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High Court refuses application for default judgment against a credit servicing firm and other defendants, based on allegations of fraudulent mortgage documents and misappropriation of loan funds by the plaintiff's former advisors. The plaintiff claimed that the mortgage deed and loan documents were fabricated and that the defendants had no right to demand repayment or appoint receivers to the property. However, the court found that the plaintiff's assertions were contradictory and lacked prima facie evidence. The court emphasized that the defendants had a strong arguable defense, including the registration of the mortgage, and were entitled to a full trial to contest the allegations. The original High Court decision to vacate a lis pendens and direct the delivery of a Statement of Claim was upheld, with the court affirming the defendants' right to defend themselves in a full trial.
default judgment, credit servicing firm, mortgage fraud, fabricated documents, receivership, misappropriation of funds, prima facie evidence, contradictory assertions, Registration of Title Act 1964, lis pendens, High Court, trial, defense, interlocutory application.
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