In the matter of Mikcon Group Australia Pty Ltd (in liq) [2024] NSWSC 1585

In the matter of Mikcon Group Australia Pty Ltd (in liq) [2024] NSWSC 1585

Mr Conneely, by virtue of cl 2.6 of the Guarantee & Indemnity, is obliged to pay to the liquidators the unpaid Mikcon Group Contributions as if the DOCA had not been terminated, and is liable for interest under cl 8.1 of the Guarantee & Indemnity. The charge over his interest in the Castle Hill Property secures this debt. The liquidators are entitled to orders for judgment against Mr Conneely, for interest against Mr Conneely and the Mikcon Group Companies, a declaration that Mr Conneely's interest is charged, and appointment as trustees for sale under s 66G of the Conveyancing Act, as the grounds for refusing such orders are not made out and the appointment is not precluded by alleged...

Parties
First Plaintiff: Christian Peter Sprowles in his capacity as liquidator of Mikcon Group Australia Pty Ltd (in liq); Second Plaintiff: Michael Andrew Hogan in his capacity as liquidator of Mikcon Group Australia Pty Ltd (in liq); Third Plaintiff: Mikcon Group Australia Pty Ltd (in liq); First Defendant: Michael Joseph Conneely; Second Defendant: Mikcon Pty Ltd; Third Defendant: Mikcon Plant Hire Pty Ltd; Fourth Defendant: Marie Elain Conneely; Fifth Defendant: Commonwealth Bank of Australia; Sixth Defendant: Thorn Australia Pty Ltd; Seventh Defendant: Porter Finance Australia Pty Ltd; Eighth Defendant: TL Commercial Finance Pty Ltd
Jurisdiction
Australia
Judgment Date
10 December 2024
Procedural Posture
Equity (corporations List) Originating Process / Judgment After Hearing (defendants Not Appearing)
Outcome
Judgment for plaintiffs as to money claims; order for sale of property; plaintiffs to bring short minutes to give effect to judgment.
Legal Topics
Enforcement of Guarantee by Director, Deed of Company Arrangement, Interest Calculation Under Guarantee, Termination of Co Ownership, Appointment of Trustee for Sale Under S 66 G Conveyancing Act 1919 (nsw)
Corporations Real Property Enforcement of Guarantee by Director Deed of Company Arrangement Interest Calculation Under Guarantee Termination of Co Ownership Appointment of Trustee for Sale Under S 66 G Conveyancing Act 1919 (nsw)

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Parties

Christian Peter Sprowles in his capacity as liquidator of Mikcon Group Australia Pty Ltd (in liq)

First Plaintiff

Michael Andrew Hogan in his capacity as liquidator of Mikcon Group Australia Pty Ltd (in liq)

Second Plaintiff

Mikcon Group Australia Pty Ltd (in liq)

Third Plaintiff

Michael Joseph Conneely

First Defendant

Mikcon Pty Ltd

Second Defendant

Mikcon Plant Hire Pty Ltd

Third Defendant

Marie Elain Conneely

Fourth Defendant

Commonwealth Bank of Australia

Fifth Defendant

Thorn Australia Pty Ltd

Sixth Defendant

Porter Finance Australia Pty Ltd

Seventh Defendant

TL Commercial Finance Pty Ltd

Eighth Defendant

Procedural Posture

Equity (corporations List) Originating Process / Judgment After Hearing (defendants Not Appearing)

Legal Issues

  1. 1 Whether director is liable under guarantee to pay unpaid contributions after termination of DOCA
  2. 2 Whether interest is payable under guarantee
  3. 3 Whether charge over property is enforceable

Ratio Decidendi

Mr Conneely, by virtue of cl 2.6 of the Guarantee & Indemnity, is obliged to pay to the liquidators the unpaid Mikcon Group Contributions as if the DOCA had not been terminated, and is liable for interest under cl 8.1 of the Guarantee & Indemnity. The charge over his interest in the Castle Hill Property secures this debt. The liquidators are entitled to orders for judgment against Mr Conneely, for interest against Mr Conneely and the Mikcon Group Companies, a declaration that Mr Conneely's interest is charged, and appointment as trustees for sale under s 66G of the Conveyancing Act, as the grounds for refusing such orders are not made out and the appointment is not precluded by alleged...

Court Disposition

Judgment for plaintiffs as to money claims; order for sale of property; plaintiffs to bring short minutes to give effect to judgment.

Orders

  • Judgment in the sum of $1,061,538.52 against Michael Joseph Conneely (to be updated with interest).
  • Order for interest in accordance with cl 8.1 of the Guarantee & Indemnity.