Supreme Court New South Wales Medium Neutral Citation: Patel v Lal [2011] NSWSC 678 Hearing dates: 29 June 2011 Decision date: 29 June 2011 Jurisdiction: Equity Division Before: Biscoe AJ Decision: Orders to give effect to reasons for judgment as set out at [3]. Catchwords: ORDERS: - to give effect to reasons for judgment. Legislation Cited: Conveyancing Act 1919 s 37A Corporations Act 2001 (Cth) Cases Cited: Patel v Lal [2011] NSWSC 603 Category: Consequential orders Parties: Jenny (also known as Jaswanti) Patel (Plaintiff) Patricia Lal (First Defendant) H Lal & Associates Pty Ltd (Second Defendant) Hasmukh Lal (Third Defendant) Commonwealth Bank of Australia (Fourth Defendant) Representation: Counsel: Jenny (also known as Jaswanti) Patel in person (Plaintiff) Patricia Lal in person (First Defendant) N/A (Second Defendant) Hasmukh Lal in person (Third Defendant) Ms N Bearup (Fourth Defendant) Solicitors: Gadens Lawyers (Fourth Defendant) File Number(s): 2009/00290378 EX TEMPORE Judgment 1I gave judgment in this matter on 22 June 2011 when I upheld a claim that the transfer of certain property was with intent to defraud creditors and was voidable under section 37A of the Conveyancing Act 1919: Patel v Lal [2011] NSWSC 603. The matter is before me today to make orders to give effect to my reasons for judgment. It is now indicated by the fourth defendant, the Commonwealth Bank of Australia, that it proposes to take steps to obtain judgment for possession of the property and to sell it pursuant to its registered mortgage. The bank also indicates that it is thought unlikely that there will be any surplus available to general creditors. If there is no surplus, then these proceedings may have been pointless. 2The plaintiff and the first, third and fourth defendants have reached agreement as to orders 1 to 4 below to give effect to my reasons for judgment. I also propose to make orders 5 and 6. 3By consent of the plaintiff and the first, third and fourth defendants the Court: (1)Declares that the transfer of the property referred to in folio identifier B/412067 and known as 49 O'Neill Street, Brighton Le Sands ( the Property ) from the second defendant to the first defendant is voidable under s 37A of the Conveyancing Act 1919 at the instance of the plaintiff as a person thereby prejudiced. (2)Declares that the first defendant holds the Property: (a)subject to the registered mortgage held by the Commonwealth Bank of Australia ( CBA ) number AE385830C ( Mortgage ); (b)and then on trust for the second defendant. (3)Orders that any surplus proceeds of the sale of the Property after payment of the not exorbitant costs and expenses of the sale and the amounts owing to the CBA pursuant to the Mortgage and the loan agreement between the first defendant and the fourth defendant dated 28 August 2008 be paid to the second defendant, upon the appointment of a liquidator to the second defendant, for the purpose of distributing those proceeds pursuant to the provisions of the Corporations Act 2001 (Cth). (4)Orders that the parties have liberty to apply to the Court on 2 days notice for further orders to give effect to the declarations and orders above. And the Court: (5)Orders that the first, second and third defendants pay the plaintiff's costs of the proceedings. (6)Grants leave nunc pro tunc to the plaintiff to proceed against the second defendant. ********** DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. Decision last updated: 04 July 2011