Plutus Payroll Australia Pty Ltd (in liquidation) v Saikali [2024] NSWSC 1093

Supreme Court New South Wales

Medium Neutral Citation: Plutus Payroll Australia Pty Ltd (in liquidation) v Saikali [2024] NSWSC 1093 Hearing dates: 24-28 June 2024 Date of orders: 28 August 2024 Decision date: 28 August 2024 Jurisdiction: Equity - Commercial List Before: Nixon J Decision: See [651] Catchwords: CORPORATIONS – directors and officers – where officers of First Plaintiff breached their statutory duties by transferring funds of the First Plaintiff to a lawyer's trust account in response to blackmail threats – whether Second to Fourth Defendants were involved in any such contravention EQUITY – fiduciary duties – whether Second to Fourth Defendants knowingly assisted in a breach of fiduciary duty by the officers or by an employee of the First Plaintiff – whether Second to Fourth Defendants knowingly received property of the First Plaintiff as a result of such breach CORPORATIONS – voidable transactions – whether transactions made using the company funds which had been paid into the lawyer's trust account in response to the blackmail threats were transactions of the company – whether the transactions were uncommercial transactions and insolvent transactions RELIEF – whether funds transferred into the lawyer's trust account were funds which the First Plaintiff held on trust – whether the Commonwealth has recovered such funds by the forfeiture of property in proceedings under the Proceeds of Crime Act 2002 (Cth) – whether the Plaintiffs ought to have sought an exclusion order in respect of the forfeiture of such property – whether any order for relief would offend the principle against double recovery or double proof – whether the Court should exercise discretion to deny or reduce relief EVIDENCE – where Plaintiffs tendered recordings and transcripts of conversations which had been obtained by the Australian Federal Police – where this material had been given in evidence in criminal proceedings and where recordings had been played in the course of those proceedings – whether this material was admissible under the Telecommunications (Interception and Access) Act 1979 (Cth) and the Surveillance Devices Act 2004 (Cth) – whether this material fell within section 69(3) of the Evidence Act 1995 (NSW) Legislation Cited: Corporations Act 2001 (Cth), ss 9, 79, 95A, 181, 182, 251A, 556, 588FA, 588FB, 588FC, 588FE, 588FF, 588FG, 1317H Court Suppression and Non-publication Orders Act 2010 (NSW), s 3 Evidence Act 1995 (NSW), ss 69, 135, 136, 140 Proceeds of Crime Act 2002 (Cth), ss 70, 73, 74, 92A Public Governance, Performance and Accountability Act 2013 (Cth) Surveillance Devices Act 2004 (Cth), ss 6, 44, 45 Taxation Administration Act 1953 (Cth), Sch 1, s 255-5 Telecommunications (Interception and Access) Act 1979 (Cth) ss 5, 5B, 6E, 6EA, 7, 46, 49, 55, 60, 63, 74, 75, 75A, 77, 78 Telecommunications (Interception) Amendment Act 2000 (Cth) Cases Cited: A Pty Ltd v Z [2007] NSWSC 999 Addenbrooke Pty Ltd v Duncan (No 2) [2017] FCAFC 76 Addenbrooke Pty Ltd v Duncan (No 5) [2014] FCA 625 Advanced Holdings Pty Ltd atf Demian Trust v Commissioner of Taxation [2021] FCAFC 135 Anchorage Capital Master Offshore Ltd v Sparkes (2023) 111 NSWLR 304; [2023] NSWCA 88 Anderson v Canaccord Genuity Financial Ltd [2023] NSWCA 294 Anderson v Canaccord Genuity Financial Ltd (No 2) [2024] NSWCA 161 Australian Securities and Investments Commission (ASIC) v ActiveSuper Pty Ltd (in liq) (2015) 235 FCR 181; [2015] FCA 342 Australian Securities and Investments Commission (ASIC) v Hellicar (2012) 247 CLR 345; [2012] HCA 17 Australian Securities and Investments Commission (ASIC) v Macdonald (No 11) [2009] NSWSC 287 Australian Broadcasting Corporation v Chau Chak Wing (2019) 271 FCR 632; [2019] FCAFC 125 Australian Competition and Consumer Commission v Advanced Medical Institute Pty Ltd (No 2) (2005) 147 FCR 235; [2005] FCA 1357 Australian Competition and Consumer Commission v Amcor Printing Papers Group Pty Ltd (2000) 169 ALR 344; [2000] FCA 17 Averkin v Insurance Australia (2016) 92 NSWLR 68; [2016] NSWCA 122 Barnes v Addy (1874) LR 9 Ch App 244 Bellevarde Constructions Pty Ltd v L'Officina by