In the matter of Vangory Holdings Pty Limited [2015] NSWSC 1809

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Vangory Holdings Pty Limited [2015] NSWSC 1809 Hearing dates: 1, 2, 9 September 2015 Date of orders: 18 September 2015 Decision date: 18 September 2015 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: Originating process dismissed; first defendant's interlocutory process dismissed. Catchwords: CORPORATIONS – winding up – winding up in insolvency – failure to comply with creditor's statutory demand – presumption of insolvency – whether plaintiff entitled to rely on presumption of insolvency – (CTH) Corporations Act 2001, s 459Q – requirement that affidavit verifies debt and complies with rules – specificity of affidavit – whether s 459E affidavit cures defect in s 459Q affidavit – whether defect occasions substantial injustice – role of s 459Q(3) – where doubt as to existence of debt – where s 459Q(3) affidavit could not have reasonably and properly been made – standing of plaintiff to bring proceedings – whether plaintiff is creditor of defendant – where plaintiff is judgment creditor of defendant – where judgment debt arose after filing of originating process – requirement that leave be given for contingent creditors to bring proceedings – no proof of actual insolvency.

CORPORATIONS – winding up – just and equitable ground – standing as contingent creditor – where standing arose after originating process filed – where evidence of corporate governance delinquencies – where company not presently trading – where party seeking winding up has no real interest in internal management.

CORPORATIONS – winding up – failure to comply with creditor's statutory demand – Court's discretion to dismiss proceedings – abuse of process – no evidence of impropriety or collateral purpose in bringing proceedings – deliberate misuse of statutory demand procedure where no debt could conceivably be owing – RH Mortgage Corporation Ltd v Kerry Ann Properties Pty Ltd [2011] NSWSC 298 – inapplicability of principle to mistaken belief in existence of debt. Legislation Cited: (CTH) Corporations Act 2001, s 459A, s 459C, s 459E, s 459E(3), s 459G, s 459J(1), s 459P, s 459P(1), s459P(2), s 459Q, s 459Q(3), s 459S, s 462(2), s 462(4), s 465C, s 467A Cases Cited: Australian Securities and Investments Commission v ABC Funds Managers Ltd [2001] VSC 383; (2001) 39 ACSR 443 Australian Securities and Investments Commission v ActiveSuper Pty Ltd (No 2) [2013] FCA 234 Bibby Financial Services v Wolf Industries [2004] NSWSC 134; (2004) 49 ACSR 45 Braams Group Pty Ltd v Miric [2002] NSWCA 417; (2002) 44 ACSR 124 Cedars Concrete Services v Maatouk [2006] NSWSC 884 Deputy Commissioner of Taxation v National Skin Institute (Aust) Pty Limited [2012] FCAFC 2; (2012) 200 FCR 146, 285 ALR 102 In the matter of DJG Securities Pty Ltd [2013] NSWSC 588 In the matter of Vangory Holdings Pty Ltd [2015] NSWSC 546 Leveraged Capital Pty Limited v Modena Imports Pty Ltd [2009] NSWSC 509 Main Camp v Australian Rural [2002] NSWSC 219; (2002) 20 ACLC 726 Radiancy (Sales) Pty Limited v Bimat Pty Limited [2007] NSWSC 962; (2007) 25 ACLC 1,216 RH Mortgage Corporation Ltd v Kerry Ann Properties Pty Ltd [2011] NSWSC 298 TS Recoveries Pty Limited and Sea-Slip Marinas Pty Limited [2007] NSWSC 1074; (2007) 25 ACLC 1,371 Category: Principal judgment Parties: First Debenture Limited ACN 105 577 017 (plaintiff) Vangory Holdings Pty Ltd ACN 121 502 190 (defendant) Representation: Counsel: R Glasson (plaintiff) T Orlizki (solicitor) (defendant)