Aquila Resources Limited v Spark [2003] FCA 394

FEDERAL COURT OF AUSTRALIA

Aquila Resources Limited v Spark [2003] FCA 394 CORPORATIONS LAW – interlocutory injunction – stay on resolution affecting certain respondents – whether existence of statutory remedy precludes balance of convenience – weighing in favour of applicant – relevance of new rights arguably to be created by resolution

Corporations Act 2001(Cth) ss 439C, 445A, 445B, 445D, 445D(2), 447A, 447E, 1324 Trade Practices Act 1974 (Cth) s 52 AQUILA RESOURCES LIMITED and AQUILA EHM PTY LTD v JOHN M SPARK, PETER D McCLUSKEY, SAVAGE RESOURCES LIMITED and SAVAGE EHM FINANCE PTY LTD W3007 of 2003 RD NICHOLSON J 27 MARCH 2003 PERTH (via video-link to Sydney)

IN THE FEDERAL COURT OF AUSTRALIA

WESTERN AUSTRALIA DISTRICT REGISTRY W3007 OF 2003

BETWEEN: AQUILA RESOURCES LIMITED (ACN 092 002 769)

FIRST APPLICANT

AQUILA EHM PTY LTD (ACN 095 529 445)

SECOND APPLICANT

AND: JOHN M SPARK

FIRST RESPONDENT

PETER D McCLUSKEY

SECOND RESPONDENT

SAVAGE RESOURCES LIMITED (SUBJECT TO DEED OF COMPANY ARRANGEMENT) (ACN 009 551 624)

THIRD RESPONDENT

SAVAGE EHM FINANCE PTY LTD (SUBJECT TO DEED OF COMPANY ARRANGEMENT) (ACN 071 375 221)

FOURTH RESPONDENT

JUDGE: RD NICHOLSON J

DATE OF ORDER: 27 MARCH 2003

WHERE MADE: PERTH

THE COURT ORDERS THAT: 1. An injunction, pending the outcome of this application, restraining the first and second respondents from putting forward any resolution to the creditors of the third and four respondents, as proposed in paragraph 2 of the notice of meeting dated 14 March 2003, to vary each of the Deeds of Company Arrangements to permit or require entry into a Deed of Cross Assumption of Claims, so as to bind the third and fourth respondents. 2. Costs be reserved. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.