In the matter of Affinity Capital Pty Ltd - Indrasith v Ku & ors [2011] NSWSC 1158

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Affinity Capital Pty Ltd - Indrasith v Ku & ors [2011] NSWSC 1158 Hearing dates: 23 September 2011 Decision date: 27 September 2011 Jurisdiction: Equity Division - Corporations List Before: Ward J Decision: Examination summonses and orders for production issued in relation to fourth and fifth defendants set aside. Summonses and orders for production in relation to first and third defendants limited in scope. Catchwords: CORPORATIONS - application to set aside examination summonses and orders for production - whether creditor conducting examinations potentially to advance own interests amounts to an improper purpose - in the alternative, application to limit the scope of examinations - HELD - improper purpose not established - on review of material, fourth and fifth defendants unlikely to have information as to examinable affairs of company within scope of the permissible examinations - set aside those examination summonses and orders for production only - scope of examinations that remain on foot limited to matters relevant to potential claims by company or liquidator against the directors or shadow directors - orders for production limited to specific categories Legislation Cited: Administrative Decisions (Judicial Review) Act 1977 (Cth) Companies (NSW) Code Corporations Act 2001 (Cth) Cases Cited: Alternative Business Solutions Deputy Commissioner of Taxation v Alternative Business Solutions (Aust) Pty Ltd (in admin) [2006] FCA 400 Australian Securities and Investments Commission v Karl Suleman Enterprises Pty Ltd (in liq) [2003] NSWSC 163; (2003) 44 ACSR 694 Australian Securities and Investments Commission v IPLUS Risk Management Pty Ltd [2006] FCA 583 Australian Securities and Investments Commission v McDougall [2006] FCA 427; (2006) 57 ACSR 175 Bell Group Ltd (in liq) v Westpac Banking Corporation [1998] FCA 849; (1998) 28 ACSR 343 Boys v Quigley (as receiver and manager of Geneva Finance Limited) [2002] WASCA 99; (2002) 41 ACSR 499 Cairnsmore Holdings Pty Ltd v Bearsden Holdings Pty Ltd [2007] FCA 1822 Clifton v Robinson (1853) 16 Beav 355; 51 ER 816 Deputy Commissioner of Taxation v Portinex Pty Ltd [2000] NSWSC 99; (2000) 156 FLR 453 Douglas-Brown (Official liquidator of Woomera Holdings Pty Ltd) v Furzer (1994) 13 ACSR 184 Fetzer v Irving [2005] SASC 53; (2005) 52 ACSR 354 Gerah Imports Pty Ltd v Duke Group Ltd (in liq) (1993) 61 SASR 557 Hamilton v Oades [1989] HCA 21; (1989) 166 CLR 486 Hong Kong Bank of Australia Limited & Ors v Murphy & Ors (1992) 28 NSWLR 512 In the matter of Idoport Pty Ltd (in liq) (recs apptd) [2011] NSWSC 322 Lawteal Pty Ltd v Ofo [2005] NSWSC 984 Meteyard & Ors v Love & Ors [2005] NSWCA 444 Morton v Joynson [1999] FCA 530; (1999) 31 ACSR 76 New World Alliance Pty Ltd; Sycotex Pty Ltd v Baseler (1994) 122 ALR 531 New Zealand Steel (Aust) Pty Ltd v Burton (1994) 13 ACSR 610 O 'Brien v Wily [2009] NSWSC 946; (2009) 74 ASCR 145 Parbery Re Trio Capital Ltd [2010] NSWSC 775 Queensland Building Services Authority v Australian Securities Commission (1997) 15 ACLC 398 Re BPTC Ltd (1992) 7 ACSR 291; 10 ACLC 271 Re Clutha Ltd [2000] NSWSC 647; (2000) 34 ACSR 685 Re GPI Leisure Corporation Ltd (in liq) (1994) 15 ACSR 282 Re Hugh J Roberts Pty Ltd (In liq) [1970] 2 NSWR 582 Re Interchase Corporation Ltd (In Liq) 20 ACSR 600 Re Laurie Cottier Productions Pty Ltd (in liq) (1992) 9 ACSR 513 Re Mendarma Pty Ltd (in liq) [2006] NSWSC 1306; (2006) 24 ACLC 1611 Re New Tel Limited (In Liquidation); Evans v Wainter Pty Ltd (2005) 221 ALR 331; 54 ACSR 284 Re North Brazilian Sugar Factories (1887) 37 Ch D 83 Re Southern Equities Corporation Ltd (in liq); Bond & Caboche v England (1997) 25 ACSR 394 Re Southland Coal Pty Ltd (recs and mgrs apptd) (in liq) [2006] NSWSC 184; (2006) 58 ACSR 113 Rochfort v John Fairfax & Sons Ltd [1972] 1 NSWLR 16 Sandurst Trustees Ltd v Harvey [2004] SASC 157; (2004) 88 SASR 519 Southern Cross Petroleum Sales (SA) Pty Ltd (in liq) v Hirsch (1998) 70 SASR 527 The Bell Group Ltd (in liq) v Westpac Banking Corporation (No 9) [2008] WASC 239; (2008) 70 ACSR 1 Tomko v Palasty (No 2) [2007] NSWCA 369; (2007) 71 NSWLR 61 Town & Country Sport Resorts (Holdings) Pty Ltd v Partnership Pacific Ltd (1998) 20 FCR 540 Von Lieven v Stewart; Kemish v Godfrey (1990) 21 NSWLR 52; 3 ACSR 118 Worthley v England; Re Excel Finance Corporation Ltd (1994) 14 ACSR 407 Young (as representative for the Australian partnership known as Accenture) v Sherman [2002] NSWCA 281; (2002) 170 FLR 86 Texts Cited: Ford's Principles of Corporations Law (online edn) McPherson's Law of Company Liquidation (online edn) Parker, 'Liquidator's Examinations' (1993) 10 Australian Bar Review 25 Category: Principal judgment Parties: Leslie Separatnam Indrasith (Plaintiff) Daniel Ka Ming Ku (First Defendant) Darren Garwai Chek (Second Defendant) Adrian Ming-Chi Chen (Third Defendant) Michael Chin (Fourth Defendant) Andrew Mah (Fifth Defendant) Representation: Counsel C Carter (Plaintiff) Solicitors Phillip Roberts (Plaintiff) Sachs Gerace Lawyers (First, Third, Fourth and Fifth Defendants) No appearance for Second Defendant File Number(s): 11/170710