ET China.Com International Holdings Limited v Rose [2017] NSWSC 1747

ET China.Com International Holdings Limited v Rose [2017] NSWSC 1747

The inherent power to protect the Court's process was enlivened because a Jersey winding up order would impose a statutory stay on the NSW proceedings, delay their prosecution, and add costs, thereby at least tending to interfere with proceedings regularly commenced and progressed in this Court. No discretionary reason, including comity, delay, harm, or creditor protection, justified refusal, so an interim restraint on continuing the Jersey winding up application was warranted until further order or determination of the NSW issues.

Jurisdiction
Australia
Judgment Date
08 December 2017
Procedural Posture
Civil Procedure; Application for Injunctive Relief in the Equity Commercial List / Ex Tempore Ruling on Notices of Motion Seeking to Restrain Continuation of Foreign Winding Up Proceedings
Outcome
Plaintiffs' application for injunctive relief granted against the second and sixth defendants.
Legal Topics
['anti Suit Injunction' 'inherent Jurisdiction' 'foreign Proceedings' 'winding Up Proceedings' 'interference With Court Process' 'trustee Conflict of Duties']
['civil Procedure' 'equity' 'commercial Law'] ['anti Suit Injunction' 'inherent Jurisdiction' 'foreign Proceedings' 'winding Up Proceedings' 'interference With Court Process' 'trustee Conflict of Duties']

Case Brief

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Procedural Posture

Civil Procedure; Application for Injunctive Relief in the Equity Commercial List / Ex Tempore Ruling on Notices of Motion Seeking to Restrain Continuation of Foreign Winding Up Proceedings

Legal Issues

  1. 1 ['Whether the Court should exercise its inherent jurisdiction to restrain the second and sixth defendants from continuing a Royal Court of Jersey winding up proceeding concerning the first plaintiff until determination of the substantive NSW proceedings.' 'Whether the Jersey proceeding interfered with, or had a tendency to interfere with, proceedings pending in the Supreme Court of New South Wales.' 'Whether discretionary considerations, including comity, delay, harm, and the absence of insolvency or creditor protection issues, justified refusing relief.' "Whether MAP's position as trustee involved an irremediable conflict of duties supporting injunctive relief."]

Ratio Decidendi

The inherent power to protect the Court's process was enlivened because a Jersey winding up order would impose a statutory stay on the NSW proceedings, delay their prosecution, and add costs, thereby at least tending to interfere with proceedings regularly commenced and progressed in this Court. No discretionary reason, including comity, delay, harm, or creditor protection, justified refusal, so an interim restraint on continuing the Jersey winding up application was warranted until further order or determination of the NSW issues.

Court Disposition

Plaintiffs' application for injunctive relief granted against the second and sixth defendants.

Orders

  • ['Until the further order of the Court, the second and sixth defendants are restrained from continuing with a proceeding in the Royal Court of Jersey for the winding up of the first plaintiff.']