In the matter of Cardinal Group Pty Ltd (in liq) and Cardinal Project Services Pty Ltd (in liq) [2018] NSWSC 748

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Cardinal Group Pty Ltd (in liq) and Cardinal Project Services Pty Ltd (in liq) [2018] NSWSC 748 Hearing dates: 21 May 2018 Decision date: 24 May 2018 Before: Gleeson JA Decision: (1) The amended notice of motion filed on 21 May 2018 be dismissed.

(2) Direct that the respondents file and serve short written submissions (not exceeding three pages) on the question of costs and any supporting affidavits within seven days, and the applicants file and serve any short written submissions in response (not exceeding three pages) and any supporting affidavits within seven days thereafter.

(3) Direct that the question of costs be determined on the papers. Catchwords: CORPORATIONS – winding up – public examinations by liquidators – application by examinee to set aside examination summons – where examinee's application was served one day late – consideration of merits of the application – whether the Court should extend time for service of the application or dispense with the rules governing service of the application

CORPORATIONS – winding up – public examinations by liquidators – application by examinee to set aside examination summons – where liquidators commenced proceedings in Federal Court relating to an insolvency trading claim – where one of the examinee's is a defendant in such proceedings – permissible scope of examinations – where liquidators seek to investigate the financial capacity of the defendant to meet any adverse judgment – whether the Supreme Court was an appropriate forum to conduct public examinations – whether the examinations would afford the liquidators an impermissible forensic advantage – whether impermissible use of the examination power under Corporations Act 2001 (Cth), s 597 – whether examination summons should be set aside Legislation Cited: Corporations Act 2001 (Cth), ss 9, 58AA, 439C, 446A, 588G, 596A, 596B, 597 Supreme Court (Corporations) Rules 1999 (NSW), rr 1.3(1), 1.10, 11.5(2) Cases Cited: Equititrust Ltd (in liq) (recs and mgrs. apptd) v Equititrust Ltd (in liq) (recs and mgrs. apptd) [2014] FCA 692; [2014] 13 ABC (NS) 191 In the matter of 82-84 Belmore Street Pty Ltd (in liq) [2014] NSWSC 1701 Meteyard v Love (in their capacity as recs and mgrs of Southland Coal Pty Ltd (in liq)) (2005) 65 NSWLR 36; [2005] NSWCA 444 Re Hugh J Roberts Pty Ltd (in liq) [1970] 2 NSWR 582 Re New Tel Ltd (in liq) (2005) 145 FCR 176 Wily re LED (South Coast) Pty Ltd (2009) 76 NSWLR 248; [2009] NSWSC 946 Category: Principal judgment Parties: Mr Sam Ebeid and Ms Elize Malan (Applicants) Richard Andrew Stone and Peter William Marsden as Liquidators of Cardinal Group Pty Ltd ACN 129 933 393 and Cardinal Project Services Pty Ltd ACN 090 113 705 (Respondents) Representation: Counsel: Mr D Allen (Applicants) Mr D Krochmalik (Respondents)