In the matters of MROC Car Wholesalers Pty Ltd and ors [2017] NSWSC 287

Supreme Court New South Wales

Medium Neutral Citation: In the matters of MROC Car Wholesalers Pty Ltd and ors [2017] NSWSC 287 Hearing dates: 15 March 2017 Date of orders: 15 March 2017 Decision date: 15 March 2017 Before: Gleeson JA Decision: (1) Order that until the determination of these proceedings, or earlier further order, the first defendant Andrew John Spring and the second defendant Amanda Young be restrained from: (a) acting or purporting to act; or (b) taking any steps in their role or purported role as joint and several administrators of any of the first, second, third, fourth or fifth plaintiff companies. (2) Order that, without any admissions, until the determination of these proceedings or earlier further order, the third defendant Assaf Financial Services Pty Ltd by itself, its servants or agents be restrained from enforcing or taking any step to enforce against or in respect of any of the five plaintiff companies the security interest purportedly given by those companies pursuant to the agreement dated 12 August 2013. (3) Costs of the interlocutory process filed on 13 March 2017 be reserved. (4) That Part 5.3A of the Corporations Act is to operate in relation to each of MROC Car Wholesalers Pty Limited, MROC Investments Pty Limited, Mozzart Investments Pty Limited, Plush Services Pty Limited and Zegna Holdings Pty Limited in such a way as to treat the appointment by Assaf Financial Services Pty Ltd on 7 March 2017 pursuant to s 436C of the Corporations Act of Andrew John Spring and Amanda Young as voluntary administrators of each of MROC Car Wholesalers Pty Limited, MROC Investments Pty Limited, Mozzart Investments Pty Limited, Plush Services Pty Limited and Zegna Holdings Pty Limited as having no effect pending the determination of these proceedings or earlier further order of the Court, except that this order does not prevent Mr Spring and Ms Young taking the action referred to in order 5 below. (5) Order 4 does not preclude the first and second defendants giving notice to the creditors of the Companies of the adjournment of the first meeting of creditors convened on 17 March 2017 pursuant to s 436E of the Corporations Act to a date to be fixed, subject to outcome of these proceedings. (6) In so far as it may be necessary to do so, pursuant to s 1322(4)(d) of the Corporations Act extend the period for the convening pursuant to s436E of the Corporations Act the first meeting of creditors of the Companies to a date within eight business days after the date of determination of these proceedings. (7) Stand over the proceedings before the Corporations List Judge on 20 March 2017 at 9.45am. Catchwords: PRACTICE AND PROCEDURE – Interlocutory injunction – application to restrain voluntary administrators from continuing to act – application to restrain party claiming to be secured creditor from taking any enforcement action – whether prima facie case administrators appointment invalid – whether damages would be an adequate remedy for invalid appointment of administrators – balance of convenience.