In the matter of Bleecker Property Group Pty Ltd (In Liquidation) [2023] NSWSC 1071

In the matter of Bleecker Property Group Pty Ltd (In Liquidation) [2023] NSWSC 1071

The application for default judgment against the Seventh Defendant is dismissed because granting judgment now, based solely on deemed admissions, carries an unacceptable risk of inconsistency with future findings about insolvency relevant to all defendants; such inconsistency would bring the administration of justice into disrepute.

Parties
First Plaintiff: Graeme Robert Beattie in his capacity as liquidator of the Second to Sixth Plaintiffs; Second Plaintiff: Bleecker Property Group Pty Ltd (In Liquidation) ACN 616 710 135; Third Plaintiff: Bleecker Property Group Pty Ltd (In Liquidation) as Trustee for NNG Properties Unit Trust ABN 18 872 534 725; Fourth Plaintiff: Greenacre Garden Development Pty Ltd (In Liquidation) ACN 636 176 602; Fifth Plaintiff: Greenacre Garden Development Pty Ltd (In Liquidation) as trustee for the Bankstown Development Trust ABN 42 665 236 015; Sixth Plaintiff: N & K Gazal Pty Ltd (In Liquidation) ACN 152 873 599; Seventh Plaintiff: N & K Gazal Pty Ltd (In Liquidation) as trustee for the Nathans Trust ABN 53 622 723 716; Eighth Plaintiff: Bleecker Development Pty Ltd (In Liquidation) ACN 625 763 215; First Defendant: Nahi Gazal; Second Defendant: Nathan Gazal; Third Defendant: Nazih Nasri Gazal; Fourth Defendant: Bassem El Youssef; Fifth Defendant: Susana Oliveira; Sixth Defendant: Cash Supply Pty Ltd ACN 627 780 376; Seventh Defendant: NG Property Management Pty Ltd as trustee for Ramsgate Unit Trust ABN 57 699 815 797; Eighth Defendant: NNG Holdings Pty Ltd as trustee for NNG Family Trust ABN 74 497 353 852; Ninth Defendant: Belfield Development Pty Ltd as trustee for Belfield Development Unit Trust ABN 29 973 708 574
Jurisdiction
Australia
Judgment Date
07 September 2023
Procedural Posture
Application Under Corporations Act 2001 (cth) S 588 Ff(1)(a) for Voidable Transactions / Interlocutory Motion for Default Judgment Against Seventh Defendant
Outcome
Application for default judgment dismissed
Legal Topics
Voidable Transactions, Default Judgment, Uncommercial Transactions, Insolvent Transactions, Court's Discretion in Default Judgment, Risk of Inconsistent Findings
Corporations Law Insolvency Civil Procedure Voidable Transactions Default Judgment Uncommercial Transactions Insolvent Transactions Court's Discretion in Default Judgment +1 more

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Parties

Graeme Robert Beattie in his capacity as liquidator of the Second to Sixth Plaintiffs

First Plaintiff

Bleecker Property Group Pty Ltd (In Liquidation) ACN 616 710 135

Second Plaintiff

Bleecker Property Group Pty Ltd (In Liquidation) as Trustee for NNG Properties Unit Trust ABN 18 872 534 725

Third Plaintiff

Greenacre Garden Development Pty Ltd (In Liquidation) ACN 636 176 602

Fourth Plaintiff

Greenacre Garden Development Pty Ltd (In Liquidation) as trustee for the Bankstown Development Trust ABN 42 665 236 015

Fifth Plaintiff

N & K Gazal Pty Ltd (In Liquidation) ACN 152 873 599

Sixth Plaintiff

N & K Gazal Pty Ltd (In Liquidation) as trustee for the Nathans Trust ABN 53 622 723 716

Seventh Plaintiff

Bleecker Development Pty Ltd (In Liquidation) ACN 625 763 215

Eighth Plaintiff

Nahi Gazal

First Defendant

Nathan Gazal

Second Defendant

Nazih Nasri Gazal

Third Defendant

Bassem El Youssef

Fourth Defendant

Susana Oliveira

Fifth Defendant

Cash Supply Pty Ltd ACN 627 780 376

Sixth Defendant

NG Property Management Pty Ltd as trustee for Ramsgate Unit Trust ABN 57 699 815 797

Seventh Defendant

NNG Holdings Pty Ltd as trustee for NNG Family Trust ABN 74 497 353 852

Eighth Defendant

Belfield Development Pty Ltd as trustee for Belfield Development Unit Trust ABN 29 973 708 574

Ninth Defendant

Procedural Posture

Application Under Corporations Act 2001 (cth) S 588 Ff(1)(a) for Voidable Transactions / Interlocutory Motion for Default Judgment Against Seventh Defendant

Legal Issues

  1. 1 Whether default judgment should be granted against the Seventh Defendant for recovery of alleged voidable transactions under s 588FF(1)(a) of the Corporations Act 2001 (Cth)
  2. 2 Whether the risk of inconsistent findings in relation to insolvency as alleged in claims against multiple defendants precludes entering default judgment at this stage

Ratio Decidendi

The application for default judgment against the Seventh Defendant is dismissed because granting judgment now, based solely on deemed admissions, carries an unacceptable risk of inconsistency with future findings about insolvency relevant to all defendants; such inconsistency would bring the administration of justice into disrepute.

Court Disposition

Application for default judgment dismissed

Orders

  • Application for default judgment by the plaintiffs against NG Property Management Pty Ltd as trustee for Ramsgate Unit Trust is dismissed