BL & GY International Co. Ltd v Hypec Electronics Pty Ltd; Colin Anthony Mead v David Patrick Watson & Ors. [2001] NSWSC 705

(2001) 19 ACLC 1622 Reported Decision : [2001] NSWSC 705 [2001] ACL Rep 120 NSW 118

New South Wales Supreme Court

CITATION : BL & GY International Co. Ltd v Hypec Electronics Pty Ltd; Colin Anthony Mead v David Patrick Watson & Ors. [2001] NSWSC 705 FILE NUMBER(S) : SC 1933/01; 3832/01 HEARING DATE(S) : 17/08/2001 JUDGMENT DATE : 21 August 2001

BL & GY International Co. Ltd (Plaintiff) Hypec Electronics Pty Ltd (Defendant) PARTIES : Colin Anthony Mead (Plaintiff) David Patrick Watson - Liquidator (Defendant) BL & GY International Co. Ltd (Defendant) JUDGMENT OF : Einstein J

Mr DJ Fagan SC, Mr V Bedrassin (Colin Mead) COUNSEL : Mr SL Bell (BL & GY International Co. Ltd) Ms R Sofroniou (David Patrick Watson - Liquidator) Etheringtons Solicitors (Colin Mead) SOLICITORS : Ian B Mitchell (BL & GY International Co. Ltd) A R Connolly & Co. (David Patrick Watson - Liquidator) CATCHWORDS : Company Law-Winding up-Liquidators-Exceptions to rule in Foss v Harbottle- -Contributories motion to bring a derivative cross action and to be permitted to seek leave to set aside a default judgment and to conduct a derivative defence-Whether action may be brought or continued or defended by a contributory in the name of company if this is in the interests of justice-Whether any such a rule applies to companies in liquidation-Considerations applicable to control by the court of company in liquidation-Contributory authorised to use companies name as co- defendant and as cross claimant. LEGISLATION CITED : Corporations Act 2001 - Sections 236 & 237 Aliprandi v Griffith Vintners Pty Ltd (in liq) (1991) 6 ACSR 250 Biposo Pty Ltd; Condon v Rodgers (No.3) (1995) 17 ACSR 730 Cadima Express Pty Ltd v Deputy Commissioner of Taxation (1999) 33 ACSR 527 Cape Bretton Co v Fenn (1881) 17 ChD 198 Christianos v Aloridge Pty Limited (1995) 131 ALR 129 Deangrove Pty Ltd (Receivers and Managers Appointed) v Commonwealth Bank of Australia (2001) 37 ACSR 465 Direct Acceptance Investments Pty Ltd v Blackwell (1995) 17 ACSR 89 Direct Acceptance Investments Pty Ltd v Blackwell (No. 2) (1995) 13 ACLC 1251 Evans v Bartlam [1937] AC 473 Foss v Harbottle (1843) 67 ER 189 Garden Mews-St Leonards Pty Ltd v Butler Pollnow Pty Ltd - (No.2) (1984) 9 ACLR 91 Garden Mews-St Leonards Pty Limited v Butler Pollnow Pty Ltd (1984) 9 ACLR 117 CASES CITED : Kelaw Pty Ltd v Catco Developments Pty Ltd (1989) 15 NSWLR 587 Re Laverton Nickel NL (1979) 3 ACLR 945 Re Lloyd (1879) 12 ChD 447 Lloyd-Owen v Bull (1936) 4 DLR 273 Magarditch v Australia & New Zealand Banking Group Ltd (1999) 32 ACSR 367 Mibor Investments Pty Limited v Commonwealth Bank of Australia (1993) 11 ACSR 362 Partnership Pacific Pty Limited v Aliprandi (1990) 4 ACSR 51 Phillips Oysters v National Australia Bank (Federal Court, unreported, 13 Nov 1992) Pollnow v Garden Mews-St Leonards Pty Limited (1984) 9 ACLR 82 Russell v Westpac Banking Corporation (1994) 13 ACSR 5 Scarel Pty Ltd v City Loan & Credit Corporation Pty Ltd (1988) 17 FCR 344 Vagrand Pty Ltd (in liq) v Fielding (1993) 41 FCR 550 Re Van Loun Ex parte Pattullo [1907] 1 KB 155 Wenham v General Credits Ltd [unreported, 16 December 1988-Butterworths Unreported Judgments-BC 8801203] DECISION : Application for leave to bring derivative action to be granted - short minutes to be brought in.