National Australia Bank Limited v Norman [2012] VSC 14

In National Australia Bank Limited v Norman [2012] VSC 14 the court noted:

“The counterclaim was comprised of random, almost incomprehensible, statements, propositions, quotations, argument and references to other material that appeared to have been lifted from other documents and randomly pasted into the pleading.  Passages were quoted from Magna Carta and the Bible.”

The defendants argued that the Plaintiff had “…no right whatsoever to claim payments in cash currency in return for the book-entry credit’.”  alleging that “…the bank had given no value to them by the ‘book-entry credit’ and thus the advances were not repayable and the mortgage unenforceable. .. because the bank had not made the advances.” They alleged that “what purported to loans or advances, reflected in credit and debit entries in their bank accounts, were merely creations of the bank ‘out of thin air’.”  It was further alleged that the securitization of the mortgage blocked the right of the bank to foreclose, because it had profited multiple times from the mortgage.

“Mr Norman’s contention that the bank had not made recoverable advances was no more than a reworking of allegations made by borrowers of in Fisher v Westpac Banking Corporation [1992] FCA 390  and Arnold v State Bank of South Australia [1992] FCA 554.  In those cases, a debtor contended that loans purportedly made by a bank did not create a recoverable debt because they had been created as book entry credits and were not supported by assets in currency or real wealth.  In common with the present case, the allegations sought to invoke various Biblical injunctions, Magna Carta, and alleged international conspiracies.”

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