Satna Holdings Pty Ltd v Jokade Pty Ltd & Ors [1984] FCA 308

Satna Holdings Pty Ltd v Jokade Pty Ltd & Ors [1984] FCA 308

The application to strike out the Statement of Claim was dismissed because the company's constitutional objects and its conduct in undertaking the sale constituted activity 'in trade or commerce' under section 52 of the Trade Practices Act. The first trading activity of a corporation, given its trading objects, may fall within this definition; thus, a reasonable cause of action was disclosed.

Parties
Applicant: Satna Holdings Pty. Limited; First Respondent: Jokade Pty. Limited; Second Respondent: Gary Owen Crockett; Third Respondent: Council of the City of the Blue Mountains; Fourth Respondent: Edward McGuckin
Jurisdiction
Australia
Judgment Date
03 October 1984
Procedural Posture
Application / Interlocutory (motion to Strike Out Statement of Claim and Security for Costs)
Outcome
Application to strike out Statement of Claim dismissed; orders made for security for costs.
Legal Topics
Section 52 Trade Practices Act, Security for Costs, Meaning of 'in Trade or Commerce', Memorandum of Association Relevance
Trade Practices Contract Section 52 Trade Practices Act Security for Costs Meaning of 'in Trade or Commerce' Memorandum of Association Relevance

Case Brief

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Parties

Satna Holdings Pty. Limited

Applicant

Jokade Pty. Limited

First Respondent

Gary Owen Crockett

Second Respondent

Council of the City of the Blue Mountains

Third Respondent

Edward McGuckin

Fourth Respondent

Procedural Posture

Application / Interlocutory (motion to Strike Out Statement of Claim and Security for Costs)

Legal Issues

  1. 1 Whether Statement of Claim discloses a reasonable cause of action under Trade Practices Act s.52 and s.82
  2. 2 Whether contract to sell hotel premises was 'in trade or commerce'
  3. 3 Relevance of company objects where 'activities test' fails

Ratio Decidendi

The application to strike out the Statement of Claim was dismissed because the company's constitutional objects and its conduct in undertaking the sale constituted activity 'in trade or commerce' under section 52 of the Trade Practices Act. The first trading activity of a corporation, given its trading objects, may fall within this definition; thus, a reasonable cause of action was disclosed.

Court Disposition

Application to strike out Statement of Claim dismissed; orders made for security for costs.

Orders

  • The first and second respondents' application to strike out the Statement of Claim is dismissed.
  • The first and second respondents to pay the applicant's costs.