Sahab Holdings Pty Ltd v Tonks [2023] NSWCA 12

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Sahab Holdings Pty Ltd v Tonks [2023] NSWCA 12 Hearing dates: 19 October 2022 Date of orders: 15 February 2023 Decision date: 15 February 2023 Before: Macfarlan JA at [1] Meagher JA at [2] Kirk JA at [3] Decision: (1) Dismiss the appeal (2) Order the appellant to pay the respondents' costs Catchwords: CORPORATIONS — Receivers and managers — Application for inquiry under s 423(1) of the Corporations Act 2001 (Cth) — Language of "prima facie case" to be avoided — Whether receivers obliged to defend proceedings against company — Leave required to compromise a claim — Whether receivers entitled to use litigation as a means to seek to renegotiate a pre-existing contractual relationship — Receivers' approach manifested a reasonable commercial judgment in the circumstances — Appeal dismissed Legislation Cited: Corporations Act 2001 (Cth), s 420, s 423, s 536, s 90-10 of Sch 2 Supreme Court Act 1970 (NSW), ss 67, 68 Uniform Civil Procedure Rules, Pt 26 Cases Cited: BL & GY International Co Ltd v Hypec Electronics Pty Ltd (2010) 79 ACSR 558; [2010] NSWSC 959 Burns Philp Investments Pty Ltd v Dickens (1993) 11 ACLC 272 Djordjevich v Rohrt [2022] VSCA 84 Hall v Poolman (2009) 75 NSWLR 99; [2009] NSWCA 64 Kanjian Holdings No 1 Pty Ltd v Kanjian; Kanjian v Kanjian (No 3) [2021] NSWSC 839 Kanjian v Kanjian (No 2) [2021] NSWSC 14 Kanjian v Kanjian [2019] NSWSC 166 Leslie v Hennessy [2001] FCA 371 Naxatu Pty Ltd v Perpetual Trustee Co Ltd (2012) 207 FCR 507; [2012] FCAFC 163 Northbourne Developments Pty Ltd v Reiby Chambers Pty Ltd (1989) 19 NSWLR 434 Re St Gregory's Armenian School (in liq) (2012) 92 ACSR 588; [2012] NSWSC 1215 Senses Northbridge Pty Ltd v Sahab Holdings Pty Ltd (No 2) [2019] NSWSC 1458 Senses Northbridge Pty Ltd v Sahab Holdings Pty Ltd (No 3) [2020] NSWSC 345 Senses Northbridge Pty Ltd v Sahab Holdings Pty Ltd [2019] NSWSC 1201 Category: Principal judgment Parties: Sahab Holdings Pty Ltd (Appellant) Bradley John Tonks (First Respondent) Mark Roufeil (Second Respondent) Representation: Counsel: AJL Bannon SC / MR Davis (Appellant) R Glasson (Respondents)