In the matter of Courtenay House Capital Trading Group Pty Limited (in liquidation) and Courtenay House Pty Limited (in liquidation) [2018] NSWSC 404

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Courtenay House Capital Trading Group Pty Limited (in liquidation) and Courtenay House Pty Limited (in liquidation) [2018] NSWSC 404 Hearing dates: 29 March 2018 Date of orders: 05 April 2018 Decision date: 05 April 2018 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: The Pre-21 April 2017 Brexit Investors are the beneficial owners of the funds deposited by them into the NAB-1 Account, and the liquidators are justified in distributing the funds deposited by the Pre-21 April 2017-Brexit Investors to them only, and not to other creditors of the Companies. The Post-21 April 2017 Brexit Investors are the beneficial owners of the funds deposited by them into the NAB-1 Account, and the liquidators are justified in distributing the funds deposited by the Post 21 April 2017 Brexit Investors to them only, and not to other creditors of the Companies. Catchwords: CORPORATIONS – managed investment scheme – unregistered managed investment scheme – winding up – whether funds deposited by investors held on trust for investors or part of general assets – whether receipts by investors from other investors should be set off against entitlement to trust property

TRUSTS – express trust – intention – certainty – where documentation contains statement that funds "held in trust" – resulting trust – Quistclose trust – contrastive trust – Black v Freedman trust arising from fraudulent scheme Legislation Cited: (CTH) Corporations Act 2001, s 579E, s 579G, s 601EE, s 981D, Sch 2, s 90-15 (NSW) Trustee Act 1925, s 63 (NSW) Uniform Civil Procedure Rules 2005, r 28.2 (NSW) Supreme Court (Corporations) Rules 1999, r 2.13 Cases Cited: Associated Alloys Pty Ltd v ACN 001 452 106 Pty Ltd [2000] HCA 25; (2000) 202 CLR 588 Australasian Conference Association Ltd v Mainline Constructions Pty Ltd [1978] HCA 45; (1978) 141 CLR 335; 22 ALR 1; 53 ALJR 66 Australian Elizabethan Theatre Trust Ltd, Re [1991] FCA 344; (1991) 30 FCR 491; 102 ALR 681; 5 ASCR 587 Australian Securities and Investments Commission v Idylic Solutions Ltd [2009] NSWSC 1306; (2009) 76 ACSR 129 Australian Securities and Investments Commission v Letten (No 7) [2010] FCA 1231; (2010) 190 FCR 59; (2010) 80 ACSR 401 Australian Securities Commission v Buckley (1996) 7 BPR 15,024 Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567; [1968] 3 All ER 65; 3 WLR 1097 BBY Limited (Receivers and Managers appointed) (in liquidation), In the matter of [2016] NSWSC 1366 BBY Ltd (No 2), In the matter of [2018] NSWSC 346 Black v S Freedman & Co [1910] HCA 58; (1910) 12 CLR 105; 17 ALR 541 Byrnes v Kendle [2011] HCA 26; (2011) 243 CLR 253; 279 ALR 212; 85 ALJR 798 Compass Resources Ltd v Sherman [2010] WASC 41; (2010) 42 WAR 1 Courtenay House Trading Group Pty Ltd & Courtenay House Pty Ltd, In the matter of [2018] NSWSC 55 Courtenay House Trading Group Pty Ltd, In the matter of [2017] NSWSC 1792 Courtenay House Trading Group Pty Ltd, In the matter of [2017] NSWSC 1834 Freelance Global Ltd (in Liq) v Bensted [2016] VSC 181 Grocers of Wyong Pty Ltd v Retech Global Pty Ltd [2004] NSWSC 488 Kayford Ltd (in Liquidation), Re [1975] 1 All ER 604; [1975] 1 WLR 279 Korda v Australian Executor Trustee (SA) Limited [2015] HCA 6; (2015) 255 CLR 62; 317 ALR 225; 145 ALD 495; 89 AJLR 340 Legal Services Board v Gillespie-Jones [2013] HCA 35; (2013) 249 CLR 493; 300 ALR 430; 87 ALJR 985 Magarey Farlam Lawyers Trust Accounts (No 3), Re [2007] SASC 9; (2007) 96 SASR 337 MBF Australia Limited v Malouf [2008] NSWCA 214 MF Global Australia Ltd (in liq), In the matter of [2012] NSWSC 994 ; (2012) 267 FLR 27 Orix Australia Corporation Ltd v Moody Kiddell and Partners P/L [2005] NSWSC 1209 Russell-Cooke Trust Co v Prentis [2002] EWHC 2227; [2003] 2 All ER 478 Schebsman, Re [1944] Ch 83; 2 All ER 768 Sons of Gwalia Ltd (subject to deed of company arrangement) v Margaretic [2006] FCAFC 92; (2006) 232 ALR 119 Stephens Travel Service International Pty Ltd v Qantas Airways Ltd (1988) 13 NSWLR 331 TVSN Ltd, Re [2005] NSWSC 692 Texts Cited: Thomas SB, "Clayton's Case and the 'Common Pool' Exception" (2004) 15 JBFLP 177 Category: Procedural and other rulings Parties: Said Jahani (1P) John McInerney (2P) Courtenay House Capital Trading Group Pty Limited (in liquidation) (3P) Courtenay House Pty Limited (in liquidation) (4P) J.P. Melocco Pty Ltd (1D) Alamaidan Investments Pty Ltd ATF Del Vecchio Family Trust (2D) Lifesmart Trading Pty Limited (3D) Representation: Counsel: V. Whittaker w L. Hulmes (Ps) M. Izzo w B Michael (1D) C.R. Newlinds SC w P. Strickland (2D) I. Pike SC (3D) G. Phelps (Kyle Lester Sheridan, a creditor)