In the matter of Jewel of India Holdings Pty Ltd [2022] NSWSC 356

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Jewel of India Holdings Pty Ltd [2022] NSWSC 356 Hearing dates: 15 and 16 March 2022 Date of orders: 30 March 2022 Decision date: 30 March 2022 Jurisdiction: Equity - Corporations List Before: Williams J Decision: Application to set aside summonses issued under Corporations Act 2001 (Cth), s 596A dismissed. Application to set aside orders for production issued under Civil Procedure Act 2005 (NSW), s 68 adjourned for directions as to a further hearing. Catchwords: CORPORATIONS – application to set aside examination summonses and orders for production – summonses issued under Corporations Act 2001 (Cth), s 596A to former administrators and liquidators of company in liquidation on the application of former director and shareholder and claimed creditor of the company to whom eligible applicant status had been granted – where applicants' stated purpose of the examinations is to investigate potential claims against former administrators and liquidators in relation to (a) the sale of the company's business and (b) their failure to investigate potential claims of the company against its secured lender – whether stated purpose genuinely held – whether examination summonses issued for the predominant purpose of former director attempting to secure commercial leverage against liquidators in relation to claims foreshadowed by the liquidators against the former director – where liquidators unfunded – whether examinations and orders for production unjustifiably oppressive. Legislation Cited: Corporations Act 2001 (Cth), ss 596A, 597B Cases Cited: Bradshaw v McEwans Pty Ltd (1954) 217 ALR 1 Re Equiticorp Finance Ltd; Ex parte Brock (No. 2) (1992) 27 NSWLR 391 Re Godfrey (as liquidator of Pobje Agencies Pty Ltd) (2007) 61 ACSR 54; [2007] NSWSC 138 Kimberley Diamonds Limited v Arnautovic (2017) 252 FCR 244; [2017] FCAFC 91 New Zealand Steel (Australia) Pty Ltd v Burton (1994) 13 ACSR 610 Re Newheadspace Pty Ltd (in liq) (2020) 144 ACSR 224; [2020] NSWSC 173 Re Normans Wines Ltd (receivers and managers appointed) (in liq) (2004) 88 SASR 541; [2004] SASC 171 Re Southland Coal Pty Ltd (recs and mngrs apptd) (in liq) (2006) 58 ACSR 113; [2006] NSWSC 184 Re Total Entity Pty Ltd (in liq) (2003) 47 ACSR 577; [2003] NSWSC 924 Walton v ACN 004 410 833 Ltd (formerly Arrium Ltd) (in liq) [2022] HCA 3 Williams v Spautz (1992) 174 CLR 509 Category: Principal judgment Parties: James Douglas Dampney (First Applicant) Peter James Gothard (Second Applicant) Stephen James Parbery (Third Applicant) Mr Kishore Matta (First Respondent) Avia Corporate FS Pty Ltd ACN 164 538 354 (Second Respondent) Representation: Counsel: Mr J K Kirk SC and Mr J Hynes (Applicants) Mr M A Izzo SC and Ms J Shepard (Respondents)