SOLOMON v CORPORATE AFFAIRS COMMISSION [1989] NSWCA 188
NSW Caselaw
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SOLOMON v CORPORATE AFFAIRS COMMISSION
SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL
KIRBY P
4 September 1989
[1989] NSWCA 188
RECEIVERS — order for disposition of assets of company in liquidation — claim
for order that funds be made available to support appeal — claim lodged in Court
of Appeal — held: Claim was properly brought, if at all, in the Equity Division not
the Court of Appeal and accordingly motion remitted to that Division. Supreme
Court Act 1970, s44, s46, 51(2)(b).
ORDERS 1. The notice of motion is remitted to the Equity Division; and 2. The first
claimant to pay the opponents' costs in the Court of Appeal.
Before the Court is a notice of motion by which the first claimant, Eddie
Solomon, seeks an order of this Court that the second opponent, Alexander
Robert McKay McIntosh, a receiver, pay the claimant's legal expenses for the
prosecution of an appeal which the claimant has brought to the Court. The motion
seeks an order that the receiver pay the expenses out of the funds which the
receiver is holding pursuant to orders made in the Supreme Court appointing Mr
McIntosh receiver of the assets of the relevant company. Further orders are
sought as well as orders as to costs. I am dealing with this matter pursuant to s46
of the Supreme Court Act 1970.
Earlier proceedings on an appeal
The matter comes before the Court against the background of other
proceedings which had previously been before the Court. The last occasion was
before Clarke JA, sitting alone, on 24 July 1989. The earlier proceedings concern
an appeal from orders made by Young J in the Equity Division of the Supreme
Court. Two grounds of opposition were raised on 24 July 1986 to the claimant's
appeal. The first was that the first claimant had not complied with an order of
Young J that notice be first given to the Attorney General before any fresh steps
were taken by him in the litigation. It was contended that no notice had been
given of the notice of appeal before it was filed. Secondly, it was alleged that the
notice of appeal was, on its face, embarrassing and should be struck out by the
Court. A motion for the striking out of the appeal was filed by the Corporate
Affairs Commission as claimant. Those proceedings took some little time in
argument before Clarke JA. Ultimately, orders were made by his Honour
standing the proceedings over to be heard on 11 September 1989. They will
therefore come into this Court's list next week. It is not necessary for me now to
deal with them.
The only matter which is relevant in the previous proceedings is the order of
Young J concerning the obligation of the first claimant to give notice to the
Attorney General before commencing any proceedings.
The first claimant has informed the Court that notice of the present notice of
motion was given to the Attorney General on 28 August 1989. An affidavit was
placed before the Court in which some evidence was provided that the notice was
given to officers of the opponents and of the Attorney General. No point has been
2 UNREPORTED JUDGMENTS
raised concerning compliance with the obligation, at least for the purposes that
the matter is now before me and the order which I propose to make. I do not,
therefore, have to determine the issue.
Relief against receiver - for Equity Division
As Clarke JA pointed out to the first claimant on the last occasion, relief
against the receiver and orders of the Court relating to the disposition by the
receiver of the assets of the company are not matters which ordinarily come first
before the Court of Appeal. They are matters which are dealt with in the Equity
Division of the Supreme Court. So should be the relief which the claimant now
seeks. It is therefore appropriate to terminate those proceedings in this Court. In
doing so I have not overlooked the provisions of s44 of the Supreme Court Act.
But no reason has been shown why the ordinary Divisional arrangements of the
Supreme Court should not be followed.
The question arises as to whether the motion should simply be struck out as a
misconceived invocation of the jurisdiction of the Court of Appeal. The
opponents agreed that it would be more appropriate, economical and saving of
time and costs for an order to be made under s51(2)(b) of the Supreme Court Act
remitting the matter to the Equity Division where, if anywhere, it can be dealt
with. When the matter comes before the Equity Division more detailed
consideration can be given by the Division to whether there is any legal basis for
the first claimant's claim and whether there has indeed been compliance by the
first claimant with the order made by Young J relating to notice before
commencing further proceedings. Nothing I have said should be taken to
foreclose the further consideration and determination of those issues.
For completeness I should say that the second opponent, the wife of the
claimant, was not present in court to support the notice of motion although it
purports to be issued in her name. This may have been as a result of the fact that
on a previous occasion she indicated, in another context, that she wished the
claimant to speak for her. She was then excused by Clarke JA. It may be she has
misunderstood the order made by Clarke JA relieving her of attendance in those
proceedings to relieve her of her attendance in respect of this motion. If she
wishes to support the motion she should be present on the occasion that the
matter is listed in the Equity Division.
None of the companies which are named as claimants in the motion are here
today. Mr Solomon sought leave to mention the matter on behalf of the
companies. However, the authority of the Court stands against his having such
leave or being granted the right to appear for the companies in these
circumstances. See Bay Marine Pty Ltd v Clayton County Properties Pty Ltd
(1986) 8 NSWLR 104. In view of the course which I have taken of referring the
motion to the Equity Division it is not necessary for me to deal in any way with
that matter. No specific relief on the ground of the non-appearance of the
companies has been sought by the opponents.
The orders therefore made are:
1. That the notice of motion be remitted to the Equity Division;
2. That the first claimant, having incorrectly commenced the motion in this
Court, and notwithstanding the exchange on the last occasion with
Clarke JA pointing to that error, should pay the costs of the opponents
of and incidental to the motion.