for the purpose of those engagements.

1. The Trustees, on completion of the sale of the Saiala Property, shall distribute the proceeds of sale in the following manner:

(a) in payment of the Trustees' reasonable costs (at their approved rates) and expenses of and incidental to the sale of the Saiala Property, including, but not limited to, legal costs, advertising costs, agent's commission and contractors' costs; > > (b) in payment of all rates, taxes and insurance and other outgoings of the Saiala Property required to be incurred by the Trustees; > > (c) in payment and discharge of all mortgages and other encumbrances registered on title of the Saiala Property including the reasonable costs of discharge of the mortgagee/s, and any reasonable costs of the mortgagee of this proceeding; > > (d) payment to DC Rd DC in the amount of $2,349,969.45 plus post-judgment interest; and > > (e) payment of the balance, if any, to the Twelfth Respondent (Saiala Holdings Pty Ltd).

(a) the Trustees be appointed as trustees for the sale of the Clarence 104 Property and are authorised to charge remuneration for their services as Trustees, and those of their partners and staff, at the rates contained in their Consent to Act; > > (b) the Clarence 104 Property immediately vests in the Trustees on the making of these orders to be held on trust for sale, subject to any encumbrances affecting the entirety of the Clarence 104 Property; > > (c) the Trustees are empowered to sell the Clarence 104 Property by auction or by private treaty as the Trustees deem appropriate, and to engage agents, valuers, solicitors and/or conveyancers as they deem appropriate for that purpose, to engage contractors for the purpose of bringing the Clarence 104 Property up to a condition which would facilitate sale, and to borrow money for the purpose of those engagements.

1. The Trustees, on completion of the sale of the Clarence 104 Property, shall distribute the proceeds of sale in the following manner:

(a) in payment of the Trustees' reasonable costs (at their approved rates) and expenses of and incidental to the sale of the Clarence 104 Property, including, but not limited to, legal costs, advertising costs, agent's commission and contractors' costs; > > (b) in payment of all rates, taxes and insurance and other outgoings of the Clarence 104 Property required to be incurred by the Trustees; > > (c) in payment and discharge of all mortgages and other encumbrances registered on title of the Clarence 104 Property including the reasonable costs of discharge of the mortgagee/s, and any reasonable costs of the mortgagee of this proceeding; > > (d) payment to DC Rd DC in the amount of $329,808.58 plus post-judgment interest; and > > (e) payment of the balance, if any, to the Thirteenth Respondent (Clarence 104 Pty Ltd).

(a) the Trustees be appointed as trustees for the sale of the DSZ Clarence Street Properties and are authorised to charge remuneration for their services as Trustees, and those of their partners and staff, at the rates contained in their Consent to Act; > > (b) the DSZ Clarence Street Properties immediately vest in the Trustees on the making of these orders to be held on trust for sale, subject to any encumbrances affecting the entirety of the DSZ Clarence Street Properties; > > (c) the Trustees are empowered to sell the DSZ Clarence Street Properties by auction or by private treaty as the Trustees deem appropriate, and to engage agents, valuers, solicitors and/or conveyancers as they deem appropriate for that purpose, to engage contractors for the purpose of bringing the DSZ Clarence Street Properties up to a condition which would facilitate sale, and to borrow money for the purpose of those engagements.

1. The Trustees, on completion of the sale of the DSZ Clarence Street Properties, shall distribute the proceeds of sale in the following manner:

(a) in payment of the Trustees' reasonable costs (at their approved rates) and expenses of and incidental to the sale of the DSZ Clarence Street Properties, including, but not limited to, legal costs, advertising costs, agent's commission and contractors' costs; > > (b) in payment of all rates, taxes and insurance and other outgoings of the DSZ Clarence Street Properties required to be incurred by the Trustees; > > (c) in payment and discharge of all mortgages and other encumbrances registered on title of the DSZ Clarence Street Properties including the reasonable costs of discharge of the mortgagee/s, and any reasonable costs of the mortgagee of this proceeding; > > (d) in payment to DC Rd DC in the amount of $1,280,604.90 plus post-judgment interest; > > (e) payment of the balance, if any, to the Sixteenth Respondent (DSZ Accountants Pty Ltd).

1. With respect to each of the sales undertaken by the Trustees as permitted by these orders, the Trustees are to, as to each property, and as efficiently as reasonably possible:

(a) inform the mortgagee registered on title of the minimum price at which they propose to sell any property, at least 14 days before entering into a contract for sale; and > > (b) keep the mortgagee registered on title informed with respect to the entry into any contract for sale.