Vincenzo Australia Pty Ltd [2022] NSWCA 246 Bosanac v Commissioner of Taxation (2022) 275 CLR 37; [2022] HCA 34 Black v S Freedman & Co (1910) 12 CLR 105; [1910] HCA 58 BP Australia Ltd v Brown (2003) 58 NSWLR 322; [2003] NSWCA 216 Bradshaw v McEwans Pty Ltd (1951) 217 ALR 1 Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 Crowe-Maxwell v Frost (2016) 91 NSWLR 414; [2016] NSWCA 46 David William Pallas & Julie Ann Pallas as trustees for the Pallas Family Superannuation Fund v Lendlease Corporation Ltd [2024] NSWCA 83 Doyle's Farm Produce Pty Ltd v Murray Darling Basin Authority (No 2) (2021) 106 NSWLR 41; [2021] NSWCA 246 Fair Work Ombudsman v South Jin Pty Ltd [2015] FCA 1456 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Fortress Credit Corp (Australia) II Pty Ltd v Fletcher (2015) 254 CLR 489; [2015] HCA 10 Giorgianni v The Queen (1985) 156 CLR 473; [1985] HCA 29 Great Investments Ltd v Warner (2016) 243 FCR 516; [2016] FCAFC 85 Greater Pacific Investments Pty Ltd (in liq) v Australian National Industries Ltd (1996) 39 NSWLR 143 Grimaldi v Chameleon Mining (No 2); Chameleon Mining NL v Murchison Metals Ltd (2012) 200 FCR 296; [2012] FCAFC 6 Hasler v Singtel Optus Pty Ltd; Curtis v Singtel Optus Pty Ltd; Singtel Optus Pty Ltd v Almad Pty Ltd (2014) 87 NSWLR 609; [2014] NSWCA 266 In the matter of Sunnya Pty Ltd [2024] NSWSC 403 Insurance Commissioner v Joyce (1948) 77 CLR 39; [1948] HCA 17 John Fairfax Publications Pty Ltd v Doe (1995) 37 NSWLR 81 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 Kalls Enterprises Pty Ltd (in liq) v Baloglow [2007] NSWCA 191 Kizon v Palmer (1997) 72 FCR 409; [1997] FCA 21 Krakowski v Eurolynx Properties Ltd (1995) 183 CLR 563; [1995] HCA 68 Lifeplan Australia Friendly Society Ltd v Woff [2016] FCA 248 Ling v Pang [2023] NSWCA 112 Macks v Blacklaw & Shadforth Pty Ltd (1997) 147 ALR 281 at 306; [1997] FCA 667 Maguire v Makaronis (1997) 188 CLR 449; [1997] HCA 23 Morley v Australian Securities and Investments Commission (ASIC) [2010] NSWCA 331 Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd (1992) 110 ALR 449; [1992] HCA 66 Nicholson v Morgan (No 3) [2013] WASC 110 O'Halloran v RT Thomas & Family Pty Ltd (1998) 45 NSWLR 262 Pereira v Director of Public Prosecutions (DPP) (1988) 82 ALR 217; [1988] HCA 57 Pittmore Pty Ltd v Chan; Chan v Tan (2020) 104 NSWLR 62; [2020] NSWCA 344 Potts v Miller (1940) 40 SR (NSW) 35 Productivity Partners Pty Ltd v Australian Competition and Consumer Commission [2024] HCA 27 Qantas Airways Ltd v Gama (2008) 167 FCR 537; [2008] FCAFC 69 Quince v Varga [2009] 1 Qd R 359; [2008] QCA 376 R v Chalabian (No 2) [2022] NSWSC 63 R v Cranston (No 6) [2020] NSWSC 1777 R v Hausman [2021] NSWDC 846 Re Emanuel (No 14) Pty Ltd (in liq); Macks v Blacklaw & Shadforth Pty Ltd (1997) 147 ALR 28; [1997] FCA 667 Saaed v Minister for Immigration and Citizenship (2010) 241 CLR 252; [2010] HCA 23 Seltsam Pty Ltd v McGuiness (2000) 49 NSWLR 262; [2000] NSWCA 29 Sydney Recycling Park Pty Ltd v Cardinal Group Pty Ltd (in liq) (2016) 93 NSWLR 251; [2016] NSWCA 329 Sydney Seaplanes Pty Ltd v Page (2021) 106 NSWLR 1; [2021] NSWCA 204 Sze Tu v Lowe (2014) 89 NSWLR 317; [2014] NSWCA 462 The Commissioner of Australian Federal Police v Cranston (No 15) [2021] NSWSC 1332 Thomas v State of New South Wales (2008) 74 NSWLR 34; [2008] NSWCA 316 Tozer Kemsley & Millbourn (Australasia) Pty Ltd v Collier's Interstate Transport Service Ltd (1956) 94 CLR 384; [1956] HCA 6 Wood v Beves (1997) 92 A Crim R 209; (1997) 137 FLR 436 Yorke v Lucas (1985) 158 CLR 661; [1985] HCA 65 Zirilli v The King [2023] VSCA 64 Category: Principal judgment Parties: Plutus Payroll Australia Pty Ltd (in liq) (First Plaintiff) Timothy Bryce Norman in his capacity as joint and several liquidator of Plutus Payroll Australia Pty Ltd (Second Plaintiff) Salvatore Algeri in his capacity as joint and several liquidator of Plutus Payroll Australia Pty Ltd (Third Plaintiff) Glen Saikali (First Defendant) Michael Teplitsky (Second Defendant) Tepcorp Holdings Pty Ltd (Third Defendant) Tepcorp Investments Pty Ltd (Fourth Defendant) Representation: Counsel: J Stoljar SC w B Ng (Plaintiffs) FM Douglas KC w JK Carter (Second to Fourth Defendants)