Hypec Electronics Pty Limited (in liq) v Mead & Ors [2003] NSWSC 934

New South Wales Supreme Court

CITATION : Hypec Electronics Pty Limited (in liq) v Mead & Ors [2003] NSWSC 934 HEARING DATE(S) : 16/9/03-18/9/03 & 22/9/03 JUDGMENT DATE : 3 November 2003 JURISDICTION: Equity JUDGMENT OF : Campbell J DECISION : Liquidator estopped, and precluded under principle in Ex parte James, from recovering four items of corporate property, until further order. Land in name of company associated with company directors held on trust for company in liquidation.

CATCHWORDS : CORPORATIONS - winding up - principle in Ex parte James - In re Condon (1874) LR 9 Ch App 609 - circumstances of application - circumstances when appropriate to direct liquidator not to collect corporate asset - how principle in Ex parte James fits with liquidator's duty under Corporations Act 2001 - ESTOPPEL - whether liquidator estopped from collecting corporate assets - appropriate remedy to meet "minimum equity" test - TRUSTS - resulting and constructive trusts - factual decision about whether purchase price of asset in name of Company "A" controlled by directors of Company "B" had been provided by Company "B" Bankruptcy Act 1869 Bankruptcy Act 1924 Companies Act 1938 Companies (NSW) Code Corporations Act 2001 (Cth) LEGISLATION CITED : Corporations Law Gaming Act 1835 Income Tax Assessment Act 1936 Long Service Leave Act 1955 Real Property Act 1900 Stamp Duties Act 1920 ACCC v George Weston Foods Limited (2003) 198 ALR 592; [2003] FCA 601 Re Allied Glass Manufacturers Ltd (1936) 36 SR 409 SR (NSW) In Re Associated Dominions Assurance Society Pty Ltd and the Life Insurance Act (1962) 109 CLR 516 Re Ayoub; Ex parte Silvia (1983) 67 FLR 144 In Re Banister; Broad v Munton (1879) 12 Ch D 131 In Re Berkeley Applegate (Investment Consultants) Ltd (in liquidation) Re; Harris v Conway [1989] 1 Ch 32 BL & GY International Co Ltd v Hypec Electronics Pty Ltd; Colin Anthony Mead v David Patrick Watson & Ors [2001] NSWSC 705; (2001) 164 FLR 268 BL & GY International Co Limited v Hypec Electronics Pty Ltd (in liquidation) & Ors [2001] NSWSC 841 BL & GY International Co Ltd v Hypec Electronics Pty Ltd & 2 Ors [2002] NSWSC 38 BL & GY International Co Ltd v Hypec Electronics Pty Ltd & 2 Ors [2002] NSWSC 575 Black Uhlans Incorporated v New South Wales Crime Commission [2002] NSWSC 1060 In Re Brown; Dixon v Brown (1886) 32 Ch D 597 Cadima Express Pty Ltd (in liq) v DCT (1999) 157 FLR 424; [1999] NSWSC 1143; 33 ACSR 527 Cadorange Pty Ltd (in liq) v Tanga Holdings Pty Ltd (1990) 20 NSWLR 26 Re Application of Central Commodities Services Pty Ltd [1984] 1 NSWLR 25 Re Chemical Plastics Ltd (in liquidation) [1959] VR 570; [1959] ALR 1080 In Re Clark (a bankrupt); Ex parte the Trustee of the property of the bankrupt v Texaco Ltd [1975] 1 All ER 453; [1975] 1 WLR 559 In Re Clifton Place Garage Ltd [1970] 1 Ch 477 The Commonwealth of Australia v Verwayen (1990) 170 CLR 394 13 Coromandel Place Pty Ltd v CL Custodians Pty Ltd (in liq) (1999) 30 ACSR 377 In Re Craig & Sons; Ex Parte Hinchcliffe [1916] 2 KB 497 Depela Pty Ltd (in liq) v Lynch (1996) 19 ACSR 751 Dering v Earl of Winchelsea (1787) 1 Cox 318; 29 ER 1184 Downs Distributing Company Pty Ltd