1. The Trustees and the parties have liberty to apply on reasonable notice. 2. Subject to the question of costs of the proceedings, the Fifth Further Amended Originating Application otherwise be dismissed.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Delivered ex tempore, revised from transcript

1. I gave judgment in this matter on 23 January 2026_: DC Road DC Proprietary Limited v Zhang (Trial Judgment)_ [2026] FCA 16 (the Trial Judgment). The defined terms used in the trial judgment bear the same meaning in this judgment and the orders made above.
2. In the trial judgment I found that DC Road is entitled to a constructive trust over the whole of the Belrose Property and a portion of each of the Turramurra Property, the Saiala Property and the Clarence 104 Property. I also found that DC Road is entitled to an equitable charge over the Herbert Street Property and the DCZ Clarence Street Property. I expressed the preliminary view that a sale should be ordered of those properties, subject to hearing from the relevant mortgagees and unless they raise reasonable and sufficient grounds to the contrary.
3. NAB, CBA and Green Route have now been joined and served as parties pursuant to the leave which I granted on 23 January 2026. The applicants now seek orders for the judicial sale of each of those properties.
4. NAB is the registered mortgagee of the Belrose Property, the Clarence 104 Property and two of the three DSZ Clarence Street properties. At one point NAB appeared to indicate that they would neither consent to nor oppose the orders sought. However, about 13 minutes before today's hearing, a solicitor on behalf of NAB sent an email to the applicant's solicitors indicating two grounds of opposition to the proposed orders. One ground was that NAB opposed the trustee's remuneration being recovered in priority to NAB. The other ground is that the trustee for sale should go further than informing NAB of the minimum proposed price of a proposed sale and that the orders should state that the minimum sale price must be sufficient to repay amounts owing to NAB and discharge NAB's mortgage.
5. On the material available to me, it appears to me that both those grounds are likely to turn out to be academic in that there appears to be sufficient equity in the properties in question to ensure that NAB will be fully paid out by the judicial sale under the orders sought. Further, as to the second of the grounds of opposition, NAB will have an opportunity after receiving notice of the proposed minimum price to approach the court if it wishes to oppose a sale at that price.
6. In the absence of any appearance from NAB today to seek to persuade me to modify the orders in accordance with their email of this morning, I do not regard it as appropriate to adopt the changes proposed belatedly by NAB.
7. As to CBA, it is the registered mortgagee of the Turramurra Property and the Herbert Street Property. It has appeared at today's hearing and has indicated that it does not consent to nor oppose the orders sought by the applicants.
8. As to Green Route, it is the caveator of an interest claimed over the Saiala Property as mortgagee (and not over the Clarence 104 Property, contrary to what I said in the trial judgment at [472]). Green Route has not appeared and has not communicated with the applicant since being served.
9. The proposed orders seek the appointment of the trustees, the vesting of the properties in question in the trustees and the granting to the trustees of the power to sell those properties. The proceeds of sale from each property are sought to be distributed:

(a) first, to pay the trustees' reasonable costs;

(b) second, in payment of any outstanding outgoings on the relevant property prior to sale;

(c) third, to discharge any registered mortgages on title, including a mortgagee's costs associated with discharge;

(d) fourth, in payment to DC Road of the judgment sum and pre-judgment interest which have been calculated by the solicitors for the applicant. DC Road also seeks payment of post-judgment interest from the relevant sale proceeds for each property, with such post-judgment interest to be calculated on the figures specified in annexure A to the proposed orders (being the judgment sum plus pre-judgment interest). This accords with the orders of 23 January 2026 pursuant to which I held that DC Road was entitled to either a constructive trust or an equitable charge to the extent of a specific amount and pre-judgment interest on that amount. The total sum constitutes the 'judgment debt' to which post-judgment interest is referable pursuant to s 52 of the Federal Court of Australia Act 1976 (Cth): see Jackson v Conway [2000] FCA 1530 at [12] to [15] (Branson J); and

(e) finally, with the exception of the Belrose Property, any remainder to be paid to the registered proprietor of the relevant property.

1. In my view, orders to that effect are appropriate so as to enable the applicants to enforce the rights to which they are entitled, without prejudicing the interests of registered mortgagees. Accordingly, I make the above orders.

I certify that the preceding ten (10) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Jackman.

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