Akhil Holdings Ltd v Banque Commerciale SA (in Liq)

Akhil Holdings Ltd (the appellant) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales. The dispute concerned the appellant's claim for damages against Banque Commerciale SA (in liquidation) (the respondent) for alleged breaches of contract and negligence arising from the respondent's conduct as a financial advisor. The appellant sought to recover losses incurred as a result of the respondent's advice regarding an investment in a company called "The Australian Property Group".

The primary legal issues before the Court of Appeal were whether the respondent owed a duty of care to the appellant in providing financial advice, and if so, whether that duty had been breached. The court was also required to consider whether the appellant had suffered loss as a result of any such breach, and if so, the extent of that loss. A further issue was whether the respondent's liability was limited by any contractual provisions or by the doctrine of contributory negligence.

The Court of Appeal, in its reasoning, examined the nature of the relationship between the parties and the scope of the advice provided by the respondent. The court applied established principles of negligence and contract law, considering the foreseeability of harm and the reasonableness of the respondent's conduct in the circumstances. The court analysed the terms of the engagement between the parties and the extent to which the respondent's advice was relied upon by the appellant. The court also considered the impact of the respondent's liquidation on the proceedings.

The Court of Appeal allowed the appeal in part, finding that the respondent had breached its duty of care to the appellant. However, the court also found that the appellant had been contributorily negligent, and reduced the damages awarded accordingly. The matter was remitted to the Supreme Court for the assessment of damages.