In the matter of Pioneer Energy Holdings Pty Ltd [2013] NSWSC 1134

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Pioneer Energy Holdings Pty Ltd [2013] NSWSC 1134 Hearing dates: 18 July 2013 Decision date: 19 August 2013 Jurisdiction: Equity Division - Corporations List Before: Bergin CJ in Eq Decision: The total price payable for a transfer of shares under clause 7.6(b)(i) of the Shareholders Agreement is $1. Clause 7.6(b)(i) is a penalty. Catchwords: [CONTRACTS] - where parties in a commercial joint venture project for development of maritime fuel facility - where Shareholders Agreement governs funding of project - where one of the joint venturers in funding default - construction of Shareholders Agreement - whether non-defaulting party entitled to compulsory transfer of all the shares of the defaulting party for $1 - or for $1 per share [PENALTY] - whether compulsory transfer for $1 constitutes a penalty Cases Cited: AMEV-UDC Finance Ltd v Austin (1986) 162 CLR 170 Andrews v Australia and New Zealand Banking Group Limited (2012) 86 ALJR 1002 Commissioner of Public Works v Hills [1906] AC 368 CRA Limited v NZ Goldfields Investments [1989] VR 873 Dimech v Corlett (1858) 12 Moo PC 199; 14 ER 887 Dunlop Pneumatic Tyre Co Limited v New Garage and Motor Co Limited [1915] AC 79 Forestry Commission of New South Wales v Stefanetto (1976) 133 CLR 507 Jobson v Johnson [1989] 1 All ER 621 Mannai Investment Co Ltd v Eagle Star Life Assurance Co Ltd [1997] AC 749 McCann v Switzerland Insurance Australia Limited (2000) 203 CLR 579 Miwa Pty Limited v Siantan Properties Pte Limited (2011) 15 BPR 29,545 Mosaic Oil NL v Angari Pty Ltd (1990) 20 NSWLR 280 Ringrow Pty Ltd v BP Australia Ltd (2003) 203 ALR 281 Ringrow Pty Ltd v BP Australia Pty Ltd (2005) 224 CLR 656 Swartz v Hadid [2013] NSWCA 89 Texts Cited: JW Carter, The Construction of Commercial Contracts (2013 Hart Publishing) JW Carter, Wayne Courtney, Elisabeth Peden, Andrew Stewart and GJ Tolhurst "Contractual Penalties: Resurrecting the Equitable Jurisdiction" (2013) 30 Journal of Contract Law 99 Category: Separate question Parties: Charlie di Francesco (First Plaintiff) Prakesh Seth (Second Plaintiff) Blue Oil Energy Pty Ltd (Third Plaintiff) Blue Diamond (Australia) Pty Ltd (Fourth Plaintiff) Pioneer Energy Holdings Pty Ltd (First Defendant) Chark Hoe Tan (Second Defendant) Peter Ng (Third Defendant) Jeremy Tan (Fourth Defendant) Harjeet (Harry) Singh Ubhi (Fifth Defendant) Morgan Stanley Capital Group Inc (Sixth Defendant) Pioneer Energy Pty Ltd (Seventh Defendant) Representation: Counsel: FM Douglas QC/JC Conde (3rd Plaintiff) IM Jackman SC/D Klineberg (2nd to 6th Defendants) Solicitors: Spinks Eagle Lawyers (3rd Plaintiff) King & Wood Mallesons (2nd to 6th Defendants) File Number(s): 2013/102212