Nova Supply Chain Finance Pty Limited v Active Capital Reinsurance Limited (a company incorporated in Barbados) [2024] FCA 1398

Federal Court of Australia

Nova Supply Chain Finance Pty Limited v Active Capital Reinsurance Limited (a company incorporated in Barbados) [2024] FCA 1398 File number: NSD 1515 of 2024

Judgment of: JACKMAN J

Date of judgment: 29 November 2024

Catchwords: PRACTICE AND PROCEDURE – application to discharge freezing orders – whether balance of convenience favours the continuation of the orders – where orders served on banks – where respondents' bank accounts frozen – where, if the orders were permitted to remain, companies would be wound up and the second respondent would be personally bankrupted – freezing orders discharged upon the respondents undertaking to the applicant and the Court that they will not dispose of or deal with any assets except for the purposes of paying their ordinary living expenses, legal expenses and business expenses, or otherwise with the consent of the plaintiff in writing PRACTICE AND PROCEDURE – observations on the frequency of applications to vary freezing orders because of difficulties in operating bank accounts – suggested that the onus be on the party seeking a freezing order to justify any proposal to give notice of the order to a bank or financial institution which is not itself a party to the order

Legislation: Federal Court of Australia Act 1976 (Cth) s 37M

Cases cited: Customs and Excise Commissioners v Barclays Bank plc [2006] UKHL 28; [2007] 1 AC 181 Rambaldi (Trustee) v Meletsis, in the matter of the bankrupt estate of Karas (No 3) [2022] FCA 807 The Bank v A Ltd [2000] EWHC J0517-13; (2000) LLR 271