21 Sept 2011
VICTORIA STREET APARMENTS LTD (IN LIQUIDATION) and ANOR v SHARMA and ORS HC AK CIV-2009-404-008377
- Citation
- openlaw-9b000dc7_44d9_4731_af92_b94f1a927308.pdf
- Court
- High Court
The Court held that Mr Sharma, as the company's directing mind and privy to the arbitration, was estopped from denying the Otis and Treasury GST debts; he knowingly misapplied VSAL funds to benefit himself and associated entities while VSAL was insolvent or near-insolvent, thereby breaching fiduciary duties and constituting equitable fraud; the Limitation Act defence failed because s28 postponed the limitation period for equitable fraud; plaintiffs proven entitled to recover misapplied funds and to pursue equitable remedies, with quantification and ancillary relief reserved.