MGM Bailey Enterprises v Austin Australia [2002] NSWSC 259

Reported Decision : (2002) ATPR 41-875 (2002) 20 ACLC 765

New South Wales Supreme Court

CITATION : MGM Bailey Enterprises v Austin Australia [2002] NSWSC 259 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 1948/02 HEARING DATE(S) : 26 March 2002 (with further written submissions on 27 March 2002) JUDGMENT DATE : 3 April 2002

PARTIES : MGM Bailey Enterprises Pty Ltd (P/R) Austin Australia Pty Ltd (D/A) JUDGMENT OF : Austin J

COUNSEL : M Dicker (P/R) W G Muddle (D/A) SOLICITORS : Purcell Lancione Cureton (P/R) Colin Biggers & Paisley (D/A) CATCHWORDS : CORPORATIONS - creditor's statutory demand - debtor company relies on creditor's incorrect representation as to last day for application to set aside the demand - estoppel not available - TRADE AND COMMERCE - misleading conduct - whether solicitor's letter to another solicitor expressing opinion about time limit was misleading - whether stay of winding up should be ordered under s 87 of Trade Practices Act - whether other equitable grounds support stay of winding up Corporations Act 2001 (Cth) ss 105, 459E, 459G, 459H, 459P LEGISLATION CITED : Fair Trading Act 1987 (NSW) ss 42, 72 Trade Practices Act 1974 (Cth) ss 52, 87 Brolrik Pty Ltd v Sambah Holdings Pty Ltd [2001] NSWSC 1171 David Grant & Co Pty Ltd v Westpac Banking Corporation (1995) 184 CLR 265 Hill v Tooth & Co Ltd (1998) ATPR 41-649 Johnson Tiles Pty Ltd v Esso Australia Ltd [2000] FCA 1673 Pacific Rim Developments Pty Ltd v Anketell [1999] NSWSC 304 CASES CITED : Redglove Holdings Pty Ltd v GNE & Associates Pty Ltd (2001) NSWSC 867 Redgrave v Hurd (1881) 20 ChD 1 Roach v Bickle (1915) 20 CLR 663 State Bank of New South Wales v Tela Pty Ltd [2002] NSWSC 20 Sutton v A J Thompson Pty Ltd (1987) 73 ALR 233 Sweetman v Bradfield Management Services Pty Ltd (1994) ATPR 41-290 Trade Practices Commission v Optus Communications Pty Ltd (1996) 34 IPR 176 DECISION : Application for stay of winding up dismissed