In the matter of Sundara Pty Limited & Ors [2015] NSWSC 1694

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Sundara Pty Limited & Ors [2015] NSWSC 1694 Hearing dates: 6-8 October 2015 Decision date: 13 November 2015 Jurisdiction: Equity - Corporations List Before: Black J Decision: Application for leave should be dismissed in each proceeding. Mr James should pay the Rabobank Parties' and ROI's costs of the applications, as agreed or as assessed. Catchwords: CORPORATIONS – membership, rights and remedies – derivative action – application for grant of leave by shareholder to bring proceedings in name of companies in Court's inherent jurisdiction and under Corporations Act 2001 (Cth) s 237 – whether company will bring proceedings – whether Corporations Act 2001 (Cth) s 237 applies to a company in receivership – whether applicant acting in good faith in bringing proceedings – whether in the best interests of companies that applicant be granted leave – whether proposed proceedings involved serious questions to be tried – indemnity. Legislation Cited: - Aboriginal Land Rights Act 1983 (NSW) s 40(2) - Civil Procedure Act 2005 (NSW) s 91 - Corporations Act 2001 (Cth) pt 2F.1A ss 236, 237, 237(2), 237(3), 1335 - Evidence Act 1995 (NSW) s 136 - Farm Debt Mediation Act 1994 (NSW) ss 3, 5, 5(1), 6, 7, 7(4), 8, 8(1), 9, 10 - Local Government Act 1993 (NSW) s 45 - Real Property Act 1900 (NSW) s 42, 42(3) - Real Property & Conveyancing Legislation Amendment Act 2009 (NSW) sch 3 - Supreme Court Act 1986 (Vic) s 49 - Transfer of Land Act 1958 (Vic) - Water Management Act 2000 (NSW) Cases Cited: - Aliprandi v Griffith Vintners Pty Ltd (in liq) (1991) 6 ACSR 250 - Australian Cherry Exports Ltd v Commonwealth Bank of Australia (1996) 39 NSWLR 337 - Bendigo and Adelaide Bank v McMahon [2013] NSWSC 628 - Blakeney v Blakeney [2015] WASC 73 - Breskvar v Wall (1971) 126 CLR 376 - Cadima Express Pty Ltd (in liq) v Deputy - Commissioner of Taxation (1999) 157 FLR 424; 33 ACSR 527 - Carpenter v Pioneer Park Pty Ltd [2008] NSWSC 551; (2008) 71 NSWLR 577 - Chahwan v Euphoric Pty Ltd (trading as Clay & Michel) [2008] NSWCA 52; (2008) 245 ALR 780 - Champion Mortgage Services Pty Ltd v Craigie [2006] NSWSC 869 - City of Canada Bay Council v Bonaccorso Pty Ltd [2007] NSWCA 351 - Constantinidis v Equititrust Ltd [2010] NSWSC 299 - Cooper v Myrtace Consulting Pty Ltd [2014] FCA 480 - Craigie v Champion Mortgage Services Pty Ltd [2007] NSWCA 15 - Electricity Trust of South Australia v O'Leary (1986) 42 SASR 26 - Fitzpatrick v Cheal [2010] NSWSC 717 - Gerard Cassegrain & Co Pty Ltd v Cassegrain [2010] NSWSC 91 - Gerard Cassegrain & Co Pty Ltd v Cassegrain (2013) 87 NSWLR 284 - Goozee v Graphic World Group Holdings Pty Ltd [2002] NSWSC 640; (2002) 42 ACSR 534 - Hawkesbury Development Co Ltd v Landmark Finance Pty Ltd [1969] 2 NSWR 782; (1969) 92 WN (NSW) 199 - Hoath v Connect Internet Services Pty Ltd [2006] NSWSC 158; (2006) 229 ALR 566 - Horvath v Commonwealth Bank of Australia [1999] 1 VR 643 - Kogarah Municipal Council v Golden Paradise Corporation [2005] NSWCA 230 - Koompahtoo Local Aboriginal Land Council v KLALC Property Investment Pty Ltd & Ors [2008] NSWCA 6 - Lawloan Mortgages Pty Ltd v Young [2008] NSWSC 1180 - Lawloan Mortgages Pty Ltd v Hancock [2001] NSWSC 607 - Liberty Funding Pty Ltd v Ivosevich [2002] NSWSC 140 - Maher v Honeysett & Maher Electrical Contractors Pty Ltd [2005] NSWSC 859 - Mathews Capital Partners Pty Limited v Coal of Queensland Holdings Pty Limited [2012] NSWSC 462 - MG Corrosion Consultants Pty Ltd v Vinciguerra [2011] FCAFC 31; (2011) 82 ACSR 367 - Michalakas v Powell [2014] SASCFC 132 - Oates v Consolidated Capital Services Pty Ltd [2009] NSWCA 183; (2009) 76 NSWLR 69 - Oswal v Burrup Fertilisers Pty Ltd (recs & mgrs apptd) [2013] FCAFC 9; (2013) 295 ALR 708 - Power v Ekstein [2010] NSWSC 137; (2010) 77 ACSR 302 - Ragless v IPA Holdings Pty Ltd (in liquidation) [2008] SASC 90 - Re CGH Engineering Pty Ltd [2014] NSWSC 1132 - Re Colorado Products Pty Ltd (in prov liq) [2014] NSWSC 64; (2014) 97 ACSR 581 - Re Featherston Resources Ltd; Tetley v Weston [2014] NSWSC 1139; (2014) 101 ACSR 394 - Re Fishinthenet Investments Pty Ltd and Coastal Waters Seafood Pty Ltd [2014] NSWSC 260 - Re Gladstone Pacific Nickel Ltd [2011] NSWSC 1235; (2011) 86 ACSR 432 - Re Staway Pty Ltd (in liquidation) (receivers and managers appointed) [2013] NSWSC 819 - Re Sundara Pty Ltd (Recs and Mgrs Apptd) (in Liq) [2015] NSWSC 1443 - Riva NSW Pty Ltd v Key Nominees Pty Ltd [2013] NSWSC 1952 - Roxo v Normandie Farm (Dairy) Pty Ltd [2012] NSWSC 765 - Scarel Pty Ltd v City Loan & Credit Corporation Pty Ltd (No 1) (1987) 6 ACLC 213 - Story v Advance Bank Australia Ltd (1993) 31 NSWLR 722 - Swansson v RA Pratt Properties Pty Ltd [2002] NSWSC 583; (2002) 42 ACSR 313 - Telecom Vanuatu Ltd v Optus Networks Pty Ltd [2008] NSWSC 1209 - Varga v Commonwealth Bank of Australia (1997) NSW ConvR 55-797 - Vinciguerra v MG Corrosion Consultants Pty Ltd [2010] FCA 763; (2010) 79 ACSR 293 - Waller v Hargraves Secured Investments Ltd [2012] HCA 4; (2012) 245 CLR 311 Texts Cited: - S Hepburn, "Interpretive Strategies in the Overriding Legislation Exception to Indefeasibility" (2009) 21(2) Bond Law Review 86 Category: Procedural and other rulings Parties: 2014/71424 David Anthony James (Applicant) Rabobank Australia Limited (First Respondent) Neil Robert Cussen and Vaughan Neil Strawbridge (in their capacity as receivers and managers of Sundara Pty Ltd (recs & mgrs apptd) (in liq) (Second Respondents) ROI Lands & Hedging Pty Ltd (Third Respondent) Philip Hosking and David Hirst (in their capacity as liquidators of Sundara Pty Ltd (recs & mgrs apptd) (in liq) (Fourth Respondents)