Australian Securities & Investments Commission v GDK Financial Solutions Pty Ltd (in liq) (No 6)

The Federal Court of Australia was asked to determine whether ZMB Australia Pty Ltd and Young Turks Pty Ltd could claim the proceeds from the sale of the Mews land, located in Western Australia. The dispute involved multiple defendants, including GDK Financial Solutions Pty Ltd, Windsor Village Management Pty Ltd, Western Retirement Village Management Pty Ltd, The Mews Village Nominees Pty Ltd, Peridon Management Pty Ltd, Rosedale Village Nominees Pty Ltd, and others. The Australian Securities and Investments Commission (ASIC) was also a party to the proceedings. The court had to decide on the legal issues regarding the assignment of rights and interests in the Mews scheme and the implications of these assignments on the claims of ZMB and Young Turks.

The court ruled that ZMB had indeed assigned all its beneficial interest in the Mews scheme to Touma Pty Ltd through a deed dated 25 September 2007. This assignment effectively divested ZMB of any interest in the proceeds of the sale of the Mews land. Given that Young Turks had previously transferred its interest in the Mews scheme to ZMB, it too had no standing to claim the proceeds. The court concluded that both ZMB and Young Turks' claims should be dismissed. The court also addressed the issue of costs, noting that while ZMB and Young Turks had made offers to compromise the proceedings, these offers did not constitute genuine compromises for the purposes of determining costs. The court ordered that the costs of the interlocutory process be paid by ZMB and Young Turks to the seventh defendant, Peter Hastings Warne, on the ordinary basis. Additionally, the court granted leave to appeal the judge's ruling on the assignment of rights, should such leave be required.

The court's final order dismissed the interlocutory process filed by ZMB and Young Turks, directed that the thirteenth and fourteenth defendants pay the costs of the interlocutory process, and granted leave to appeal the judge's ruling on the assignment of rights if necessary.