Rinfort Pty Limited & Anor v Arianna Holdings Pty Limited [2016] NSWSC 251

Supreme Court New South Wales

Medium Neutral Citation: Rinfort Pty Limited & Anor v Arianna Holdings Pty Limited [2016] NSWSC 251 Hearing dates: 11, 12 and 23 February 2016 Decision date: 16 March 2016 Jurisdiction: Equity - Corporations List Before: Black J Decision: Order that creditor's statutory demand be set aside with costs. Catchwords: CORPORATIONS — Winding up — Application to set aside creditor's statutory demand under ss 459H and 459J of the Corporations Act 2001 (Cth) – where director of creditor was also an alternate director of debtor – whether there was genuine dispute as to existence of debt – whether it is arguable debt was statute barred – whether it is arguable creditor was estopped from enforcing debt – whether demand substantially overstated amount of the debt – whether demand failed to separately describe multiple debts thereby causing substantial injustice – whether there was abuse of process due to real and sensible possibility of conflict of duty and duty in the director of the creditor authorising the demand to be issued.

CORPORATIONS — Membership, rights and remedies — Derivative action — Application for grant of leave by shareholder to bring proceedings in name of company under s 237 of the Corporations Act 2001 (Cth) – where applicant sought leave to act on behalf of company to set aside creditor's statutory demand – where leave was not obtained within the 21 day period for setting aside demand specified in s 459G of the Corporations Act 2001 (Cth) – where applicant was not initially joined as plaintiff in s 237 application – whether leave under s 237 must be obtained in separate proceedings – whether leave under s 237 must be obtained prior to the expiry of the 21 day period under s 459G – whether leave should be granted under s 237. Legislation Cited: - Corporations Act 2001 (Cth) ss 9, 181, 182, 236, 237, 459G, 459H, 459J, 588FF, Pt 5.4 - Corporations Law ss 236, 237, 459A, 459G, 459P, 500 - Judiciary Act 1903 (Cth) s 79 - Limitation Act 1969 (NSW) ss 14, 54 - Supreme Court (Corporations) Rules 1999 (NSW) - Uniform Civil Procedure Rules 2005 (NSW) rr 6.24, 6.28 Cases Cited: - Agricultural Land Management Ltd v Jackson (No 2) [2014] WASC 102; (2014) 98 ACSR 615 - Arcade Badge Embroidery Co Pty Ltd v Deputy Commissioner of Taxation [2005] ACTCA 3; (2005) 157 ACTR 22 - Austar Finance v Campbell [2007] NSWSC 1493; (2007) 215 FLR 464 - Austotel Pty Ltd v Franklins Self-Serve Pty Ltd (1989) 16 NSWLR 582 - Berowra Holdings Pty Ltd v Gordon [2006] HCA 32; (2006) 225 CLR 364 - Boardman v Phipps [1967] 2 AC 46 - Britten-Norman Pty Ltd v Analysis & Technology Australia Pty Ltd [2013] NSWCA 344; (2013) 85 NSWLR 601 - Chan v Zacharia [1984] HCA 36; (1984) 154 CLR 178 - Chidiac v Maatouk [2010] NSWSC 386 - Chippendale Printing Co Pty Ltd v Deputy Commissioner of Taxation (1955) 55 FCR 562 - Condor Asset Management Ltd v Excelsior Eastern Ltd [2005] NSWSC 1139; (2005) 56 ACSR 223 - CP York Holdings Pty Ltd v Food Improvers Pty Ltd [2009] NSWSC 409 - David Grant & Co Pty Ltd v Westpac Banking Corporation [1995] HCA 43; (1995) 184 CLR 265 - Davison v Vickery's Motors Ltd (in liq) [1925] HCA 47; (1925) 37 CLR 1 - Delta Beta Pty Ltd v Vissers (1996) 20 ACSR 583 - Elyard Corporation Pty Ltd v DDB Needham Sydney Pty Ltd (1995) 61 FCR 385 - Emanuele v Australian Securities and Investments Commission [1997] HCA 20; (1997) 188 CLR 114 - Eyota Pty Ltd v Hanave Pty Ltd (1994) 12 ACSR 785 - Federal Commission of Taxation of the Commonwealth of Australia v Sara Lee Household and Body Care (Australia) Pty Ltd [2000] HCA 35; (2000) 201 CLR 520 - Financial Solutions Australasia Pty Ltd v Predella Pty Ltd [2002] WASCA 51; (2002) 26 WAR 306 - First State Computing Pty Ltd v Kyling (1995) 13 ACLC 939 - Fitzpatrick v Cheal [2010] NSWSC 717 - Gerblich v Adplan Pty Ltd [2012] SASCFC 79; (2012) 281 LSJS 175 - Gordon v Tolcher [2006] HCA 62; (2006) 231 CLR 334 - Grant Samuel Corporate Finance Pty Ltd v Fletcher [2015] HCA 8; (2015) 