CIP Group Pty Ltd v So (No 3) [2023] FCA 518

Parties

Procedural Posture

Civil / Interlocutory Application for Injunction

Legal Issues

1. 1 Whether injunctive relief should be granted to prevent disposal of disputed assets pending trial
2. 2 Whether there is a serious question to be tried regarding parties’ entitlement to proceeds of property sales
3. 3 Whether all necessary parties are joined to the proceeding

Ratio Decidendi

The Court found that there is a serious question to be tried regarding the applicants’ entitlement to proceeds from further land sales (and the enforceability of tracing and constructive trust claims), that the balance of convenience favours preserving those proceeds to prevent frustration of potential relief, and that the applicants should be granted injunctive relief on condition that they seek to join all necessary interested parties (Ms Wong, Ms Leung, and SEL) within a specified period. The orders preserve the status quo without finally deciding the ultimate questions of proprietary entitlement or indefeasibility in the hands of UIP.

Court Disposition

Interlocutory injunction granted (conditional on joining further parties)

Orders

• The first and fourteenth to eighteenth respondents must notify applicants of any proposed sale of specified properties and must not deal with the proceeds except as directed and to hold such proceeds on trust.
• Such orders to operate until further order or unless earlier consent is given, and cease if requisite application to join specified parties is not made within 21 days.