French v Chapple [2001] NSWSC 574

New South Wales Supreme Court

CITATION : French v Chapple [2001] NSWSC 574 CURRENT JURISDICTION: Equity Division FILE NUMBER(S) : SC 4576 of 2000 HEARING DATE(S) : 30 April 2001, 1, 2, 3 and 4 May, 2001 JUDGMENT DATE : 10 July 2001

Andrew French (First Plaintiff/First Cross-Defendant)) Escalator Handrail Advertising International Pty Limited (Second Plaintiff/Second Cross-Defendant) PARTIES : Brett Anthony Chapple (First Defendant/First Cross-Claimant) Rogert James Poignand (Second Defendant/Second Cross-Claimant) EHA Media Pty Limited (Third Defendant) JUDGMENT OF : Windeyer J at 1

COUNSEL : Mr R Harper with him Mr J Gillespie (Plaintiff/Cross Defendant)) Mr W Marler with him Ms C Morris (Defendants/Cross-Claimants) SOLICITORS : The Law Partnership (Plaintiff/Cross Defendant) Greg Judd & Associates (Defendant/Cross- Claimants) CATCHWORDS : MORTGAGES - deed of charge made to secure loan agreement between company and director - charge over assets of company - director issues demand - company defaults - mortgagee appoints receiver - whether demand validly issued - MORTGAGES - deed of charge - mortgagee purports to appoint "controller" - whether appointment valid - COMPANIES - director's duties - director also a creditor with deed of charge over assets of company - director issues demand and appoints receiver - whether breach of director's duties - COMPANIES - receivership - director/creditor appoints "controller" under deed of charge - controller sells asset of company to company controlled by director - whether sale should be set aside Bunbury Foods Pty Ltd v National Bank of Australia Limited (1984) 153 CLR 491 CASES CITED : Equus Financial Services Limited v RMBL Investments Pty Limited (Bryson J, unreported, 21 November 1996) Inglis v Commonwealth Bank of Australia (1972) 126 CLR 161 Project Research Pty Limited v Permanent Trustee of Australia Limited [1995] BPR 11,225; DECISION : See paragraph 31