In the matter of Camelia Grove Operations Pty Ltd, Public Lifestyle Management Pty Ltd and 146 Henderson Street Pty Ltd in its personal capacity and in its capacity as the Trustee for 146 Henderson Street Unit Trust (No 2) [2024] NSWSC 1383

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Camelia Grove Operations Pty Ltd, Public Lifestyle Management Pty Ltd and 146 Henderson Street Pty Ltd in its personal capacity and in its capacity as the Trustee for 146 Henderson Street Unit Trust (No 2) [2024] NSWSC 1383 Hearing dates: 29 October 2024 Date of orders: 29 October 2024 Decision date: 29 October 2024 Jurisdiction: Equity - Corporations List Before: Nixon J Decision: (1) The Court DECLARES that, during the administration of the Second and Third Plaintiffs, s 440B of the Corporations Act 2001 (Cth) precludes the Second Defendant from enforcing its ownership interest against the Second and Third Plaintiffs such that the Second Defendant cannot take any steps to restrain the Second and Third Plaintiffs from: (a) using and accessing the terrace house at 152 Henderson Street, Alexandria, NSW 2015 ("the Terrace"); or (b) taking possession of the Terrace or otherwise recovering it. (2) The Court NOTES the undertaking by Mr Vaughan Strawbridge and Mr Joseph Ronald Hansell as joint and several receivers and managers of the Second and Third Plaintiffs to pay, during the period of the administration of the Second and Third Plaintiffs, an amount of $1500 per week to the Defendants for use of the parts of the Terrace that are used in the business of the Camelia Grove Hotel. (3) The Court ORDERS that the Defendants be restrained, until the administrations of the Second and Third Plaintiffs conclude, from directly or indirectly impeding the access of the Plaintiffs to the Terrace, taking possession of the Terrace, or otherwise recovering the Terrace. (4) The Defendants pay the Plaintiffs' costs of the proceeding. Catchwords: CORPORATIONS – Where Defendants took possession of property used by companies that are in voluntary administration without consent of voluntary administrators or leave of the Court – Whether s 440B applied – Whether leave should be granted to take possession of the property – Whether declaration and injunction should be made Legislation Cited: Corporations Act 2001 (Cth), ss 435A, 440B Cases Cited: Australian Securities and Investments Commission v Sweeney [2001] NSWSC 114 Australian Securities and Investments Commission v Marco (No 6) [2020] FCA 1781 Australian Securities and Investments Commission v Ostrava Equities Pty Ltd [2016] FCA 1064 Australian Securities and Investments Commission v Pegasus Leveraged Options Group Pty Ltd [2002] NSWSC 310 Blacktown City Council v Macarthur Telecommunications Pty Ltd [2003] NSWSC 883 Canberra International Airport Pty Ltd v Ansett Australia Pty Ltd [2002] FCA 329 CMC (Australia) Pty Ltd v Sarantinos [2013] NSWSC 873 In the matter of Camelia Grove Operations Pty Ltd, Public Lifestyle Management Pty Ltd and 146 Henderson Street Pty Ltd in its personal capacity and in its capacity as the trustee for 146 Henderson Street Unit Trust (all receivers and managers appointed) (all administrators appointed) [2024] NSWSC 1342 In the matter of Ikon Group Limited [2015] NSWSC 980 Re Java 452 Pty Ltd (admin apptd); ex parte Permanent Trustee Australia Ltd v Stout [1999] VSC 252 Category: Principal judgment Parties: Duncan Clubb and Andrew Sallway in their Capacities as Joint and Several Administrators of Camelia Grove Operations Pty Ltd, Public Lifestyle Management Pty Ltd and 146 Henderson Street Pty Ltd in its personal capacity and in its capacity as the Trustee for 146 Henderson Street Unit Trust (All Receivers and Managers Appointed) (All Administrators Appointed) (First Plaintiff) Camelia Grove Operations Pty Ltd (Receivers and Managers Appointed) (Administrators Appointed) (Second Plaintiff) Public Lifestyle Management Pty Ltd (Third Plaintiff) 146 Henderson Street Pty Ltd in its personal capacity and in its capacity as the Trustee for 146 Henderson Street Unit Trust (Fourth Plaintiff) Richard Albarran and Kathleen Vouris in their Capacities as Joint and Several Receivers and Managers of 152 Henderson Street Pty Ltd (First Defendant) 152 Henderson Street Pty Ltd (Receivers and Managers Appointed) (Second Defendant) Representation: Counsel: S Scott (Plaintiffs) H Somerville w B Dziubinski (Defendants) E Beechey (Interested Party)