Zhang v Zhang (No 2) [2025] FCA 98

Zhang v Zhang (No 2) [2025] FCA 98

A material change of circumstances was found since the original freezing orders were made, including uncertainty in asset values and significant asset transactions. This justified the variation of the freezing orders to require payment into court of a sum up to $7,334,167.33, to the extent the first applicant is able, to protect the court's process. The order is limited so as not to place the applicant in contempt if compliance is impossible. Additional document disclosure was refused as outside the purpose of ancillary disclosure orders.

Parties
First Applicant / First Cross Respondent: James Tenghui Zhang; Second Applicant: Yong Heng Australia Pty Ltd; Third Applicant / Fifth Cross Respondent: AUSEA Capital Investments Pty Ltd (ACN 169 944 950); Fourth Applicant / Third Cross Respondent: Australia Bai Fu Xin (International) Investment Pty Ltd (ACN 125 275 854); First Respondent / First Cross Claimant: Yihao (Eric) Zhang; Second Respondent / Second Cross Claimant: Tasman Development Holdings Pty Ltd (ACN 168 751 077); Third Respondent: Xinran (Yvonne) Liu; Fourth Respondent: Northwalker Realty Pty Ltd (ACN 607 370 721); Second Cross Respondent: 10 London Street Pty Ltd (ACN 607 189 739); Fourth Cross Respondent: Yong Heng Australia Ltd (ACN 605 345 239)
Jurisdiction
Australia
Judgment Date
19 February 2025
Procedural Posture
Interlocutory Application in Ongoing Proceedings / Application to Vary Freezing Orders Post Initial Orders, Before Final Judgment
Outcome
Application for variation of freezing orders granted in part - payment into court ordered to the extent practicable; broader document disclosure refused; costs reserved.
Legal Topics
Freezing Orders, Interlocutory Relief, Security for Payment Into Court, Disclosure Orders
Practice and Procedure Freezing Orders Interlocutory Relief Security for Payment Into Court Disclosure Orders

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Parties

James Tenghui Zhang

First Applicant / First Cross Respondent

Yong Heng Australia Pty Ltd

Second Applicant

AUSEA Capital Investments Pty Ltd (ACN 169 944 950)

Third Applicant / Fifth Cross Respondent

Australia Bai Fu Xin (International) Investment Pty Ltd (ACN 125 275 854)

Fourth Applicant / Third Cross Respondent

Yihao (Eric) Zhang

First Respondent / First Cross Claimant

Tasman Development Holdings Pty Ltd (ACN 168 751 077)

Second Respondent / Second Cross Claimant

Xinran (Yvonne) Liu

Third Respondent

Northwalker Realty Pty Ltd (ACN 607 370 721)

Fourth Respondent

10 London Street Pty Ltd (ACN 607 189 739)

Second Cross Respondent

Yong Heng Australia Ltd (ACN 605 345 239)

Fourth Cross Respondent

Procedural Posture

Interlocutory Application in Ongoing Proceedings / Application to Vary Freezing Orders Post Initial Orders, Before Final Judgment

Legal Issues

  1. 1 Whether circumstances justify variation of freezing orders to require payment into court
  2. 2 Whether additional disclosure should be ordered
  3. 3 Whether current asset position supports maintenance or variation of freezing orders

Ratio Decidendi

A material change of circumstances was found since the original freezing orders were made, including uncertainty in asset values and significant asset transactions. This justified the variation of the freezing orders to require payment into court of a sum up to $7,334,167.33, to the extent the first applicant is able, to protect the court's process. The order is limited so as not to place the applicant in contempt if compliance is impossible. Additional document disclosure was refused as outside the purpose of ancillary disclosure orders.

Court Disposition

Application for variation of freezing orders granted in part - payment into court ordered to the extent practicable; broader document disclosure refused; costs reserved.

Orders

  • First Applicant to disclose by affidavit his assets in Australia by 4.00pm on 6 March 2025, with full particulars.
  • Freezing Orders varied to require, by 4.00pm on 20 March 2025, payment into Court of up to $7,334,167.33, to the extent the First Applicant is able, pending determination of the proceeding.