Chidiac v Bhatt, Vaidya and Rosybarb Pty Ltd [2014] NSWSC 1253

Supreme Court New South Wales

Medium Neutral Citation: Chidiac v Bhatt, Vaidya and Rosybarb Pty Ltd [2014] NSWSC 1253 Hearing dates: 1 - 3 and 24 - 25 July 2014 Decision date: 12 September 2014 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Parties to be heard as to form of orders for rectification of share register and register of directors and for repayment of amounts charged to credit card, as to amount of damages recoverable against first defendant and as to costs. Catchwords: CORPORATIONS - membership, rights and remedies - application for rectification of share register under Corporations Act 2001 (Cth) s 175 - whether purported transfers of ordinary shares in company was invalid - whether plaintiff was validly removed as director.

CONTRACT - existence of contract - whether plaintiff and first defendant entered into oral contract in respect of transfer of shares and vehicle for payments to third party - breach - whether established that first defendant breached contract.

RESTITUTION - money lent - where first defendant acknowledges that relevant monies constituted a loan - whether established that first defendant has repaid relevant amounts to discharge debt liability.

DAMAGES - where plaintiff is party to contract conferring benefit to third party - where breach of contract in respect of non-delivery of vehicle established - quantification - whether plaintiff can recover substantive damages - whether plaintiff has suffered loss or damage arising from breach - where plaintiff claims damages quantified in amount of payments made in performance of contract - where first defendant has partly performed contract - whether total failure of consideration provided by first defendant established. Legislation Cited: - Corporations Act 2001 (Cth) ss 175, 180, 198E, 201F, 201G, 201H, 1071B, 1274B(2) - Civil Procedure Act 2005 (NSW) s 98 - Uniform Civil Procedure Rules 2005 (NSW) r 42 Cases Cited: - Armagas Ltd v Mundogas SA [1985] 1 Ll R 1 - Baltic Shipping Co v Dillon [1993] HCA 4; (1993) 176 CLR 344 - Bell v Burton (1993) 12 ACSR 325 - Camden v McKenzie [2007] QCA 136; [2008] 1 Qd R 39 - Celermajer Holdings Pty Ltd v Kopas [2011] NSWSC 40 - Coulls v Bagot's Executor & Trustee Co Ltd [1967] HCA 3; (1967) 119 CLR 460 - Craig v Silverbrook [2013] NSWSC 1687 - Foxeden Pty Ltd v IOOF Building Society Ltd [2003] VSC 356 - Grant v John Grant & Sons Pty Ltd [1950] HCA 54; (1950) 82 CLR 1 - Haines v Bendall [1991] HCA 15; (1991) 172 CLR 60 - Hospital Products Ltd v United States Surgical Corporation [1984] HCA 64; (1984) 156 CLR 41 - John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd [2010] HCA 19; (2010) 241 CLR 1 - Macquarie Developments Pty Ltd v Forrester [2005] NSWSC 674 - Mercedes Holdings Pty Ltd v Waters (No 3) [2011] FCA 236 - Peninsula Gold Pty Ltd v Sunbeam Victa Holdings Ltd (1996) 20 ACSR 553 - Re Mogul Stud Pty Ltd [2012] NSWSC 1639 - Rosebanner Pty Ltd v Energy Australia [2009] NSWSC 43; (2009) 223 FLR 460 - Societe d'Avances Commerciales (Societe Anonyme Egyptienne) v Merchants' Marine Insurance Co (The "Palitana") [1924] 20 LI L Rep 140 - State of New South Wales v Hunt [2014] NSWCA 47 - Trident General Insurance Co Ltd v McNiece Bros Pty Ltd [1988] HCA 44; (1988) 165 CLR 107 - Wilson v Darling Island Stevedoring & Lighterage Co Ltd [1956] HCA 8; (1956) 95 CLR 43 - Winterton Constructions Pty Ltd v Hambros Australia Ltd (1991) 101 ALR 363 - VPlus Holdings Pty Ltd v Bank of Western Australia Ltd [2012] NSWSC 1327; (2012) 91 ACSR 545 - Young v Queensland Trustees Ltd [1956] HCA 51; (1956) 99 CLR 560 Texts Cited: - Carter on Contract - K Mason, JW Carter & GJ Tolhurst, Mason & Carter's Restitution Law in Australia (2nd ed 2008, LexisNexis Butterworths) Category: Principal judgment Parties: Joseph Chidiac (Plaintiff) Prashant Bhatt (First Defendant) Gayatri Vaidya (Second Defendant) Rosybarb Pty Ltd (Third Defendant) Representation: Counsel: J P Rose (Plaintiff) P Bhatt (in person) (First Defendant) G Vaidya (in person) (Second Defendant) Solicitors: Stevens Cottee Lawyers (Plaintiff) P Bhatt (in person) (First Defendant) G Vaidya (in person) (Second Defendant) File Number(s): 2013/292266