Commissioner of Australian Federal Police v Xin; Tara Global Pty Ltd v The Official Trustee in Bankruptcy [2024] NSWSC 851

Supreme Court New South Wales

Medium Neutral Citation: Commissioner of Australian Federal Police v Xin; Tara Global Pty Ltd v The Official Trustee in Bankruptcy [2024] NSWSC 851 Hearing dates: 28 February 2024 Date of orders: 12 July 2024 Decision date: 12 July 2024 Jurisdiction: Common Law Before: Hamill J Decision: (1) The notice of motion brought by Tara Global Pty Ltd on 3 July 2023 and amended on 15 October 2023 in proceedings 2023/32255 is stayed on the following conditions: (a) Tara Global Pty Ltd shall have leave to amend its statement of claim in proceedings 2023/263865 in accordance with this judgment including (but not limited to) by adding the Commissioner of the Australian Federal Police as a defendant to those proceedings. (b) The stay of the proceedings does not prevent Tara Global Pty Ltd from seeking injunctive relief in accordance with its notice of motion but should do so in proceedings 2023/263865. (c) Such stay to remain in force until resolution of proceedings 2023/32255 and 2023/263865. (2) The application to stay proceedings 2023/263865 is dismissed. (3) Any amendment to the statement of claim in proceedings 2023/263865 is to be filed and served on or before Friday 9 August 2024. (4) Proceedings 2023/263865 shall be joined with proceedings 2023/32255 and are to be heard together. (5) Each of those proceedings is adjourned for mention and case management before the Registrar on 12 August 2024. (6) The parties will have 14 days to argue that some other costs order should be made, otherwise, costs on each of the notices of motion are reserved to the trial Judge. Catchwords: CIVIL LAW – proceeds of crime – restraining orders against 20 defendants – one defendant brings a motion alleging negligence by the Official Trustee in the management of restrained real property – failure to make mortgage repayments – default in mortgage – penalties charged – where mortgagee seeks to exercise right of sale – separate negligence proceedings – motions to stay or adjourn negligence proceedings and negligence motion – whether duplication of proceedings – where Judge ordered or suggested proceedings should be brought by separate proceedings – whether cause of action proceeds of crime – whether any damages for negligence would inevitably be subject of restraining orders – where forfeiture orders to be determined in the future – where Judge who made ex parte restraining orders allocated motion to stay proceedings – unfortunate happenstance Legislation Cited: Bankruptcy Act 1966 (Cth) Civil Liability Act 2002 (NSW), Pt 5 Civil Procedure Act 2005 (NSW), ss 5(1), 56, 56(1), 58, 59, 66, 67 International Covenant on Civil and Political Rights, art 14(1) Proceeds of Crime Act 2002 (Cth), ss 18, 18(2)(c), 19, 21, 29, 31, 38, 39, 276, 290, 319, 319(1), 319(2), 319(6), 329, 330 Real Property Act 1900 (NSW), ss 57(2)(b), 58(1) Cases Cited: Application by the Commissioner of the Australian Federal Police; In the matter of Xin & Ors [2023] NSWSC 46 Application by the Commissioner of the Australian Federal Police; In the matter of Xin & Ors (No 2) [2023] NSWSC 64 Australian Broadcasting Corporation v O'Neill (2006) 227 CLR 57; [2006] HCA 46 Batistatos v Roads and Traffic Authority of NSW (2006) 226 CLR 256; [2006] HCA 27 Commissioner of Australian Federal Police v Zhao (2015) 255 CLR 46; [2015] HCA 5 Dey v Victorian Railways Commissioners (1949) 78 CLR 62; [1949] HCA 1 Gao v Zhang (2005) 14 VR 380; [2005] VSCA 200 General Steel Industries Inc v Commissioner for Railways (NSW) and Others (1964) 112 CLR 125; [1964] HCA 69 GLJ v Trustees of the Roman Catholic Church for the Diocese of Lismore [2023] HCA 32; (2023) 97 ALJR 857 Gore v Van der Lann [1967] 2 QB 31; [1967] 1 All ER 360 Habib v Radio 2UE Sydney Pty Ltd [2009] NSWCA 231 Jago v District Court of NSW (1989) 168 CLR 23; [1989] HCA 46 Johnson v Gore Wood & Co [2002] 2 AC 1; [2001] 1 All ER 481 Kermani v Westpac Banking Corporation (2012) 36 VR 130; [2012] VSCA 42 Lidden v Composite Buyers Ltd (1996) 67 FCR 560; (1996) 139 ALR 549 Livingstone v Mitchell [2020] NSWSC 1464 Michael Wilson & Partners Ltd v Nicholls (2011) 244 CLR 427; [2011] HCA 48 Moore and Others v Inglis (1976) 9 ALR 509; (1976) 50 ALJR 589 Moti v The Queen (2011) 245 CLR 456; [2011] HCA 50 New South Wales Bar Association v Stevens [2003] NSWCA 95 Oceanic Sun Line Special Shipping Co Inc v Fay (1988) 165 CLR 197; [1988] HCA 32 Onley v Commissioner of Australian Federal Police [2019] NSWCA 101; (2019) 277 A Crim R 200 PNJ v The Queen [2009] HCA 6; (2009) 83 ALJR 384 Re Queensland Electricity Commission; Ex parte Electrical Trades Union of Australia [1987] HCA 27; (1987) 61 ALJR 393 Rogers v The Queen (1994) 181 CLR 251; [1994] HCA 42 Rozenblit v Vainer (2018) 262 CLR 478; [2018] HCA 23 Ruzehaji v Commissioner of the Australian Federal Police (2015) 124 SASR 355; [2015] SASCFC 182 Sali v SPC Ltd [1993] HCA 47; (1993) 67 ALJR 841 Sydney City Council v Ke-Su Investments Pty Ltd (1985) 1 NSWLR 246; (1985) 54 LGRA 232 Thirteenth Corp Pty Ltd v State and Others [2006] FCA 979; (2006) 232 ALR 491 Toben v Nationwide News Pty Ltd (2016) 93 NSWLR 639; [2016] NSWCA 296 Voth v Manildra Flour Mills Pty Ltd (1990) 171 CLR 538; [1990] HCA 55 Walton v Gardiner (1993) 177 CLR 378; [1993] HCA 77 Wigmans v AMP Ltd (2021) 270 CLR 623; [2021] HCA 7 Williams v Spautz (1992) 174 CLR 509; [1992] HCA 34 Texts Cited: International Covenant on Civil and Political Rights, art 14(1) Category: Principal judgment Parties: Australian Federal Police (Applicant) The Official Trustee in Bankruptcy (Applicant) Tara Global Pty Ltd (Respondent) Perpetual Corporate Trust Limited (Interested party) Representation: Counsel: A Moses and W Liu (Applicants) M Young (Respondent) M Collins (Interested party)