In the matter of Le Meilleur Pty Ltd (subject to Deed of Company Arrangement); Le Meilleur Pty Ltd (subject to Deed of Company Arrangement) & Ors v Jin Heung Mutual Savings Bank Co Ltd & Anor [2011] NSWSC 1115

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Le Meilleur Pty Ltd (subject to Deed of Company Arrangement); Le Meilleur Pty Ltd (subject to Deed of Company Arrangement) & Ors v Jin Heung Mutual Savings Bank Co Ltd & Anor [2011] NSWSC 1115 Hearing dates: 20, 21, 27 & 28 April, 3 May, 17 June 2011 Decision date: 15 September 2011 Jurisdiction: Equity Division - Corporations List Before: Ward J Decision: Dismiss plaintiffs' originating process. Declarations in relation to Deed of Company Arrangement executed on 18 August 2010. Orders for termination of Deed of Company Arrangement and declaration that company entered into creditors winding up by reason of s 446A on 19 August 2010. Catchwords: CORPORATIONS - whether deed of company arrangement was in conformity with resolution passed at the second meeting of creditors and hence a binding instrument within the meaning of s 444B(6) of the Corporations Act 2001 (Cth) - whether second defendant voted by proxy for deed in circumstances where vote was carried "on the voices" and second defendant's proxy held multiple proxies - whether, if the deed is a binding instrument and second defendant is bound by it, the deed or part thereof should be terminated or second defendant granted relief against the operation of some or all of its terms - whether first and second defendants should be compelled pursuant to s 442C to deliver discharges of mortgages so contracts for sale entered into by deed administrators can be completed - HELD - deed is not a binding instrument within the meaning of s 444B(6) as it does not accord with the deed proposal the subject of the resolution on which creditors voted - second defendant not bound by deed since the manner in which a vote was taken at the meeting precludes finding that the holder of its proxy validly voted in favour of deed - accordingly, administration terminated by reason of s 446A and caused creditors voluntary winding up to arise - CIVIL PROCEDURE - application after close of submissions to amend plaintiffs' originating process to seek declaratory or other relief in relation to a claimed equitable charge or lien over land where Anshun raised - HELD - application dismissed Legislation Cited: Civil Procedure Act 2005 (NSW) Conveyancing and Law of Property Act 1881 (UK) Corporations Act 2001 (Cth) Evidence Act 1995 (NSW) Insolvency Act 1986 (UK) Land Tax Management Act 1956 (NSW) Law of Property Act 1925 (UK) Local Government Act 1993 (NSW) Payroll Tax Act 2007 (NSW) Real Property Act 1900 (NSW) Supreme Court Rules 1970 (NSW) Trade Practices Act 1974 (Cth) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: ANZ Banking Group Ltd v Bangadilly Pastoral Co Ltd (1978) 139 CLR 195 Aon Risk Services Australia Ltd v Australian National University [2009] HCA 27; (2009) 258 ALR 14 Australasian Memory Pty Ltd v Brien [2000] HCA 40; (2000) 200 CLR 270 Baxter v British Airways plc (1988) 82 ALR 298 Bidald Consulting Pty Ltd v Miles Special Builders Pty Ltd [2005] NSWSC 1235; (2005) 226 ALR 510 Brash Holdings Ltd (admin apptd) v Katile Pty Ltd [1996] 1 VR 24; (1994) 13 ACSR 504 Bridgecorp Finance Ltd v Corner [2005] NSWSC 225 Brooke v No 5 Lorac Avenue Pty Ltd (1994) 14 ACSR 717 Browne v Dunn (1893) 6 R 67 HL Champerslife Pty Ltd v Manojlovski & anor [2010] NSWCA 33; (2010) 75 NSWLR 245 City of Swan v Lehman Bros Australia Ltd [2009] FCAFC 130; (2009) 179 FCR 243 Cleary v Australian Co-operative Foods Ltd (Nos 2 and 3) [1999] NSWSC 991; (1999) 32 ACSR 701 Commercial & General Acceptance Corporation Ltd v Nixon [1981] HCA 70; (1981) 152 CLR 491 Coopers Brewery Ltd v Panfida Foods Ltd (1992) 26 NSWLR 738 Debis Financial Services (Aust) Pty Ltd v Allied Bellambi Collieries Pty Ltd [1999] NSWSC 935; (1999) 17 ACLC 1636 Deputy Commissioner of Taxation v Comcorp Australia (1996) 21 ACSR 590 Dovuro Pty Ltd v Wilkins [2003] HCA 51; (2003) 215 CLR 317 Eastern Express Pty Ltd v General Newspapers Pty Ltd (1992) 35 FCR 43 Ernest v Loma Gold Mines Ltd [1897] 1 Ch 1 Essex Securities Pty Ltd v Lunt [2006] WASC 58 Film Bars Pty Limited v Pacific Film Laboratories Pty Limited (1979) 1 BPR 9251 Forsyth v Blundell (1973) 129 CLR 477 G and M v Armellin [2008] ACTSC 68; (2008) 219 FLR 359 Graeme Webb Investments Pty Ltd v St George Partnership Banking Ltd [2001] NSWCA 93; (2001) 