In Macquarie Leasing Pty Ltd v DEQMO Pty Ltd  NSWSC 1466 the Supreme Court of NSW dealt with an application by Macquarie to amend the PPS Register to remove a security interest lodged over a truck by a company controlled by the debtor. Macquarie had registered a security interest over the truck but the registration had lapsed and not been extended. Macquarie had sold the truck by auction but the new security interest frustrated the sale.
Judge Rein decided that:
“There are a number of reasons why DEQMO’s claimed interest can be seen not to be a valid claim:◦(1) The claimed interest is one given by DEQMO to DEQMO. A person or company cannot give a security interest to itself: s 12 which defines security interest as “means an interest for personal property provided for by a transaction that in substance secures payment or performance of an obligation. (With regard to the former transaction or the identity or person who has title to the property)”.”
Judge Rein declared that DEQMO’s security interest was void and of no effect and ordered that the Registrar register a financing charge statement removing the registration of DEQMO’s claimed security interest. The Judge also restrained DEQMO its servants and agents or the debtor or any other company in which he is involved from registering or causing to be registered any financing statement claiming an interest.