Mhanna v Sovereign Capital Limited [2004] FCA 1300

FEDERAL COURT OF AUSTRALIA

Mhanna v Sovereign Capital Limited [2004] FCA 1300

CORPORATIONS – leave sought to institute proceedings in the name of the company pursuant to s 237 of the Corporations Act 2001 (Cth) – whether serious issue to be tried – whether company in default of loan agreement INTERLOCUTORY PROCEEDINGS – injunctions – balance of convenience – company seeks to prevent the sale, by its administrator, of property it has partially developed – no prospect of paying the amount owed – creditor likely to suffer loss if sale prevented

Corporations Act 2001 (Cth) ss 236, 237 Real Property Act 1900 (NSW) JOHN MHANNA & ORS v SOVEREIGN CAPITAL LIMITED & ANOR NSD 908 of 2004 SACKVILLE J SYDNEY 8 OCTOBER 2004

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NSD 908 of 2004

BETWEEN: JOHN MHANNA

FIRST PLAINTIFF

EMAN SHONODA

SECOND PLAINTIFF

HIGHWATCH PTY LIMITED (ADMINISTRATORS APPOINTED) (RECEIVERS AND MANAGERS APPOINTED) (ACN 101 120 389)

THIRD PLAINTIFF

AND: SOVEREIGN CAPITAL LIMITED (ACN 085 821 218)

FIRST DEFENDANT

RONALD JOHN DEAN-WILLCOCKS AND IAN JAMES PURCHAS AS ADMINISTRATORS OF HIGHWATCH PTY LTD (ADMINISTRATORS APPOINTED) (RECEIVERS AND MANAGERS APPOINTED) (ACN 101 120 389)

SECOND DEFENDANTS

JUDGE: SACKVILLE J

DATE OF ORDER: 8 OCTOBER 2004

WHERE MADE: SYDNEY

THE COURT ORDERS THAT: 1. The plaintiffs' application for leave pursuant to s 237 of the Corporations Act 2001 (Cth) be dismissed. 2. The application for interlocutory relief be dismissed. 3. The first and second plaintiffs pay the costs of the application for leave and the application for interlocutory relief. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA