HCK China Investments Ltd v Solar Honest Ltd [1999] FCA 1156

FEDERAL COURT OF AUSTRALIA HCK China Investments Ltd v Solar Honest Ltd [1999] FCA 1156 CONTRACT – where contracts executed in breach of Corporations Law – where Corporations Law provides for consequences of breach – whether contracts unenforceable for illegality DEED – where efficacy of document as a deed determined by foreign law – where document not executed in accordance with company's articles of association – principles governing execution of a document by affixation of a corporate seal – indoor management rule – whether a document which is inoperative as a deed can operate as a contract – principles governing consideration in contract STAMP DUTY – Duties Act 1997 (NSW) – where duty payable on a mortgage – whether a mortgage is unenforceable by reason of payment of the incorrect amount of duty EQUITY – trusts – whether transfer of legal title for no consideration gives rise to a presumption of resulting trust – whether transfer of legal title by way of mortgage rebuts a presumption of resulting trust – whether a mortgage can exist in the absence of a debt or obligation – principles governing rebuttal of a presumption of resulting trust Corporations Law ss 103, 232, 236, 243F, 243H, 243Q, 243ZE, 243ZF, 257C, 260A, 260B, 260D, 613, 615, 623, 703, 737 and 1308 Duties Act 1997 (NSW) ss 204, 205, 206, 207, 210, 211 and 304 Evidence Act 1995 (Cth) ss 38 and 42 Conveyancing and Property Ordinance (Hong Kong) ss 19 and 20 International Business Companies Act 1984 (British Virgin Islands) s 72 Companies Act 1862 (UK) s 55

Nelson v Nelson (1995) 184 CLR 538 applied O'Neill v O'Connell (1945) 72 CLR 101 referred to Bassin v Standen (1946) 46 SR (NSW) 16 referred to Fitzgerald v Leonhardt (1997) 189 CLR 215 cited Batoka Pty Ltd v Jackson (1998) 30 ACSR 67 cited MYT Engineering Pty Ltd v Mulcon Pty Ltd (1997) 15 ACLC 1057; 25 ACSR 78 cited MYT Engineering Pty Ltd v Mulcon Pty Ltd [1999] HCA 24 cited Ernest v Nicholls (1857) 6 HLC 401 cited D'Arcy v The Tamah, Kit Hill and Callington Railway Co (1867) LR 2 Ex 158 cited Equity Nominees Ltd v Tucker (1967) 116 CLR 518 applied Woo Turhan & Anor v Taiwan Fuji Trading (HK) Ltd (1995) 2 HKC 481 referred to The Royal British Bank v Turquand (1856) 6 El & Bl 327 [119 ER 886] considered Pitt, Son & Badgery v The Municipal Council of Sydney (1907) 8 SR (NSW) 1 cited Westpac Banking Corporation v Dawson (1990) 19 NSWLR 614 cited Ellison v Vukicevic (1986) 7 NSWLR 104 cited Shamu Patter v Abdul Kadir Ravuthan (1912) TLR 583 cited Northside Developments Pty Ltd v Registrar-General (1989-1990) 170 CLR 146 referred to 195 Crown Street Pty Ltd v Hoare [1969] 1 NSWR 193 referred to Story v Advance Bank Australia Ltd (1993) 31 NSWLR 722 cited County of Gloucester Bank v Rudry Merthyr Steam & House Coal Colliery Company [1895] 1 Ch 629 cited Laws Holdings Pty Ltd v Short (1972) 46 ALJR 563 cited Hooker Corporation Ltd v The Commonwealth of Australia (1985) 82 FLR 321 cited Corin v Patton (1987) 13 NSWLR 15 referred to Corin v Patton (1989-1990) 169 CLR 540 referred to Beaton v McDivitt (1987) 13 NSWLR 162 cited Howard v Patent Ivory Manufacturing Co (1888) 38 ChD 156 cited Davies v R Bolton & Company [1894] 3 Ch 678 cited Re Horizon Pacific Ltd (1976-1977) 2 ACLR 495 cited Re Wakim; Ex parte McNally [1999] HCA 27 cited McKay v National Australia Bank [1998] 1 VR 173 cited Boothey v Boothey (unreported, Supreme Court of Western Australia, 13 March 1997) cited Wigan v Edwards (1973) 47 ALJR 586 applied Collins v Godefroy (1831) 1 B & Ad 950 [109 ER 1040] cited Westdeutsche Bank v Islington LBC [1996] AC 669 considered and applied Saunders v Vautier (1841) 5 Beav 115 [49 ER 282] referred to Kathleen Investments (Aust) Ltd v The Australian Atomic Energy Commission (1977) 139 CLR 117 cited Whitehouse v Carlton Hotel (1982) 7 ACLR 329 cited Westpac v Mousellis (1985) 17 ATR 49 considered Handevel Pty Ltd v Comptroller of Stamps (Victoria) (1985) 157 CLR 177 applied Jacobson v Williams (1919) 48 DLR 51 followed GM Industries Pty Ltd (in liq) and the Companies Act (1980) ACLC ¶40-665 followed Lincoln v Wright (1859) 4 De G & J 16 [45 ER 6] referred to In re Vandervell's Trusts (No 2) [1974] 1 Ch 269 applied Vandervell v IRC [1967] 2 AC 291 referred to Charles Marshall Pty Ltd v Grimsley (1956) 95 CLR 353 referred to Shephard v Cartwright [1955] AC 431 referred to House v Caffyn [1922] VLR 67 referred to