SM Engineering & Construction (NSW) Pty Ltd and Mehajer v Director General, NSW Fair Trading [2015] NSWCATOD 27

SM Engineering & Construction (NSW) Pty Ltd and Mehajer v Director General, NSW Fair Trading [2015] NSWCATOD 27

Mr Mehajer is a fit and proper person to hold a contractor licence. Although his answers on the application form could have been more detailed, they do not warrant disqualification. Evidence established that he took all reasonable steps to avoid the liquidation of the companies. There is no evident risk that the applicants will be unable to complete future contracts. As a result, Mr Mehajer is entitled to a contractor licence without conditions. The company is entitled to a licence restricted to residential building work and a condition limiting contract value as specified in cl 26(2)(c).

Parties
First Applicant: SM Engineering & Construction (NSW) Pty Ltd; Second Applicant: Salim Mehajer; Respondent: Director General, NSW Fair Trading
Jurisdiction
Australia
Judgment Date
09 April 2015
Procedural Posture
Administrative Review / Hearing and Determination of Review
Outcome
Decisions under review set aside; contractor licences to be issued subject to conditions as specified.
Legal Topics
Contractor Licensing, Fit and Proper Person Test, External Administration and Licensing, Conditions on Builder Licences
Administrative Law Building and Construction Law Contractor Licensing Fit and Proper Person Test External Administration and Licensing Conditions on Builder Licences

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Parties

SM Engineering & Construction (NSW) Pty Ltd

First Applicant

Salim Mehajer

Second Applicant

Director General, NSW Fair Trading

Respondent

Procedural Posture

Administrative Review / Hearing and Determination of Review

Legal Issues

  1. 1 Whether Mr Mehajer is a fit and proper person to hold a contractor licence under the Home Building Act 1989 (NSW)
  2. 2 Whether all reasonable steps were taken to avoid the liquidation of related companies
  3. 3 Whether there is no evident risk to the public that the applicants will be unable to complete future residential building work contracts

Ratio Decidendi

Mr Mehajer is a fit and proper person to hold a contractor licence. Although his answers on the application form could have been more detailed, they do not warrant disqualification. Evidence established that he took all reasonable steps to avoid the liquidation of the companies. There is no evident risk that the applicants will be unable to complete future contracts. As a result, Mr Mehajer is entitled to a contractor licence without conditions. The company is entitled to a licence restricted to residential building work and a condition limiting contract value as specified in cl 26(2)(c).

Court Disposition

Decisions under review set aside; contractor licences to be issued subject to conditions as specified.

Orders

  • Decisions under review in each case set aside.
  • Contractor licence issued to the second applicant (Salim Mehajer) without conditions.