TRENUS OCEANWAY LTD v. RICHLAND INTERNATIONAL LTD AND ANOTHER

Parties

Procedural Posture

Companies Winding Up Proceedings / Interlocutory Application (summons for Specific Discovery and Directions for Expert Evidence)

Legal Issues

1. 1 Whether to permit expert accountant evidence and scope of permissible questions
2. 2 Whether broad specific discovery sought is relevant to the pleaded clean hands defence
3. 3 Proper time period for disclosure of bank and accounting documents

Ratio Decidendi

The court allowed limited expert accountant evidence confined to explanation of accounting practices specific to shipping and struck out expert questions that would answer factual issues for the judge; it refused broad discovery for documents post-January 2014 because those matters were not pleaded as relevant to the clean hands defence and the 1st Respondent had effectively admitted the substantive diversion such that detailed post-2014 exploration was unnecessary; discovery in respect of certain bank and accounting documents was ordered only for the period 1 June 2003 to 31 January 2014; the 1st Respondent must file a further list with a verifying affirmation under Order 25 r5(3); no...

Court Disposition

Summons partly granted and partly refused; expert evidence permitted in limited form; specific discovery limited in scope and period; further procedural steps ordered.

Orders

• Order for discovery in respect of paragraph 1 of the summons (Paragraph 1 of Schedule 1)
• Order for discovery of paragraphs 5 and 6 of Schedule 1 limited to the period 1 June 2003 to 31 January 2014 inclusive and a continuing obligation for new documents within that scope