38 ACSR 282 Greek Orthodox Community of Oakleigh and District Inc v Pizzey Noble Pty Ltd (admin apptd) (1997) 23 ACSR 274 H Clark (Doncaster) Ltd v Wilkinson [1965] Ch 694; 1 All ER 934 Hagenvale Pty Ltd v Depela Pty Ltd & Serrada Holdings Pty Ltd (1995) 17 ACSR 139 Hamilton and Fiorentino as Administrators of Kisoro Pty Ltd v National Australia Bank Ltd (1996) 66 FCR 12 Idoport Pty Limited & anor v National Australia Bank Ltd & 8 ors (15) [2000] NSWSC 1215 Jeans v Commonwealth Bank of Australia Ltd [2003] FCAFC 309; (2003) 204 ALR 327 Jiriwa Pty Ltd v Primary Industry Bank of Australia Ltd [2000] NSWSC 1094 Jones v Dunkel (1959) 101 CLR 298 Khouri v National Australia Bank Ltd [2007] NSWSC 987 Lehman Bros Holdings Inc v City of Swan [2010] HCA 11; (2010) 240 CLR 509 Mailman v Challenge Bank Ltd (1991) 5 BPR 11721 Matrix Film Investment One Pty Ltd & ors v Alameda Films LLC and Warner Bros Entertainment and Pictures Inc [2007] NSWSC 523 McFadden v Snow (1952) 69 WN (NSW) 8 McVeigh v Linen House Pty Ltd & Rugs Galore Australia Pty Ltd [2000] VSCA 4; (2001) 1 VR 31 Meadow Springs Fairway Resort Ltd (in liq) (ACN 084 358 592) v Balanced Securities Ltd (ACN 083 512 685) (No 2) [2008] FCA 471; (2008) 65 ACSR 563 Mentha v GE Capital Ltd (1997) 27 ACSR 696 National Commercial Banking Corporation of Australia Ltd v Solanowski (1984) NSW ConvR 55-194 New Beach Apartments Pty Ltd v Epic Hotels [2007] NSWSC 474 No 5 Lorac Avenue Pty Ltd v Brooke (1995) 16 ACSR 247 Nominal Defendant v Gabriel [2007] NSWCA 52; (2007) 71 NSWLR 150 Palk v Mortgage Services Funding Plc [1993] Ch 330; 2 All ER 481 Pioneer Park Pty Limited (in liquidation) v ANZ Banking Group Limited & ors [2005] NSWSC 832 Pitcher v Langford (1991) 23 NSWLR 142 Port of Melbourne Authority v Anshun Pty Limited [1981] HCA 45; (1981) 147 CLR 589 Re Ansett Australia Ltd and Mentha [2001] FCA 1806; (2001) 115 FCR 376 Re ARV Aviation Ltd [1989] BCLC 664 Re Brashs Pty Ltd (1994) 15 ACSR 477 Re Capitol Films Ltd [2010] EWHC 3223 (Ch) Re Euco Ltd (in liq); Forrest Nursery Pty Ltd v Lopez (2006) 233 ALR 422 Re Kruger Engineering Pty Ltd [2006] NSWSC 1063; (2006) 60 ACSR 191 Re Ricon Constructions Pty Ltd (in liq) (1997) 43 NSWLR 174; 26 ACSR 655 Re Vanfox Pty Ltd [1995] 2 Qd R 445; (1994) 13 ACSR 209 Re Vouris; EPromotions Australia Pty Ltd v Relectronic - Remech Pty Ltd (in liq) [2003] NSWSC 702; (2003) 47 ACSR 155 Re Universal Distributing Co Ltd (1933) 48 CLR 171 Rhone-Poulenc Agrochimie SA v UIM Chemical Services Pty Ltd (1985) 10 FCR 567; 75 ALR 601 Rhone-Poulenc Agrochimie SA v UIM Chemical Services Pty Ltd (1986) 12 FCR 477 Ryan v South Sydney Junior Rugby League Club Ltd [1975] 2 NSWLR 660 Sasson & Partners Pty Ltd v Fahevu Pty Ltd [1999] NSWCA 400 SLE Worldwide Australia Pty Ltd v Wyatt Gallagher Bassett Pty Ltd [2005] NSWSC 816 Spendright Pty Ltd v Classfact Pty Ltd [2009] NSWSC 317 State of Queensland v JL Holdings Pty Ltd [1997] HCA 1; (1997) 189 CLR 146 Westpac Banking Corporation Ltd v Kingsland (1991) 26 NSWLR 700 Woolley v Colman (1882) 21 Ch D 169 Texts Cited: Fisher & Lightwood, Law of Mortgage (13th edn) Ford's Principles of Corporations Law (online edn) Heydon, Cross on Evidence (online edn) Odgers, Uniform Evidence Law (7th edn) Ritchie's Uniform Civil Procedure Rules Category: Principal judgment Parties: Le Meilleur Pty Ltd (subject to Deed of Company Arrangement) (First Plaintiff) Kenneth Michael Whittingham (Second Plaintiff) Atle Crowe-Maxwell (Third Plaintiff) Jin Heung Mutual Savings Bank Co Ltd (First Defendant) NH Capital Co Ltd (Second Defendant) Port Stephens Council (Intervening Creditor) Greg Ramsey (Intervening Creditor) Chief Commissioner of State Revenue (Intervening Creditor) Community Association of DP 270021 (Intervening Creditor) Representation: Counsel S Golledge (20,21,27 April, 3 May, 17 June 2011)/P Russell (28 April 2011) (Plaintiffs) (and for Port Stephens Council as intervening creditor 17 June 2011) D Pritchard SC with J King (First Defendant) (and mention for Mr Greg Ramsey as intervening creditor 17 June 2011) No appearance for second defendant A Iluniono (Office of State Revenue as intervening creditor - 17 June 2011) Ms V McWilliam (Community Association as intervening creditor - 17 June 2011) Solicitors Blake Dawson (Plaintiffs) Sojong Lawyers Pty Ltd (First Defendant) Champion Legal (Chief Commissioner of State Revenue)(Intervening Creditor) Gadens Lawyers (Community Association of DP 270021)(Intervening Creditor) File Number(s): 11/033912