254 CLR 477 - Graywinter Properties Pty Ltd v Gas and Fuel Corporation Superannuation Fund (1996) 70 FCR 452 - Gusdote Pty Ltd v Ashley [2011] FCA 250; (2011) 82 ACSR 469 - Haller v Ayre [2005] QCA 224; [2005] 2 Qd R 410 - Home Corporation Projects (No 100) v Australian Home Mortgage Corp [2001] NSWSC 701 - Hopetoun Kembla Investments Pty Ltd v JPR Legal Pty Ltd [2011] NSWSC 1343; (2011) 87 ACSR 1 - Hospital Products Ltd v United States Surgical Corp [1984] HCA 64; (1984) 156 CLR 41 - Indigo Financial Money Pty Ltd v Moustrides [2010] SASC 355; (2010) 81 ACSR 249 - Infratel Networks Pty Ltd v Gundry's Telco & Rigging Pty Ltd [2012] NSWCA 365; (2012) 92 ACSR 27 - J Huang v D Wang [2015] NSWSC 510 - Jennings v Credit Corp Australia Pty Ltd [2000] NSWSC 210; (2000) 48 NSWLR 709 - Maher v Honeysett & Maher Electrical Contractors Pty Ltd [2005] NSWSC 859 - Manildra Laboratories Pty Ltd v Campbell [2009] NSWSC 987 - Matthews v SPI Electricity Pty Ltd [2011] VSC 167; (2011) 34 VR 560 - McEvoy v The Body Corporate for No 9 Port Douglas Road [2013] QCA 168 - Meehan v Glazier Holdings Pty Ltd [2005] NSWCA 24; (2005) 53 ACSR 229 - MG Corrosion Consultants Pty Ltd v Vinciguerra [2011] FCAFC 31; (2011) 82 ACSR 367 - MNWA Pty Ltd v Deputy Commissioner of Taxation (No 2) [2015] FCA 1128; (2015) 109 ACSR 265 - NA Investments Holdings Pty Ltd v Perpetual Nominees Ltd [2010] NSWCA 210; (2010) 79 ACSR 544 - Nece Pty Ltd v Ritek Incorporation [1997] FCA 504; (1997) 24 ACSR 38 - Oates v Consolidated Capital Services Ltd [2009] NSWCA 183; (2009) 76 NSWLR 69 - Ogilvie v Adams [1981] VR 1041 - Ox Operations Pty Ltd v Land Mark Property Developments (Vic) Pty Ltd (in liq) [2007] FCA 1221 - Pilmer v Duke Group Ltd (in liq) [2001] HCA 31; (2001) 207 CLR 165 - Portrait Express (Sales) Pty Ltd v Kodak (Australasia) Pty Ltd [1996] NSWSC 199; (1996) 20 ACSR 746 - Power v Ekstein [2010] NSWSC 137; (2010) 77 ACSR 302 - Pravenkav Group Pty Ltd v Diploma Construction (WA) Pty Ltd (No 3) [2014] WASCA 132; (2014) 46 WAR 483 - Raja v Darul-Iman (WA) Inc (No 2) [2011] WASCA 251 - Re Akierman Holdings Pty Limited [2015] NSWSC 1395 - Re Brighter Directions Pty Ltd [2010] VSC 287 - Re Colorado Products Pty Ltd (in prov liq) [2014] NSWSC 789 - Re Diveva Pty Ltd [2015] NSWSC 509 - 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 Jackaroo Agencies Pty Ltd [2005] QSC 333; (2006) 1 Qd R 332 - Re RUS Holdings (Australia) Pty Ltd [2012] NSWSC 1075 - Re Tesrol Holdings Pty Ltd [2013] NSWSC 1534; (2013) 97 ACSR 9 - Re UGL Process Solutions Pty Ltd [2012] NSWSC 1256 - Re Wollongong Coal Ltd [2015] NSWSC 1680 - Repforce International Pty Ltd v Master Lease Properties Pty Ltd [2003] NSWSC 970 - RTP Holdings Pty Ltd v Roberts [2000] SASC 386; (2000) 36 ACSR 170 - Savage Property Enterprises Pty Ltd v Bianchino & Associates [2011] NSWSC 140 - SBA Music Pty Ltd v Hall (No 3) [2015] FCA 1079 - Silovi v Barbaro (1988) 13 NSWLR 466 - South Johnstone Mill Ltd v Dennis and Scales [2007] FCA 1448; (2007) 163 FCR 343 - Spencer Constructions Pty Ltd v G & M Aldridge Pty Ltd [1997] FCA 681; (1997) 76 FCR 452 - Sundarjee Bros (Aust) Pty Ltd v Sundarjee Bros (HK) Pty Ltd (in liq) [2004] NSWSC 1158; (2004) 52 ACSR 532 - Swansson v RA Pratt Properties Pty Ltd [2002] NSWSC 583; (2002) 42 ACSR 313 - Topfelt Pty Ltd v State Bank of New South Wales Ltd (1993) 12 ACSR 381 - TR Administration Pty Ltd v Frank Marchetti & Sons Pty Ltd [2008] VSCA 70; (2008) 66 ACSR 67 - TS Recoveries Pty Ltd v Sea-Slip Marinas (Aust) Pty Ltd [2007] NSWSC 1074; (2007) 25 ACLC 1371 - Vinciguerra v MG Corrosion Consultants Pty Ltd [2010] FCA 763; (2010) 79 ACSR 293 - Weinstock v Beck [2013] HCA 14; (2013) 251 CLR 396 - Young v Queensland Trustees Ltd [1956] HCA 51; (1956) 99 CLR 560 Texts Cited: - Sir Frederick Jordan, Chapters in Equity in New South Wales (6th ed, 1947) Category: Principal judgment Parties: Rinfort Pty Limited (First Plaintiff) Dana Mekler (Second Plaintiff) Arianna Holdings Pty Limited (Defendant) Representation: Counsel: F Assaf (Plaintiffs) J T Svehla (Defendant)