ASIC v Rangwala and Go Markets Pty Ltd [2014] NSWSC 961

ASIC v Rangwala and Go Markets Pty Ltd [2014] NSWSC 961

Although ASIC was justified in commencing and maintaining its investigation and the parties should bear their own costs up to February 2014, ASIC acted unreasonably by allowing the applicants to incur further costs from 20 March 2014 when the Virtual Dealer concern had become a non-issue, ASIC had held the...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
21 July 2014
Procedural Posture
Proceedings for Orders Under S 1323 of the Corporations Act 2001 (cth), With a Costs Application After Discharge of Freezing Orders and Travel Restraint Orders / Costs Determination Following Consent Vacation of Restraining Orders and Dismissal of Proceedings Against the Applicants
Outcome
ASIC ordered to pay the applicants' costs of the proceedings from 20 March 2014 to 10 April 2014 inclusive; otherwise each party to pay its own costs.
Legal Topics
['asic Investigation' 's 1323 Asset Preservation Orders' 'freezing Orders' 'travel Restraint Orders' 'costs Following Discharge or Dismissal' 'reasonableness of Regulator Conduct']
['corporations' 'costs'] ['asic Investigation' 's 1323 Asset Preservation Orders' 'freezing Orders' 'travel Restraint Orders' 'costs Following Discharge or Dismissal' 'reasonableness of Regulator Conduct']

Source-derived case record

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Procedural Posture

Proceedings for Orders Under S 1323 of the Corporations Act 2001 (cth), With a Costs Application After Discharge of Freezing Orders and Travel Restraint Orders / Costs Determination Following Consent Vacation of Restraining Orders and Dismissal of Proceedings Against the Applicants

Legal Issues

  1. 1 ['Whether ASIC should pay the costs of Soyeb Roshanali Rangwala and Go Markets Pty Ltd after ex parte freezing orders and travel restraint orders were continued and later vacated by consent.' 'Whether UCPR 42.1 or UCPR 42.20(1) required costs to follow the event in proceedings brought for interim relief under s 1323 of the Corporations Act 2001 (Cth).' 'Whether ASIC acted unreasonably in maintaining the orders after information emerged that the Virtual Dealer concern was a non-issue and after the applicants sought a response to avoid further costs.']

Ratio Decidendi

Although ASIC was justified in commencing and maintaining its investigation and the parties should bear their own costs up to February 2014, ASIC acted unreasonably by allowing the applicants to incur further costs from 20 March 2014 when the Virtual Dealer concern had become a non-issue, ASIC had held the applicants' explanations and documents about the offshore payments since 11 November 2013, and there was no adequate explanation for waiting until 10 April 2014 to discharge the orders. ASIC was therefore ordered to pay the applicants' costs from 20 March 2014 to 10 April 2014 inclusive, with each party otherwise bearing its own costs.

Court Disposition

ASIC ordered to pay the applicants' costs of the proceedings from 20 March 2014 to 10 April 2014 inclusive; otherwise each party to pay its own costs.

Orders

  • ["ASIC is to pay the applicants' costs of the proceedings from 20 March 2014 to 10 April 2014 inclusive." 'Otherwise the parties are to pay their own costs of the proceedings.' 'If the parties are able to agree on a costs order in respect of this application, they are to file a Consent Order with my Chambers. Such...