John McInerney and Phillip Campbell-Wilson in their capacity as liquidators of St Gregory’s Armenian School Inc v Michael Ghougassian & Anor [2020] NSWSC 197

Supreme Court New South Wales

Medium Neutral Citation: John McInerney and Phillip Campbell-Wilson in their capacity as liquidators of St Gregory's Armenian School Inc v Michael Ghougassian & Anor [2020] NSWSC 197 Hearing dates: 2 March 2020 Date of orders: 09 March 2020 Decision date: 09 March 2020 Jurisdiction: Equity - Corporations List Before: Gleeson J Decision: (1) Subject to the first defendant undertaking to the Court and to the plaintiffs to take all necessary steps to commence and pursue with due expedition the assessment of the costs order in his favour in proceedings 2013/386207, being order 6 made on 16 November 2015, order that execution on the judgment dated 27 September 2019 for all amounts in excess of $240,000 be stayed pending the assessment of the costs order in proceedings 2013/386207 or earlier further order.

(2) There be no order as to costs of the applicants' notice of motion filed 5 December 2019. Catchwords: CORPORATIONS – winding up – Association in liquidation since 2010 – where liquidators obtained judgment debt following costs assessment – where liquidators seek to enforce judgment debt – surplus in liquidation to be distributed – Associations Incorporation Act 1984 (NSW) s 53 – where judgment debtors seek stay of enforcement of writ of levy of property – Civil Procedure Act 2005 (NSW) s 67 – where judgment debtors apply to set aside costs order on which judgment debt is based – whether arguable that costs order obtained irregularly or against good faith – Uniform Civil Procedure Rules 2005 (NSW) r 36.15 – whether set-off of judgment debt against unquantified costs order in favour of one judgment debtor – partial stay ordered Legislation Cited: Associations Incorporation Act 1984 (NSW), s 51(1), 53 Civil Procedure Act 2005 (NSW), s 67, 135 Corporations Act 2001 (Cth), ss 482, 530A, 530B(3), 533, 1321 Uniform Civil Procedure Rules 2005 (NSW), r 36.15 Cases Cited: Alexander v Cambridge Credit Corp Ltd (1985) 2 NSWLR 685 Andrews v John Fairfax & Sons Ltd (1979) 2 NSWLR 184 Australian Beverage Distributors Pty Ltd v Evans & Tate Premium Wines Pty Ltd [2006] NSWSC 560; (2006) 58 ACSR 22 In the matter of St Gregory's Armenian School Inc [2015] NSWSC 1465 In the matter of St Gregory's Armenian School Inc [2015] NSWSC 1701 In the matter of St Gregory's Armenian School Inc: Ghougassian v Arnautovic in his capacity as Liquidator of St Gregory's Armenian School Inc [2018] NSWSC 1022 Kalifair Pty Ltd v Digi-tech (Australia) Ltd (2002) 55 NSWLR 737; [2002] NSWSC 383 Kendell v Carnegie (2006) 68 NSWLR 193; [2006] NSWCA 302 Padkohe Pty Ltd v Fletcher [2006] NSWSC 1239 Re Barrell Enterprises [1972] 3 All ER 631; [1973] 1 WLR 19 Re Data Homes Pty Ltd (1972) 2 NSWLR 22 Category: Principal judgment Parties: John McInerney in his capacity as a liquidator of St Gregory's Armenian School Inc (First plaintiff / First respondent) Phillip Campbell-Wilson in his capacity as a liquidator of St Gregory's Armenian School Inc (Second plaintiff / Second respondent) Michael Ghougassian (First defendant / First applicant) Daniel Ghougassian (Second defendant / Second applicant) Representation: Counsel: Mr N Newton (Plaintiffs / Respondents) Mr P E King (Defendants / Applicants)