Mahmut, C. & Anor v Poyala Pty Ltd & Ors [1987] FCA 352

NOT FOR _ DISTRIBUTION 352. tos

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY No. G 12 of 1985

GENERAL DIVISION

BETWEEN : CAVIT MAHMUT and AYSE MAHMUT Applicants AND: POYALA PTY. LIMITED

First Respondent

GEORGE KOVARI and JUDITH KOVARI

Second Respondents

MINUTE OF ORDER

JUDGE MAKING ORDER : Neaves J. DATE OF ORDER : 10 July 1987 WHERE MADE : Canberra

THE COURT ORDERS THAT:

1. There be judgment for the applicants against the respondents in the sum of $10,000.

2. The respondents pay the applicants' costs of the proceeding.

Note: Settlement and entry of orders is dealt wit of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY No. G 12 of 1985

wee ww

GENERAL DIVISION

BETWEEN: CAVIT MAHMUT and AYSE MAHMUT Applicants AND: POYALA PTY. LIMITED

First Respondent

GEORGE KOVARI and JUDITH KOVART

Second Respondents

CORAM: Neaves J.

DATE: <>

REASONS _FOR JUDGMENT

This proceeding arises out of the purchase by Cavit Mahmut and Ayse Mahmut ("the applicants") of a take-away food business, called Judy's Food Bar, pursuant to a contract dated 12 October 1983 between the applicants and Poyala Pty. Limited ("the first respondent") of which George Kovari and Judith Kovar1 ("the second respondents") were, and are, the sole shareholders and directors. The applicants claim damages under

the Trade Practices Act 1974 (Cth) ("the Act") for alleged

breaches of s.52 thereof.

Background

By their amended statement of claim the applicants allege that the first respondent engaged in conduct that was

misleading or deceptive in the sale of the business' to the

applicants. Particulars of the conduct relied upon are -

(a) The first respondent, by its agent Phillip Charles Miller, orally represented to the applicants that the business was making a profit of $1,500 to $1,800 per week to a husband and wife both working in the business;