In the matter of RCG CBD Pty Ltd (in liq) [2016] NSWSC 1489

In the matter of RCG CBD Pty Ltd (in liq) [2016] NSWSC 1489

Because the proceedings against the multiple defendants involved at least a common issue as to the solvency of RCG CBD Pty Ltd (in liquidation), leave under r 6.19 should be granted nunc pro tunc, to the extent required, to join the defendants. Any separate issues as to quantification or matters particular to individual defendants could be managed within one proceeding. The defendants' dismissal or strike out applications therefore failed. No costs order was made because the application had been made more complex than necessary by the positions taken, the issue whether leave was required was not determined, and a differential costs order by issue would serve no useful purpose.

Jurisdiction
Australia
Judgment Date
14 October 2016
Procedural Posture
Equity Corporations List; Application for Leave to Join Defendants Pursuant to R 6.19 of the Uniform Civil Procedure Rules 2005 (nsw) in Proceedings Concerning Voidable Transactions / Interlocutory Processes and Notice of Motion; Ex Tempore Judgment
Outcome
Leave granted nunc pro tunc to join the Defendants to proceedings 2016/195008, to the extent leave was required; Defendants' notice of motion and interlocutory processes dismissed; no order as to costs.
Legal Topics
['joinder of Defendants' 'leave Nunc Pro Tunc' 'voidable Transactions' 'insolvency as Common Issue' 'dismissal or Strike Out Applications' 'costs of Interlocutory Application']
['practice and Procedure' 'corporations' 'costs'] ['joinder of Defendants' 'leave Nunc Pro Tunc' 'voidable Transactions' 'insolvency as Common Issue' 'dismissal or Strike Out Applications' 'costs of Interlocutory Application']

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Procedural Posture

Equity Corporations List; Application for Leave to Join Defendants Pursuant to R 6.19 of the Uniform Civil Procedure Rules 2005 (nsw) in Proceedings Concerning Voidable Transactions / Interlocutory Processes and Notice of Motion; Ex Tempore Judgment

Legal Issues

  1. 1 ['Whether leave under r 6.19 of the Uniform Civil Procedure Rules 2005 (NSW) should be granted, nunc pro tunc if necessary, to join multiple defendants in proceedings concerning alleged voidable transactions.' "Whether the defendants' applications to dismiss or strike out the statement of claim against them should be dismissed." 'Whether any costs order should be made in circumstances where the application proceeded on issues that ultimately did not need to be determined.']

Ratio Decidendi

Because the proceedings against the multiple defendants involved at least a common issue as to the solvency of RCG CBD Pty Ltd (in liquidation), leave under r 6.19 should be granted nunc pro tunc, to the extent required, to join the defendants. Any separate issues as to quantification or matters particular to individual defendants could be managed within one proceeding. The defendants' dismissal or strike out applications therefore failed. No costs order was made because the application had been made more complex than necessary by the positions taken, the issue whether leave was required was not determined, and a differential costs order by issue would serve no useful purpose.

Court Disposition

Leave granted nunc pro tunc to join the Defendants to proceedings 2016/195008, to the extent leave was required; Defendants' notice of motion and interlocutory processes dismissed; no order as to costs.

Orders

  • ['Pursuant to r 6.19 of the Uniform Civil Procedure Rules 2005 (NSW), the Plaintiffs be granted leave, to the extent that any such leave is required, to bring proceedings 2016/195008 and join as defendants the Defendants in these proceedings nunc pro tunc.' 'The Notice of Motion filed by the First, Fifth, Seventh...