v Associated Blue Star Stores Pty Ltd (in liquidation) (1948) 76 CLR 463 Re Ebner; Ebner v Official Trustee in Bankruptcy [2003] FCA 73; (2003) 196 ALR 533 Else v Else (1871) LR 13 Eq 196 Firth v Centrelink [2002] NSWSC 564; (2002) 55 NSWLR 451 Re G A Listing & Maintenance Pty Ltd (1994) 15 ACSR 308 Re G B Nathan & Co Pty Ltd (in liq) (1991) 24 NSWLR 674; (1991) 5 ACSR 673 Giumelli v Giumelli (1999) 196 CLR 101 Government of India v Taylor [1955] AC 491 In Re Hallett's Estate; Knatchbull v Hallett (1880) 13 ChD 696 Hartogen Energy Ltd (in liq) v Australian Gas Light Co (1992) 36 FCR 557; (1992) 109 ALR 177; (1992) 8 ACSR 277 CASES CITED : Ex parte James; In re Condon (1874) LR 9 Ch App 609 Mobil Oil Australia Ltd v Wellcome International Pty Ltd (1998) 81 FCR 475 Re Modern Terrazzo Ltd (in liquidation) [1998] 1 NZLR 160 Nationwide News Pty Ltd v Samalot Enterprises Pty Ltd (No.2) (1986) 5 NSWLR 227 The Official Assignee of the Estate of Turnbull v Goldstein (1921) 29 CLR 377 Re Paddington Town Hall Centre Ltd (in liquidation) (1979) 41 FLR 239 R v Rugari [2001] NSWCCA 64; (2001) 122 A Crim R 1 R v Tower Hamlets London Borough Council; Ex parte Chetnik Developments Ltd [1988] 1 AC 858 Re Redman; Ex parte Official Receiver (1948) 16 ABC 90 In Re Regent Finance and Guarantee Corporation Ltd (1930) WN 84 In Re Rhodes; Ex parte Rhodes [1899] 2 QB 347 In Re Roberts; Official Receiver v Lincoln Investments Ltd (1976) 26 FLR 330 Re Sabri; Ex parte Brien v Sabri (1997) 137 FLR 165 Scott v Handley [1999] FCA 404; (1999) 58 ALD 373 Scranton's Trustee v Pearse [1922] 2 Ch 87 Re Securitibank Ltd (in liquidation) [1978] 1 NZLR 97 Shirlaw v Taylor (1991) 31 FCR 222 Ex parte Simmonds; In Re Carnac (1885) 16 QBD 308 Sinclair v Brougham [1914] AC 398 Star v Silvia (No.1) (1994) 12 ACLC 600 In Re Steane's (Bournemouth) Ltd [1950] 1 All ER 21 Re Suco Gold Pty Ltd (in liq) (1983) 33 SASR 99; (1983) 7 ACLR 873 Sutters v Briggs [1922] 1 AC 1 In Re T H Knitwear (Wholesale) Ltd [1987] 1 WLR 371 In Re T H Knitwear (Wholesale) Ltd [1988] 1 Ch 275 In Re Thellusson; Ex parte Abdy [1919] 2 KB 735 In Re Trent and Humber Ship-Building Company (1869) LR 8 Eq 94 In re Tyler; Ex parte The Official Receiver [1907] 1 KB 865 Re Universal Distributing Company Limited (in liquidation) (1933) 48 CLR 171 Ex parte Villars; In Re Rogers (1874) LR 9 Ch App 432 Re Walsh; Ex parte Waters [1978] QdR 134 Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387 In Re Wenborn & Co [1905] 1 Ch 413 Re Wigzell; Ex parte Hart [1921] 2 KB 835 Yang v Hypec Electronics Pty Ltd (in liquidation) & 2 Ors [2003] NSWCA 181 Hypec Electronics Pty Limited (in liquidation) - Plaintiff Colin Anthony Mead - First Defendant PARTIES : Lucy Guitar Mead - Second Defendant Mei Chen Yang - Third Defendant Lee Chen-Lien Yang - Fourth Defendant Lamron Pty Limited - Fifth Defendant FILE NUMBER(S) : SC 1268/02; 1933/01 PH Greenwood SC; TJ Norahan - Plaintiff COUNSEL : D Fagan SC; V Bedrossian - First Defendant D Grieve QC; G O'Gorman - Second Defendant K Ma, solicitor - Third, Fourth & Fifth Defendant AR Conolly & Company - Plaintiff SOLICITORS : Etheringtons - First Defendant Lee Gan Solicitors - Second Defendant Ma & Company - Third, Fourth & Fifth Defendant