Kassem (liquidator), in the matter of GKIII Hospitality Group Pty Ltd (in liq) v Khouzame [2024] FCA 476

Kassem (liquidator), in the matter of GKIII Hospitality Group Pty Ltd (in liq) v Khouzame [2024] FCA 476

The Court made the freezing orders because the plaintiffs had commenced proceedings seeking final declarations of contraventions of ss 588G and 588V of the Corporations Act 2001 (Cth) and damages under ss 588M and 588W, satisfying the preconditions in s 1323; the liquidator's investigations indicated significant indicia of insolvency and substantial tax debt; and the timing of the property sales, failure to comply with the restructuring plan, removal of assets from the business premises and non-compliance with a s 530A notice established a considerable or unacceptable risk that proceeds of the second Condell Park property would be dissipated unless restrained. A freezing order, with a...

Jurisdiction
Australia
Judgment Date
05 April 2024
Procedural Posture
Ex Parte Application for Freezing Orders Under S 1323 of the Corporations Act 2001 (cth) in Corporations and Corporate Insolvency Proceedings / Orders Made on 5 April 2024; Reasons for Judgment Published on 8 May 2024
Outcome
Freezing orders and information eliciting orders made against the defendants under s 1323 of the Corporations Act 2001 (Cth).
Legal Topics
['freezing Orders' 'section 1323 of the Corporations Act 2001 (cth)' 'insolvent Trading' 'liquidation' 'dissipation of Assets' 'information Eliciting Orders']
['corporations' 'corporate Insolvency'] ['freezing Orders' 'section 1323 of the Corporations Act 2001 (cth)' 'insolvent Trading' 'liquidation' 'dissipation of Assets' 'information Eliciting Orders']

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Procedural Posture

Ex Parte Application for Freezing Orders Under S 1323 of the Corporations Act 2001 (cth) in Corporations and Corporate Insolvency Proceedings / Orders Made on 5 April 2024; Reasons for Judgment Published on 8 May 2024

Legal Issues

  1. 1 ['Whether the preconditions for making orders under s 1323 of the Corporations Act 2001 (Cth) were satisfied.' 'Whether it was necessary or desirable to make freezing orders to protect the interests of aggrieved persons.' 'Whether there was an unacceptable risk that Chady Khouzame might dissipate proceeds of sale from the second Condell Park property.' 'Whether information eliciting orders should be made to identify assets captured by the freezing orders and proceeds of sale of the first Condell Park property.']

Ratio Decidendi

The Court made the freezing orders because the plaintiffs had commenced proceedings seeking final declarations of contraventions of ss 588G and 588V of the Corporations Act 2001 (Cth) and damages under ss 588M and 588W, satisfying the preconditions in s 1323; the liquidator's investigations indicated significant indicia of insolvency and substantial tax debt; and the timing of the property sales, failure to comply with the restructuring plan, removal of assets from the business premises and non-compliance with a s 530A notice established a considerable or unacceptable risk that proceeds of the second Condell Park property would be dissipated unless restrained. A freezing order, with a...

Court Disposition

Freezing orders and information eliciting orders made against the defendants under s 1323 of the Corporations Act 2001 (Cth).

Orders

  • ['Prayer 1 to Prayer 8 of the originating process filed on 5 April 2024 be returnable instanter.' 'Pursuant to rr 1.39 and 10.24 of the Federal Court Rules 2011 (Cth), time for service of the originating process and supporting affidavit of Ozem Kassem affirmed on 5 April 2024 be abridged and service be effected by...