John Raymond Gibbons & Anor as official liquidators of Deemah Marble & Granite Pty Ltd (in liq) v Deputy Commissioner of Taxation [2003] NSWSC 1126

Reported Decision : (2004) 22 ACLC 81

New South Wales Supreme Court

CITATION : John Raymond Gibbons & Anor as official liquidators of Deemah Marble & Granite Pty Ltd (in liq) v Deputy Commissioner of Taxation [2003] NSWSC 1126 HEARING DATE(S) : 26.11.03 JUDGMENT DATE : 3 December 2003 JURISDICTION: Equity Division JUDGMENT OF : Nicholas J DECISION : See para 39.

CATCHWORDS : INSOLVENCY - CORPORATIONS LAW - COSTS - Whether Plaintiffs entitled to indemnity costs - Whether loss or damage suffered includes costs and interest - Whether director liable to indemnify Deputy Commissioner of Taxation in respect of judgment and costs - Corporations Act ss588FF, 588FGA - HELD - Indemnity costs refused - Respondent liable pursuant to s588FGA(2) to indemnify Defendant in respect of the amount payable to the Plaintiffs including interest and costs, and the Defendant's costs incurred in defending the Plaintiff's claim. Corporations Act 2001 (Cth) ss588FF, 588FGA, 588FGA(1), 588FGA(2), 588FGA(4) LEGISLATION CITED : Income Tax Assessment Act 1936 (Cth) Supreme Court Act 1970 (NSW) s94 Supreme Court Rules 1970 (NSW) Pt22 r2, Pt22 r10, Pt 22 Div 1, Pt 22 Div 2, Pt52A r22, Pt52A r22(4), Pt52A r4 Associated Confectionery (Aust) Ltd v Mineral & Chemical Traders Pty Ltd (1991) 25 NSWLR 349 Browne & Ors v Commissioner of Taxation (1998) 153 ALR 10 Burrows v Knightley & Nationwide News Pty Ltd (1987) 10 NSWLR 651 Deputy Commissioner of Taxation v Clark (2003) 45 ACSR 332 CASES CITED : Hillig v Commissioner of Taxation (2000) 35 ASCR 626 Hobartville Stud Pty Ltd v Union Insurance Co Ltd (1991) 25 NSWLR 358 Multicon Engineering Pty Ltd v Federal Airports Corporation (1996) 138 ALR 425 Southern Cross Interiors Pty Ltd (In Liq) v Deputy Commissioner of Taxation (NSWSC, 13 November 2001, Unreported) Tickell v Trifleska Pty Ltd (1990) 25 NSWLR 353 John Raymond Gibbons & Anor as official liquidators of Deemah Marble & Granite Pty Ltd (in liq) - Plaintiffs PARTIES : Deputy Commissioner of Taxation - Defendant Peter John Solomon - Respondent FILE NUMBER(S) : SC 5129/01 C R C Newlinds SC - Plaintiffs COUNSEL : P Rodionoff - Defendant M Cashion SC/C Robinson - Respondent Clayton Utz - Plaintiffs SOLICITORS : Australian Government Solicitor - Defendant Colin Biggers & Paisley - Respondent