In the matter of Caernarvon Canobolas Pty Ltd (In Liq) [2022] NSWSC 382

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Caernarvon Canobolas Pty Ltd (In Liq) [2022] NSWSC 382 Hearing dates: 20 – 23 July and 10 – 11 August 2021 Decision date: 05 April 2022 Jurisdiction: Equity Before: Ward CJ in Eq Decision: 1. The appeal be allowed. 2. The liquidator's determination to admit the proof of debt dated 15 November 2019 submitted by the second and third respondent be set aside and the proof of debt be rejected. 3. The second and third respondents pay the costs of: (a) the applicant and the first respondent of and incidental to the amended interlocutory process in this proceeding; and (b) the applicant and the first respondent (including liquidation costs, expenses and liquidators' remuneration) of and incidental to the submission, consideration and determination by the liquidators of the proof of debt dated 15 November 2019 submitted by the second and third respondents. Catchwords: CORPORATIONS – Winding up – Proceedings against company – Where debt disputed – whether parties reached agreement that costs of renovations would be recorded as a loan against the company EVIDENCE – Documentary evidence – Business records – whether records were contemporaneous or issued retrospectively ESTOPPEL – Promissory estoppel – Existing or expected legal relationship – whether the Company accepted or acquiesced to a benefit to the detriment of the second and third respondents EQUITY – Equitable remedies – Restitution Legislation Cited: Corporations Act 2001 (Cth), ss 286, 477(2B), Schedule 2 Evidence Act 1995 (NSW), ss 48, 57(1), 58(1), 69 Supreme Court (Corporations) Rules 1999 (NSW), r 14.1(5) Trustee Act 1925 (NSW), s 81 Cases Cited: Angas Law Services Pty Ltd (in liq) v Carabelas (2005) 226 CLR 507; [2005] HCA 23 Australia and New Zealand Banking Group Ltd v Westpac Banking Corporation (1988) 164 CLR 662; [1988] HCA 17 Australian Competition and Consumer Commission v Air New Zealand Ltd (No 1) (2012) 207 FCR 448; [2012] FCA 1355 Brick & Pipe Industries Ltd v Occidental Life Nominees Pty Ltd (1992) 6 ACSR 464; [1992] 2 VR 279 Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 Broadway Plaza Investments Pty Ltd v Broadway Plaza Pty Ltd [2020] NSWSC 1778 Brodyn Pty Ltd v Dasein Constructions Pty Ltd [2004] NSWSC 1230 Capital Securities XV Pty Ltd (formerly known as Prime Capital Securities Pty Ltd) v Calleja [2018] NSWCA 26 Capocchiano v Young [2013] NSWSC 879 Commercial Union Assurance Company of Australia Ltd v Ferrcom Pty Ltd (1991) 22 NSWLR 389 Commonwealth v Verwayen (1990) 170 CLR 394; [1990] HCA 39 Damberg v Damberg (2001) 52 NSWLR 492; [2001] NSWCA 87 David Securities Pty Ltd v Commonwealth Bank of Australia (1992) 175 CLR 353; [1992] HCA 48 DHJPM Pty Ltd v Blackthorn Resources Ltd (2011) 83 NSWLR 728; [2011] NSWCA 348 Doueihi v Construction Technologies Australia Pty Ltd (2016) 92 NSWLR 247; [2016] NSWCA 105 Effem Foods Pty Ltd v Lake Cumberline Pty Ltd (1999) 161 ALR 599; [1999] HCA 15 El-Saafin v Franek (No 3) (2019) 143 ACSR 452; [2019] VSC 155 Falcke v Scottish Imperial Insurance Co (1886) 34 Ch D 234 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Federal Commissioner of Taxation v Cassaniti (2018) 266 FCR 385; [2018] FCAFC 212 Fitzgerald v F J Leonhardt Pty Ltd (1997) 189 CLR 215; [1997] HCA 17 Gregg v The Queen (2020) 355 FLR 348; [2020] NSWCCA 245 Grundt v Great Boulder Pty Gold Mines Ltd (1937) 59 CLR 641; [1937] HCA 58 Herdegen v Commissioner of Taxation (Cth) (1988) 84 ALR 271; [1988] FCA 699 Hill v Esplanade Wollongong Pty Limited (subject to a deed of company arrangement) [2018] NSWSC 478 Hutchinson v Sydney (1854) 10 Ex 438 In re Bailey, Hay & Co Ltd [1971] 1 WLR 1357 In re Express Engineering Works Ltd [1920] 1 Ch 466 In re Oxted Motor Co Ltd [1921] 3 KB 32 In the matter of Azmac Pty Ltd (In Liq) (2020) 146 ACSR 113; [2020] NSWSC 204 In the matter of Hillsea Pty Limited [2019] NSWSC 1152 Johnston v McGrath (2008) 67 ACSR 169; [2008] NSWSC 639 Jorden v Money (1854) 5 HL 185 Legione v Hateley (1983) 152 CLR 406; [1983] HCA 11 Lumbers v W Cook Builders Pty Ltd (in liq) (2008) 232 CLR 635; [2008] HCA 27 MYT Engineering Pty Ltd v Mulcon Pty Ltd (1999) 195 CLR 636; [1999] HCA 24 Parker & Cooper Ltd v Reading [1926] Ch 975 Pavey & Mathews Pty Ltd v Paul (1987) 162 CLR 221; [1987] HCA 5 Re ACN 096 281 542 Ltd (in liq) [2018] VSC 425 Re Duomatic Ltd [1969] 2 Ch 365 Re St Gregory's Armenian School Inc (2015) 109 ACSR 27; [2015] NSWSC 1465 Rickard Constructions Pty Ltd v Rickard Hails Moretti Pty Ltd [2004] NSWSC 984 Rosseau Pty Ltd (in liq) v Jay-O-Bees Pty Ltd (in liq) (2004) 50 ACSR 565; [2004] NSWSC 818 Ryan v Dries [2002] NSWCA 3; (2002) 10 BPR 19,497 Spencer v The Commonwealth (1907) 5 CLR 418; (1907) 14 ALR 253 Sutherland (in his capacity as liquidator of Sydney Appliances Pty Ltd (in liq)) v Robert Bosch (Australia) Pty Ltd (2000) 33 ACSR 680; [2000] NSWSC 32 Tanning Research Laboratories Inc v O'Brien (1990) 169 CLR 332; [1990] HCA 8 Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387; [1988] HCA 7 Watson v Foxman (1995) 49 NSWLR 315 Westpac Banking Corp v Totterdell (1998) 20 WAR 150; (1998) 29 ACSR 448 Winterton Constructions Pty Ltd v Hambros Australia Ltd (1991) 101 ALR 363 Texts Cited: P L Davies, Gower and Davies' Principles of Modern Company Law (7th ed, Sweet & Maxwell, 2003) Category: Principal judgment Parties: Timothy Hall (Plaintiff) Bonny Glen Fruits Pty Ltd (First Defendant) Bernard Hall (Second Defendant) Bonny Glen Trading Pty Ltd (Third Defendant) Caernarvon Canobolas Pty Ltd (Fourth Defendant) Melrose Park Nashdale Pty Ltd (Fifth Defendant) Frederick Charles Hall (Sixth Defendant) Pamela Therese Hall (Seventh Defendant) Representation: Counsel: D Smallbone with A Smyth (Applicant) A Spencer (2nd and 3rd Respondents)