Securities and Exchange Board of India v MiiResorts Group 1 Pty Ltd (No 2) [2021] FCA 1646

Securities and Exchange Board of India v MiiResorts Group 1 Pty Ltd (No 2) [2021] FCA 1646

It would not be appropriate to abandon court supervision and security until distribution of trust funds is complete, and further delay justifies maintaining the bond as security, varying the order to allow a further period before potential forfeiture.

Parties
Applicant: Securities and Exchange Board of India; First Respondent: MiiResorts Group 1 Pty Ltd ACN 140 177 395; Second Respondent: Pearls Infrastructure Projects Limited (India)
Jurisdiction
Australia
Judgment Date
21 December 2021
Procedural Posture
Interlocutory Application / Order and Reasons for Judgment
Outcome
Interlocutory application dismissed; previous order varied to allow more time for distribution before bond forfeiture.
Legal Topics
Distribution of Trust Funds, Ponzi Scheme, Bond Security, Practice and Procedure
Commercial Law Corporations Law Corporate Insolvency Distribution of Trust Funds Ponzi Scheme Bond Security Practice and Procedure

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Parties

Securities and Exchange Board of India

Applicant

MiiResorts Group 1 Pty Ltd ACN 140 177 395

First Respondent

Pearls Infrastructure Projects Limited (India)

Second Respondent

Procedural Posture

Interlocutory Application / Order and Reasons for Judgment

Legal Issues

  1. 1 Whether to dismiss interlocutory application regarding security for distribution of funds
  2. 2 Whether to vary previous order relating to timeframe for distribution of trust funds
  3. 3 Whether the bond amount should be forfeited due to delay in distribution

Ratio Decidendi

It would not be appropriate to abandon court supervision and security until distribution of trust funds is complete, and further delay justifies maintaining the bond as security, varying the order to allow a further period before potential forfeiture.

Court Disposition

Interlocutory application dismissed; previous order varied to allow more time for distribution before bond forfeiture.

Orders

  • The interlocutory application dated 30 November 2021 be dismissed.
  • Order 6 made on 3 June 2020 be varied such that if, on or by 21 December 2022, an affidavit is not filed by the solicitors for the applicant deposing to the complete distribution of the Residual Fund then, subject to further order, the Bond Amount be forfeited to the Court.