RMS Financial Services Pty Limited (In Liquidation) v Mohamad Skaf [2008] NSWDC 63

New South Wales District Court

CITATION: RMS Financial Services Pty Limited (In Liquidation) v Mohamad Skaf [2008] NSWDC 63

HEARING DATE(S): 3/12/07 - 5/12/07, 27/3/08.

JUDGMENT DATE: 15 April 2008

JURISDICTION: Civil

JUDGMENT OF: Rolfe DCJ

DECISION: Verdict and Judgment for the Defendants.

CATCHWORDS: Claim by Company in liquidation for balance of purchase price said to be owing under a contract for sale of land - Defence of set off - Claim by Liquidator that alleged set off based on sham transaction - Preference Claim - Application to amend pleadings on last day of hearing

LEGISLATION CITED: Corporations Act 2001

RMS Financial Services Pty Limited (In Liquidation) (1st Plaintiff) PARTIES: Raymond George Tolcher (2nd Plaintiff) Mohamad Skaf and Raife Skaf (Defendants)

FILE NUMBER(S): 1793/06

COUNSEL: J Johnson (Plaintiffs) R Newton (Defendants)

JUDGMENT

1 The First Plaintiff in these proceedings, RMS Financial Services Pty Limited (In Liquidation), is a company which was wound up on 29 August 2004 by order of the Supreme Court of New South Wales. On that date the Second Plaintiff, Raymond George Tolcher, was appointed official liquidator of the First Plaintiff. From now on, I will refer to the First Plaintiff as the "Company" and the Second Plaintiff as the "Liquidator".

2 Prior to the Company being wound up, on 14 May 2004 it entered into a contract with both defendants for the sale by the Company to the defendants of the property known as 1021-1021A Canterbury Road Lakemba (the "Property") for the price of $1,500,000.

3 As at the date of the contract, the defendants' son, Roy Skaf, also known as Rayed Skaf, was a director of the Company. From now on I will refer to him as either "Skaf" or "the son".