In the matter of Wan Ze Property Development (Aust) Pty Limited (in liquidation) [2013] NSWSC 189

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Wan Ze Property Development (Aust) Pty Limited (in liquidation) [2013] NSWSC 189 Hearing dates: 10 December, 14 and 15 February 2013 Decision date: 13 March 2013 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Originating Process and Interlocutory Application dated 2 October 2012 dismissed. Catchwords: CORPORATIONS - Application for leave under s 471B Corporations Act 2001 (Cth) to bring proceedings against company in liquidation - Application for proceedings to set aside judgment as procured by fraud or by conduct in bad faith by plaintiffs- Court's jurisdiction to set aside judgment procured by fraud - Whether solid foundation for the allegation of fraud at the time the leave application is brought - Whether failure to present to the Court vital evidence - Whether application to set aside earlier judgment requires newly discovered facts - Whether non-disclosed matters 'probably affected the result' of the earlier proceedings - Whether serious question to be tried that the judgment should be set aside as not obtained in good faith - Whether other relevant discretionary considerations apply to grant of leave. Legislation Cited: Corporations Act 2001 (Cth) ss 233, 237, 443E, 471B, 1321 Civil Procedure Act 2005 (NSW) ss 56, 61 Uniform Civil Procedure Rules 2005 (NSW) rr 12.7(2), 13.1, 13.4, 33.5, 36.15(1) Supreme Court (Corporations) Rules 1999 (NSW) rr 2.13, 2.13(1) Cases Cited: - Altinova Nominees Pty Ltd v Leveraged Capital Pty Ltd (recs and mgrs apptd) (in liq) (No 2) [2009] FCA 42 - Armstrong v Strain [1952] 1 KB 232 - Baden Delvaux and Lecuit v Societe Generale [1992] 4 All ER 161 - Birch v Birch [1902] P 130 - Black v S Freedman & Co [1910] HCA 58; (1910) 12 CLR 105 - Cabassi v Vila (1940) 64 CLR 130 - Cassegrain v Gerard Cassegrain & Co Pty Ltd (in liq) [2012] NSWCA 435 - Chahwan v Euphoric Pty Ltd [2008] NSWCA 52 - Council of the City of Greater Wollongong Corporation v Cowan (1955) 93 CLR 435 - DJL v Central Authority [2000] HCA 17; (2000) 201 CLR 226 - D'Orta-Ekenaike v Victorian Legal Aid [2005] HCA 12; (2005) 223 CLR 1 - Eighth SRJ Pty Ltd v Merity (1997) 7 BPR 15,189 - Ex parte Walker (1982) 6 ACLR 423 - Farley (Aust) Pty Ltd v JR Alexander & Sons (Qld) Pty Ltd [1946] HCA 29; (1946) 75 CLR 487 - Ford Excavations Pty Ltd v Do Carmo [1981] 2 NSWLR 253 - Franich v Swannell (1993) 10 WAR 459 - Gerard Cassegrain & Co Pty Ltd v Cassegrain [2010] NSWSC 91 - Hip Foong Hong v H Neotia & Company [1918] AC 888 - Igloo Homes Pty Ltd v Sammut Constructions Pty Ltd [2005] NSWCA 280 - Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Markets Ltd [2003] NSWSC 307; (2003) 45 ACSR 224 - Jonesco v Beard [1930] 2 AC 298 - La Trobe Wholesale Finance Pty Ltd v Silkwax Pty Ltd t/as Acval Turner Valuers (in liq) [2011] FCA 1102 - Lawrence v Brighton Hall Securities Pty Ltd (in liq) [2009] FCA 1425 - Lazarus Estates v Beasley [1956] 1 QB 702 - Maher v Honeysett & Maher Electrical Contractors Pty Ltd [2005] NSWSC 859 - McDonald v McDonald (1965) 113 CLR 529 - McHarg v Woods Radio Pty Ltd [1948] VLR 496 - Monroe Schneider Associates (Inc) & Anor v No 1 Raberem Pty Ltd (No 2) (1992) 37 FCR 234; (1992) 109 ALR 137 - Najjar v Alfayhaa Cheese Pty Ltd (in liq) [2011] NSWSC 791 - Ogilvie-Grant v East (1983) 1 ACLC 742 - Owens Bank Ltd v Bracco [1992] 2 AC 443; [1992] 2 WLR 621 - Patch v Ward (1867) LR 8 Ch App 203 - Perpetual Trustees Australia Ltd v Heperu Pty Ltd (No 2) [2009] NSWCA 387; 78 NSWLR 190 - Price v Stone [1964] VR 106 - Re Gladstone Pacific Nickel Ltd [2011] NSWSC 1235; (2011) 86 ACSR 432; (1983) 1 ACLC 742 - Re Gordon Grant and Grant Pty Ltd (in liq) (1982) 6 ACLR 727 - Re Gordon Grant and Grant Pty Ltd [1983] 2 Qd R 314; (1983) 7 ACLR 669 - Re HIH Casualty and General Insurance Ltd [2006] NSWSC 6 - Re Pan Pharmaceuticals Ltd; Selim v McGrath [2004] NSWSC 129; (2004) ACSR 681 - Skinner v Jeogla Pty Ltd [2001] NSWCA 15; 37 ACSR 106 - Swaby v Lift Capital Partners Pty Ltd [2009] FCA 749; (2009) 72 ACSR 627 - Swansson v RA Pratt Properties Pty Ltd [2002] NSWSC 583; (2002) 42 ACSR 313 - SZFE v Minister for Immigration [2007] HCA 35; (2007) 232 CLR 189 - Teoh v Hunters Hill Council (No 5) [2012] NSWCA 75 - Vagrand Pty Ltd (in liq) v Fielding (1993) 41 FCR 550 - Wentworth v Rogers (No 5) (1986) 6 NSWLR 534 - Zinc Corporation Pty Ltd v Pasminco Australia Ltd (subject to a deed of company arrangement) [2004] NSWSC 339; (2004) 49 ACSR 129 Texts Cited: - Spencer Bower and Handley, Res Judicata, 4th ed (2009) Category: Principal judgment Parties: Ke Qin Ren (First Plaintiff) Pei Xu (Second Plaintiff) Yi Cheng Jiang (Third Plaintiff) Gloconnect Pty Limited (Fourth Plaintiff) Wan Ze Property Development (Aust) Pty Limited (in liquidation) (First Defendant) Hong Jiang (Second Defendant) Yong An Xie (Third Defendant) Representation: Counsel: F.M. Douglas QC/M.R. Ellicott (Plaintiffs) D.C. Eardley (First Defendant) D.A. Smallbone (Second and Third Defendants) Solicitors: James Lee & Co (Plaintiffs) Downeys Lawyers (First Defendant) Austin Haworth Lexon (Second and Third Defendants) File Number(s): 12/304559