Ausmart Services Pty Ltd (In Liq) v Zheng

Ausmart Services Pty Ltd (In Liquidation) and others sought ex parte freezing orders over the assets of various defendants. The orders were sought on the basis of an arguable case against the defendants for the recovery of moneys in respect of the defendants' alleged participation in criminal conduct. The defendants were directors and officers of companies in liquidation and others involved in the alleged misconduct. The court was required to determine whether the plaintiffs had a good arguable case against the defendants, and whether there was a danger that a prospective judgment would be wholly or partly unsatisfied due to the removal or dissipation of assets. The court found that the plaintiffs had a good arguable case against the defendants for the recovery of moneys in respect of the defendants' alleged criminal conduct. The court was satisfied that there was a danger that a prospective judgment obtained by the plaintiffs against the defendants would be wholly or partly unsatisfied because the defendants might dispose of, deal with or diminish the value of their assets. The court found that the nature of the scheme in which the defendants appeared to have engaged was such that it was reasonable to infer that they were not the sort of people who would, unless restrained, preserve their assets intact so that they might be available to the plaintiffs. The court granted the interim freezing orders as sought. The orders were to be made returnable immediately and were to remain in effect until 4pm on 24 January 2020.