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The Azkadellia saga is heading for the courts amid threats of legal action to block last Thursday's sale of the Group One winning mare at a country horse auction in Victoria.

Azkadellia, previously trained by Ciaron Maher, was offered for sale at the Echuca District Livestock Exchange where bloodstock agent Seamus Mils secured the valuable mare for an undisclosed client for $615,000.

Lawyers acting for the Benjamin Connolly Racing Trust and four individuals who claim to hold registered security over Azkadellia have since alleged that the sale was "dishonest, deceitful and unlawful" and will make an application to the Victorian Supreme Court for an injunction if the mare is not surrendered by noon on Monday.

Sheamus Mills Bloodstock has been formally advised that the agrieved parties are registered as owners in the Personal Property Securities Register with the Australian Government Financial Security Authority.

"Seamus Mills Bloodstock have confirmed they were misled by being told that all parties had agreed to the sale of Azkadellia," said William Dawson, racing manager for the Connolly Racing Trust.

"They were not told that there were registered security liens over the horse by four individuals and would not be able to buy her with clear title.

 "It is obvious the sale was clandestine and meant to deceive and disadvantage the owners of Azkadellia and those who have a registered security.

"The allegation is her sale was a conspiracy to defraud. If the owners of the mare were aware of the sale they would have sought a Supreme Court injunction."

Echuca District Livestock Exchange, operated by auctioneers Andrew Wilson & Co and the Campaspe Shire Council, is advertised as a venue "where you can make a great deal as the horses tend to be cheaper (less than $4500) and it will be a quick auction style sale".

Azkadellia was certainly out of place in this market as she had recently been insured for $1.5 million based on validated valuations.

Dawson said an alleged debt to Ciaron Maher Racing was subject to a valid Deed of Settlement. He said this matter had been adjourned by VCAT until October 19 at the request of Ciaron Maher Racing.

"Ciaron Maher Racing had been placed on notice that if they intended to try to sell the horse they should advise Wilson Haynes Lawyers who advised that they would seek injunctive relief," Dawson said.