Australian Competition and Consumer Commission v Top Snack Foods Pty Ltd

Case

[1997] FCA 1547

19 DECEMBER 1997

No judgment structure available for this case.

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NG 782 of 1996

BETWEEN:

AUSTRALIAN COMPETITION AND
CONSUMER COMMISSION
APPLICANT

AND:

TOP SNACK FOODS PTY LIMITED
(ACN 064 180 181)
FIRST RESPONDENT

GEORGE MANERA
SECOND RESPONDENT

NICHOLAS KRITHARAS
THIRD RESPONDENT

SELINA MANERA
FOURTH RESPONDENT

ADWAY HOLDINGS PTY LTD
(ACN 054 201 857)
FIFTH RESPONDENT

NICK KRITHARAS HOLDINGS PTY LTD
(ACN 054 663 464)
SIXTH RESPONDENT

JUDGE:

TAMBERLIN J

DATE:

19 DECEMBER 1997

PLACE:

SYDNEY

REASONS FOR JUDGMENT
(Ex-Tempore Judgment)

In this matter a Notice of Motion was filed on 16 December 1997 by the applicant seeking to restrain a third party to the proceedings, Gatsios Holdings Pty Ltd (“Gatsios”), from mortgaging certain properties and from withdrawing monies from a specified bank account.

A Mareva injunction was granted by this Court on 7 November 1997 against the assets of Gatsios.  On 9 December 1997, the solicitors for Gatsios and the KN Trust, wrote to the solicitors for the applicant indicating that they proposed to apply to the Court to increase permissible withdrawals for the education, maintenance and support of the infant beneficiaries of the KN Trust account from $200 per week to $500 per week and to mortgage one of the two properties known as Lots 1 and 3 in Strata Plan 51691 to a maximum amount of $50,000 in order to pay for legal expenses.

I am not prepared to grant leave in this matter to vary the previous order so as to enable payment of the amount of $500 a week for the infant beneficiaries or to permit any mortgage being taken over the property for the purpose of paying legal fees.  On the evidence, I am not satisfied that there is a need.  I do not think it is appropriate that there should be any relaxation of the Mareva protection which has been imposed in the present case.

There has been a paucity of evidence on the part of Gatsios in relation to the KN Trust in order to justify any such variation.  I am not persuaded that there should be any increase in payments from $200 per week to $500 per week for the infant beneficiaries of the trust, nor do I think it is appropriate that there should be a mortgage over the property as this will substantially diminish the efficacy of the Mareva relief previously granted.

I now turn to the orders sought on the Notice of Motion before me.  To some extent par 2(b) of the Motion involves a technical variation in relation to the orders made earlier.  This is because there is a reference to an amount of $200 per week, whereas the orders of 7 November 1997 refer to “amounts less than $200 from time to time”.However, it seems clear from the letter of 9 December 1997 from the solicitors for Gatsios to the solicitors for the applicant, that a limit of $200 per week was understood by those advising the respondents to be the effect of the earlier order.  I think that the orders in the Notice of Motion ought be made and accordingly I make those orders.  I reserve liberty to Gatsios to apply on 14 days notice.  The costs of the Motion are to be costs in the cause.

Accordingly, I make orders 1, 2, 3 and 4 as in the Motion. However, I order that paragraph (b) shall replace the earlier form of the order.  I also vary order 3 as framed in the Motion so that no notice to vary shall be given by Gatsios before 15 January 1998.

I certify that this and the preceding two pages are a true copy of the Reasons for Judgment herein of the Honourable Justice Tamberlin

Associate:

Dated:            19 December 1997

Counsel for the Applicant: Mr I Faulkner
Solicitor for the Applicant: Australian Government Solicitor
Counsel for Gatsios Holdings Pty Ltd: Mr M W Hadley
Solicitor for Gatsios Holdings Pty Ltd: Conway O’Reilly
Date of Hearing: 19 December 1997
Date of Judgment: 19 December 1997
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