In the matter of Courtenay House Capital Trading Group Pty Limited (in liquidation) [2018] NSWSC 1918

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Courtenay House Capital Trading Group Pty Limited (in liquidation) [2018] NSWSC 1918 Hearing dates: 20 November 2018 Decision date: 12 December 2018 Jurisdiction: Equity - Corporations List Before: Black J Decision: The freezing orders as previously made are continued and varied to exclude exceptions for living expenses and legal expenses payable from specified bank accounts of the Defendants. Catchwords: CORPORATIONS – application for continuance and variation of freezing orders under s 1323 of the Corporations Act 2001 (Cth) – where persons under investigation were held out to be key persons within the companies – whether strong prima facie case that persons under investigation had constructive notice that funds in company bank accounts were trust funds – whether strong prima facie case that the persons under investigation were not bona fide purchasers without notice – where substantial risk that funds the subject of the claim will be dissipated and aggrieved persons will be deprived of a remedy – whether the persons under investigation should be permitted to use certain funds the subject of the claim to pay living or legal expenses. Legislation Cited: - Australian Securities and Investments Commission Act 2001 (Cth) ss 12GF, 13 - Corporations Act 2001 (Cth) ss 1317H, 1323 Cases Cited: - Australian Securities and Investments Commission v Burnard [2007] NSWSC 1217 - Australian Securities and Investments Commission v Carey (No 15) [2007] FCA 544 - Australian Securities and Investments Commission v CFS Private Wealth Pty Ltd [2018] FCA 1070; (2018) 129 ACSR 171 - Australian Securities and Investments Commission v Krecichwost [2007] NSWSC 948; (2007) 64 ACSR 411 - Australian Securities and Investments Commission v Oliver Banovec (No 2) [2007] NSWSC 961 - Australian Securities and Investments Commission v Sigalla [2010] NSWSC 1423 - Australian Spirit Management Pty Ltd v Commissioner of Taxation [2012] NSWSC 123 - Baden Delvaux & Lecuit v Societe Generale pour Favoriser le Development du Commerce [1992] 4 All ER 161; [1993] 1 WLR 509 - Badman v Drake [2008] NSWSC 968 - Black v S Freedman & Co (1910) 12 CLR 105 - Birketu Pty Ltd v Westpac Banking Corporation (No 2) [2018] NSWSC 494 - Fistar v Riverwood Legion and Community Club Ltd [2016] NSWCA 81; (2016) 91 NSWLR 732 - Great Investments Ltd v Warner [2016] FCAFC 85; (2016) 243 FCR 516 - Independent Trustee Services Ltd v GP Noble Trustees Ltd [2009] EWHC 161 (Ch) - PCW (Underwriting Agencies) Ltd v Dixon [1983] 2 All ER 158 - Petar v Macedonian Orthodox Community Church St Petka Inc [2006] NSWCA 277 - Polly Peck International Plc v Nadir (No 2) [1992] 4 All ER 769 - Re Courtenay House Capital Trading Group Pty Ltd [2017] NSWSC 467 - Re HIH Insurance Ltd (In prov liq); Australian Securities and Investments Commission v Adler [2001] NSWSC 451; (2001) 38 ACSR 266 - Re Richstar Enterprises Pty Ltd; Australian Securities and Investments Commission v Carey (No 3) [2006] FCA 433; (2006) 57 ACSR 307 - Solomon v Corporate Affairs Commission (NSW) (1992) 10 ACSR 67 Category: Procedural and other rulings Parties: Courtenay House Capital Trading Group Pty Limited (in liquidation) (First Plaintiff) Courtenay House Pty Ltd (in liquidation) (Second Plaintiff) Tony Iervasi aka Anthony Ierasi, Antonio Iervasi and Tony Ieruasi (First Defendant) David Sipina (Second Defendant) Athan Papoulias (Third Defendant) Proactive Property Services Pty Ltd (Fourth Defendant) Sipina Enterprises Pty Ltd (Fifth Defendant) TheNowGroup.com.au Pty Ltd (Sixth Defendant) Representation: Counsel: R Scruby SC/D Robertson (Plaintiffs) C Birch SC/D Hughes (Second and Fifth Defendants and Arbejo Pty Limited) S Goodman SC/N Case (Third and Sixth Defendants)