Syndicate Mortgage Solutions Pty Ltd v Khaled El-Sayed & ors [2010] NSWSC 348

Syndicate Mortgage Solutions Pty Ltd v Khaled El-Sayed & ors [2010] NSWSC 348

Leave should be granted to the cross-claimants to bring the cross-claim in the name of K & K Elsayed Pty Limited, as the proceedings are not vexatious or oppressive, have not been shown to be hopeless, the liquidator is indifferent, and practical considerations including indemnities offered address potential prejudice.

Jurisdiction
Australia
Judgment Date
18 March 2010
Procedural Posture
Civil / Interlocutory Application
Outcome
Leave granted
Legal Topics
['derivative Action' 'leave to Bring Proceedings in Name of Company' 'parties' 'liquidation']
['corporations Law' 'civil Procedure' 'equity'] ['derivative Action' 'leave to Bring Proceedings in Name of Company' 'parties' 'liquidation']

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Procedural Posture

Civil / Interlocutory Application

Legal Issues

  1. 1 ['Whether cross-claimants should be granted leave to bring proceedings in the name of K & K Elsayed Pty Limited (in liquidation)' 'Whether prospective defendants are entitled to be heard on application for leave in derivative actions under the inherent jurisdiction or Corporations Act 2001 s 237' 'Whether the proposed proceedings are vexatious, oppressive or have reasonable prospects of success' 'Attitude of the liquidator' 'Practical considerations regarding costs, indemnity, and effect on the company']

Ratio Decidendi

Leave should be granted to the cross-claimants to bring the cross-claim in the name of K & K Elsayed Pty Limited, as the proceedings are not vexatious or oppressive, have not been shown to be hopeless, the liquidator is indifferent, and practical considerations including indemnities offered address potential prejudice.

Court Disposition

Leave granted

Orders

  • ['Grant leave to the first, third and fifth cross-defendants to be heard on the application for leave for derivative cross-claim.' 'Grant leave to the first and second cross-claimants to bring a cross-claim in the name and on behalf of K & K Elsayed Pty Limited as third cross-claimant, as well as in their own right,...