FEDERAL COURT OF AUSTRALIA
Aroo K Pty Ltd v Devils@Cradle Pty Ltd [2021] FCA 1002
File number(s): TAD 22 of 2021 Judgment of: O'CALLAGHAN J Date of judgment: 18 August 2021 Catchwords: CORPORATIONS – application under s 237 of the Corporations Act 2001 (Cth) for leave to bring a proceeding on behalf of a company – application granted Legislation: Corporations Act 2001 (Cth) ss 236, 237, 237(2)(e)(ii) Cases cited: Adventure Golf Systems Australia Pty Ltd v Belgravia Health & Leisure Group Pty Ltd (2017) 54 VR 625
Australian Competition and Consumer Commission v Quantum Housing Group Pty Ltd [2021] FCAFC 40; (2021) 388 ALR 577
Chan vZachariah (1984) 154 CLR 178
Fiduciary Ltd v Morningstar Research Pty Ltd [2005] NSWSC 442; (2005) 53 ACSR 732
Goozee v Graphic World Group Holdings Pty Ltd (2002) 170 FLR 451
Management Service Australia Pty Ltd v PM Works Pty Ltd [2017] NSWSC 1743
Rae & Partners Pty v Shaw [2020] TASFC 14
Swansson v RA Pratt Properties Pty Ltd [2002] NSWSC 583; (2002) 42 ACSR 313
United Dominions Corporation Ltd v Brian Pty Ltd (1985) 157 CLR 1
Division: General Division Registry: Tasmania National Practice Area: Commercial and Corporations Sub-area: Corporations and Corporate Insolvency Number of paragraphs: 30 Date of hearing: 18 August 2021 Counsel for the Applicants: Mr S McElwaine SC Counsel for the First Respondent: The First Respondent did not appear Solicitor for the Second and Third Respondents: Mr C Groves of Dobson Mitchell Allport ORDERS
TAD 22 of 2021 BETWEEN: AROO K PTY LTD
First Applicant
ANDROO KELLY
Second Applicant
AND: DEVILS@CRADLE PTY LTD
First Respondent
WADE JOHN ANTHONY
Second Respondent
CRADLE VIEW PTY LTD
Third Respondent
ORDER MADE BY:
O'CALLAGHAN J
DATE OF ORDER:
18 AUGUST 2021
THE COURT ORDERS THAT:
1.Pursuant to s 237 of the Corporations Act 2001 (Cth), leave be granted to Aroo K Pty Ltd and Androo Kelly to bring a proceeding in the name of Devils@Cradle Pty Ltd against Cradle View Pty Ltd and Wade John Anthony substantially in the form of the draft statement of claim annexed to the affidavit of Androo Kelly affirmed 16 June 2021, including Devils@Cradle Pty Ltd as the third applicant.
2.Costs reserved.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
REASONS FOR JUDGMENT
O’CALLAGHAN J:
I made the orders recorded above after hearing from counsel. These are my reasons.
This is an application by Mr Androo Kelly (Mr Kelly) and Aroo K Pty Ltd (Aroo) for leave pursuant to s 237 of the Corporations Act 2001 (Cth) to bring a proceeding in the name of Devils@Cradle Pty Ltd (Devils@Cradle) (in addition to themselves) against Cradle View Pty Ltd (Cradle View) and Mr Wade Anthony (Mr Anthony), substantially in the form of a draft statement of claim prepared by Mr McElwaine SC, annexed to an affidavit sworn by Mr Kelly in support of the application.
The…
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- AGLC
- Aroo K Pty Ltd v Devils@Cradle Pty Ltd [2021] FCA 1002
- Case
- [2021] FCA 1002
- Decision Date
CaseChat Overview and Summary
The court was required to determine whether the application met the criteria for granting leave under section 237 of the Corporations Act. Specifically, the court had to assess if the applicants had a bona fide interest in the proceeding and if there were any circumstances that made it just and equitable to grant leave. The court also considered whether the application presented a serious question to be tried and if it was in the interest of justice to grant leave.
The court found that the applicants had established a bona fide interest in the proceeding and that there were serious questions to be tried. The court concluded that it was just and equitable to grant leave for the proceeding to be brought on behalf of Devils@Cradle Pty Ltd. The court further determined that the application presented a matter of significant importance and that granting leave was in the interest of justice.
The court granted leave to Aroo K Pty Ltd and Androo Kelly to bring the proceeding in the name of Devils@Cradle Pty Ltd against Cradle View Pty Ltd and Wade John Anthony. Costs were reserved for further determination. The court's decision was in line with the criteria set out in section 237 of the Corporations Act, ensuring that the proceeding could proceed with the necessary authorisation.
Orders
Orders of the court
1. Pursuant to s 237 of the Corporations Act 2001 (Cth), leave be granted to Aroo K Pty Ltd and Androo Kelly to bring a proceeding in the name of Devils@Cradle Pty Ltd against Cradle View Pty Ltd and Wade John Anthony substantially in the form of the draft statement of claim annexed to the affidavit of Androo Kelly affirmed 16 June 2021, including Devils@Cradle Pty Ltd as the third applicant.
2. Costs reserved.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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