Kazar (liquidator) v Doshi, in the matter of PF1 Solutions Pty Ltd (in liq) (No 2) [2024] FCA 735

Kazar (liquidator) v Doshi, in the matter of PF1 Solutions Pty Ltd (in liq) (No 2) [2024] FCA 735

It was desirable to grant interim freezing and ancillary asset disclosure orders because it was at least arguable that the s 1323(1) discretion would be enlivened by a civil proceeding under the Corporations Act involving aggrieved persons and relevant persons who may become liable, the evidence may support the need to protect the plaintiffs' interests, and there was evidence capable of suggesting a risk that Mr Doshi and Ms Ting may take steps frustrating Court processes or execution of any judgment. Any asset disclosure orders going beyond s 1323(1) could be supported by s 23 of the Federal Court of Australia Act 1976 (Cth) and r 7.33 of the Federal Court Rules 2011 (Cth).

Jurisdiction
Australia
Judgment Date
08 July 2024
Procedural Posture
Commercial and Corporations Proceeding; Interlocutory Application for Ex Parte Freezing Orders and Asset Disclosure Orders / Ex Parte Application for Interim Orders Pending Determination of the S 1323(1) Application
Outcome
Application for interim and ancillary orders granted; freezing orders made pending determination of the s 1323(1) application.
Legal Topics
['freezing Orders' 'asset Disclosure Orders' 'ex Parte Interim Orders' 'corporations Act S 1323' 'liquidation' "directors' and Employees' Duties"]
['corporations Law' 'practice and Procedure'] ['freezing Orders' 'asset Disclosure Orders' 'ex Parte Interim Orders' 'corporations Act S 1323' 'liquidation' "directors' and Employees' Duties"]

Case Brief

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Procedural Posture

Commercial and Corporations Proceeding; Interlocutory Application for Ex Parte Freezing Orders and Asset Disclosure Orders / Ex Parte Application for Interim Orders Pending Determination of the S 1323(1) Application

Legal Issues

  1. 1 ['Whether interim freezing orders should be made ex parte pursuant to s 1323(3) of the Corporations Act 2001 (Cth) pending determination of the s 1323(1) application.' "Whether it was desirable to grant interim orders to protect the plaintiffs' interests where the defendants may become liable to pay money, damages or compensation or to account for property." 'Whether asset disclosure orders, to the extent they went beyond s 1323(1), could be made under s 23 of the Federal Court of Australia Act 1976 (Cth) and r 7.33 of the Federal Court Rules 2011 (Cth).']

Ratio Decidendi

It was desirable to grant interim freezing and ancillary asset disclosure orders because it was at least arguable that the s 1323(1) discretion would be enlivened by a civil proceeding under the Corporations Act involving aggrieved persons and relevant persons who may become liable, the evidence may support the need to protect the plaintiffs' interests, and there was evidence capable of suggesting a risk that Mr Doshi and Ms Ting may take steps frustrating Court processes or execution of any judgment. Any asset disclosure orders going beyond s 1323(1) could be supported by s 23 of the Federal Court of Australia Act 1976 (Cth) and r 7.33 of the Federal Court Rules 2011 (Cth).

Court Disposition

Application for interim and ancillary orders granted; freezing orders made pending determination of the s 1323(1) application.

Orders

  • ['A freezing order be made against the first defendant in the form set out in Schedule 1, pending determination of the s 1323(1) application.' 'A freezing order be made against the second defendant in the form set out in Schedule 2, pending determination of the s 1323(1) application.' 'A freezing order be made...