Chu v Lin, in the matter of Gold Stone Capital Pty Ltd (No 6) [2024] FCA 1160

Chu v Lin, in the matter of Gold Stone Capital Pty Ltd (No 6) [2024] FCA 1160

Although the evidence just barely supports the existence of a serious question to be tried regarding potential involvement in the intention to defraud creditors, the balance of convenience favours continuation of the injunction restraining dealing with the property until the matter can be fully dealt with on 7 November 2024.

Parties
First Plaintiff and First Applicant: Hong Chu; Second Plaintiff and Second Applicant: Xueping Xu; First Defendant: Louise Carol Lin; Second Defendant: Hai Zong Cai; Third Defendant and Seventh Respondent: David Darmali; Fourth Defendant: Fiducia Asset Management Pty Ltd; Fifth Defendant: Xiao Wu; Sixth Defendant: Josephine Darmali; Seventh Defendant: Gold Stone Capital Pty Ltd; First Respondent: Haiming Cai; Second Respondent: Jia Liu; Third Respondent: Sunshine Cladding Pty Ltd; Fifth Respondent: Chu Li; Sixth Respondent: Silver Altum Pty Ltd
Jurisdiction
Australia
Judgment Date
27 September 2024
Procedural Posture
Interlocutory Application / Continuation of Injunction (interlocutory Phase)
Outcome
Interlocutory injunction continued until 7 November 2024; costs reserved.
Legal Topics
Freezing Orders, Injunctions, Fraud on Creditors
Commercial Law Corporations Law Insolvency Law Freezing Orders Injunctions Fraud on Creditors

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Parties

Hong Chu

First Plaintiff and First Applicant

Xueping Xu

Second Plaintiff and Second Applicant

Louise Carol Lin

First Defendant

Hai Zong Cai

Second Defendant

David Darmali

Third Defendant and Seventh Respondent

Fiducia Asset Management Pty Ltd

Fourth Defendant

Xiao Wu

Fifth Defendant

Josephine Darmali

Sixth Defendant

Gold Stone Capital Pty Ltd

Seventh Defendant

Haiming Cai

First Respondent

Jia Liu

Second Respondent

Sunshine Cladding Pty Ltd

Third Respondent

Chu Li

Fifth Respondent

Silver Altum Pty Ltd

Sixth Respondent

Procedural Posture

Interlocutory Application / Continuation of Injunction (interlocutory Phase)

Legal Issues

  1. 1 Whether there is a serious question to be tried that Chu Li and Silver Altum Pty Ltd were knowingly involved in an intention to defraud creditors under s 37A of the Conveyancing Act 1919 (NSW)
  2. 2 Whether the balance of convenience favours the continuation of the interlocutory injunction

Ratio Decidendi

Although the evidence just barely supports the existence of a serious question to be tried regarding potential involvement in the intention to defraud creditors, the balance of convenience favours continuation of the injunction restraining dealing with the property until the matter can be fully dealt with on 7 November 2024.

Court Disposition

Interlocutory injunction continued until 7 November 2024; costs reserved.

Orders

  • Chu Li and Silver Altum Pty Ltd are restrained from dealing with their title to the property known as 33A Kings Road, Vaucluse, NSW (Folio Identifier 1/230111) until 7 November 2024 or as otherwise agreed.
  • Costs reserved.