In the matter of St Gregory’s Armenian School Inc (in liq) (No 2) [2020] NSWSC 1601

Supreme Court New South Wales

Medium Neutral Citation: In the matter of St Gregory's Armenian School Inc (in liq) (No 2) [2020] NSWSC 1601 Hearing dates: 9 November 2020 Date of orders: 13 November 2020 Decision date: 13 November 2020 Jurisdiction: Equity - Corporations List Before: Gleeson J Decision: (1) Declare that the claims for relief by the applicants, Michael Ghougassian and Daniel Ghougassian, in the interlocutory processes filed 2 March 2020 and 17 August 2020 are stayed by operation of s 60(2) of the Bankruptcy Act 1966 (Cth). (2) Dismiss the applicants' interlocutory process filed 11 October 2020. Catchwords: BANKRUPTCY – where applicants challenge distribution of surplus property of incorporated association in liquidation – Associations Incorporation Act 1984 (NSW) s 53 – where applicants subsequently become bankrupts – whether applicants' interlocutory processes stayed by Bankruptcy Act 1966 (Cth), s 60(2) – whether s 60(2) subject to implied limitation that the action must have necessary connection to bankrupt's estate – Bankruptcy Act 1966 (Cth), s 60(4) – whether wrong done to the bankrupts – declaration made PRACTICE AND PROCEDURE – where bankrupts apply to remove themselves as parties and join new party to interlocutory processes – whether removal of parties appropriate – whether joinder of new party proper or necessary – Uniform Civil Procedure Rules 2005 (NSW) r 6.24 – application dismissed Legislation Cited: Associations Incorporation Act 1984 (NSW), ss 51, 53 Associations Incorporation Act 2009 (NSW), s 65 Bankruptcy Act 1924 (Cth), s 63 Bankruptcy Act 1966 (Cth), ss 5, 52, 53, 58, 60, 116 Corporations Act 2001 (Cth), ss 482, 488 Judiciary Act 1903 (Cth), s 39B Legal Profession Uniform Law Application Act 2014 (NSW), s 71 Passenger Transport Act 1990 (NSW) Supreme Court Act 1970 (NSW), s 23 Uniform Civil Procedure Rules 2005 (NSW), r 6.24 Cases Cited: Australian Securities Commission v Marlborough Gold Mines Ltd (1993) 177 CLR 485; [1993] HCA 15 Cox v Journeaux (No 2) (1935) 52 CLR 713; [1935] HCA 48 Cummings v Claremont Petroleum NL (1996) 185 CLR 124; [1996] HCA 19 Daemar v Industrial Commission of New South Wales (1988) 12 NSWLR 45 Duckworth v Watercorp (2012) 261 FLR 185; [2012] WASC 30 Fisher v Transport for New South Wales [2016] NSWSC 1888 Fletcher v Westpac [2012] WASCA 154 Fuller v Beach Petroleum NL; Cummings v Beach Petroleum NL (1993) 43 FCR 60 Garrett v Commissioner of Taxation (2015) 233 FCR 226; [2015] FCA 665 Griffiths v Civil Aviation Authority (1996) 67 FCR 301; [1996] FCA 1502 In the matter of St Gregory's Armenian School In (in liq) [2011] NSWSC 936 In the matter of St Gregory's Armenian School Inc; Ghougassian v Arnautovic in his capacity as liquidator of St Gregory's Armenian School Inc [2018] NSWSC 1022 John McInerney and Phillip Campbell-Wilson in their capacity as liquidators of St Gregory's Armenian School Inc v Michael Ghougassian & Anor [2020] NSWSC 197 John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd (2010) 214 CLR 1; [2010] HCA 19 John v Neiman Holdings Pty Ltd (1986) 84 FLR 84 McInerney, in the matter of Ghougassian v Ghougassian [2020] FCA 1230 Moss v Eaglestone (2011) 83 NSWLR 476;[2011] NSWCA 404 Nugawela v Deputy Commissioner of Taxation [2018] FCA 1457 Owens v Comlaw [2006] VSCA 151; (2006) 201 FLR 75 Re Brashs Pty Ltd (1994) 15 ACSR 477 Re Lofthouse (2001) 107 FCR 151; [2001] FCA 25 Want v Moss (1889) 10 LR NSW 274 Category: Principal judgment Parties: John McInerney in his capacity as a liquidator of St Gregory's Armenian School Inc (First plaintiff) Phillip Campbell-Wilson in his capacity as a liquidator of St Gregory's Armenian School Inc (Second plaintiff) Michael Ghougassian (First defendant) Daniel Ghougassian (Second defendant) David John Kerr as trustee of the bankrupt estates of Michael Ghougassian and Daniel Ghougassian Representation: Counsel: N Newton (Plaintiffs / Respondents) P King (Defendants / Applicants) H Hitch (Trustee in bankruptcy)