In the matter of Bean & Sprout Pty Ltd (admin apptd) [2018] NSWSC 456

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Bean & Sprout Pty Ltd (admin apptd) [2018] NSWSC 456 Hearing dates: Submissions as to orders and costs 27 March–2 April 2018 Decision date: 13 April 2018 Jurisdiction: Equity - Corporations List Before: Black J Decision: Pursuant to s 447C(2) of the Corporations Act 2001 (Cth), the purported appointment of the Plaintiff as voluntary administrator of the First Defendant on 7 January 2018 is declared invalid. Pursuant to s 1322(4)(b) of the Corporations Act, ASIC shall rectify its register in relation to the First Defendant such that the status of the First Defendant be recorded as "registered" rather than "under external administration and/or controller appointed". The Fourth Defendant pay the Plaintiff's and the Second and Third Defendant's costs of the proceedings on an indemnity basis, as agreed or as assessed. Catchwords: COSTS – indemnity costs – where applicant acted reasonably in bringing the proceedings – where there was no reasonable prospect that the Court could have upheld the opposition advanced by the respondent – whether indemnity costs will be awarded pursuant to s 98 of the Civil Procedure Act 2005 (NSW). Legislation Cited: - Civil Procedure Act 2005 (NSW) s 98 - Corporations Act 2001 (Cth) ss 436A, 447A, 461, 1322 Cases Cited: - Cabport Pty Ltd v Marinchek (No 2) [2013] NSWCA 131 - Colgate-Palmolive Co v Cussons Pty Ltd (1993) 46 FCR 225 - Commonwealth of Australia v Gretton [2008] NSWCA 117 - Hamod v State of New South Wales [2002] FCAFC 97; (2002) 188 ALR 659 - Heath v Greenacre Business Park Pty Ltd [2016] NSWCA 34 - Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Markets Ltd (No 7) [2008] NSWSC 199; (2008) 65 ACSR 324 - Leichhardt Municipal Council v Green [2004] NSWCA 341 - Oshlack v Richmond River Council [1998] HCA 11; (1998) 193 CLR 72 - Re Centura Global Holdings Pty Ltd [2016] NSWSC 62 - Re DSHE Holdings Ltd (recs and mgrs apptd) (in liq) [2018] NSWSC 275 - Westpac Banking Corporation v Ollis [2007] NSWSC 1008 Category: Costs Parties: Kong Yao Chin in his capacity as administrator of Bean & Sprout Pty Ltd (admin apptd) (Plaintiff) Bean & Sprout Pty Ltd (admin apptd) (First Defendant) Jiayi Hui (Second Defendant) Jianshu Li (Third Defendant) Weiguang Huang (Fourth Defendant) Representation: Counsel: D Turner (Plaintiff) T Fishburn (Second and Third Defendants) M Rosenblatt (Solicitor – Fourth Defendant)