In the matter of Dyamond Developments Pty Ltd (in liquidation) [2020] NSWSC 591

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Dyamond Developments Pty Ltd (in liquidation) [2020] NSWSC 591 Hearing dates: 12 May 2020 Decision date: 19 May 2020 Jurisdiction: Equity - Corporations List Before: Black J Decision: Orders to be made for the funds to be paid out of Court. Direction to be given that the Liquidator would be justified in applying the funds paid out of Court first to his claim to proper remuneration (subject to necessary approvals), costs and expenses in respect of certain matters and then to the First and Second Respondent in full or part satisfaction of judgment debt owed to them in separate proceedings. Catchwords: PROCEDURE – Payment into court – Where money paid into court to obtain extension of time to lead evidence of solvency – Where money paid into court to demonstrate ability to meet judgment amount – Whether money borrowed from associated entity and paid into court held on Quistclose trust in favour of lender – Where objectives of payment into Court satisfied. Legislation Cited: - Corporations Act 2001 (Cth), Sch 2, s 90-15 - Evidence Act 1995 (NSW), s 136 - Uniform Civil Procedure Rules 2005 (NSW), r 41.3 Cases Cited: - Australian Receivables Ltd v Tekitu Pty Ltd (subject to deed of company arrangement) (deed administrators appointed) [2011] NSWSC 1306 - Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567 - Cellarit Pty Ltd v Cawarrah Holdings Pty Ltd (No 2) [2018] NSWCA 266 - Dyamond Developments Pty Ltd v Puddick [2019] NSWSC 431 - Dyamond Developments Pty Ltd v Puddick [2020] NSWCA 32 - Grandview Ausbuilder Pty Ltd v Budget Demolitions Pty Ltd [2019] NSWCA 60; (2019) 136 ACSR 563 - Harmer v Federal Commissioner of Taxation [1991] HCA 51; (1991) 173 CLR 264 - James Roscoe (Bolton) Limited v Winder [1915] 1 Ch 62 - Morlea Professional Services Pty Ltd v Richard Walter Pty Ltd (in liq) [1999] FCA 1820; (1999) 34 ACSR 371 - Re Go Energy Group Ltd [2019] NSWSC 558 - Re Octaviar Administration Pty Ltd (in liq) [2017] NSWSC 1556 - Re Universal Distributing Co Ltd (in liq) (1933) 48 CLR 171 - Stewart v Atco Controls Pty Ltd (in liq) (2014) HCA 15; (2014) 252 CLR 307 - Walley; Re Poles & Underground Pty Ltd (admins apptd) [2017] FCA 486 - Warner (liquidator), Re Sakr Bros Pty Ltd (in liq) [2019] FCA 547 Category: Procedural and other rulings Parties: Sule Arnautovic as liquidator of Dyamond Developments Pty Ltd (in liq) (Applicant) Justin Frank Puddick (First Plaintiff/First Respondent) John Edward Puddick (Second Plaintiff/Second Respondent) George Hatzipapas (Third Respondent) Gaks Investments Pty Ltd (Fourth Respondent) Representation: Counsel: N Newton (Applicant) B Dziubinski (Solicitor) (First and Second Respondents) J T Johnson (Fourth Respondent)