Bhagat v Smith

Case [2000] NSWCA 89


CITATION: BHAGAT v SMITH & ORS [2000] NSWCA 89
FILE NUMBER(S): CA 40395/99
HEARING DATE(S): 10 April 2000
JUDGMENT DATE:
14 April 2000

PARTIES :


HARI BHAGAT
v
GRANT SMITH & 5 ORS
JUDGMENT OF: Handley JA at 1; Sheller JA at 1
LOWER COURT JURISDICTION : Supreme Court - Common Law Division
LOWER COURT
FILE NUMBER(S) :
20986/97
LOWER COURT
JUDICIAL OFFICER :
Young J
COUNSEL: Claimant - In person
Opponent - B J Preston SC
SOLICITORS: Claimant - In person
Opponent - Mallesons Stephen Jaques
CATCHWORDS: ACTION TO SET ASIDE INTERLOCUTORY ORDER FOR FRAUD
CASES CITED:
Nicholls v Carpenter [1974] 1 NSWLR 369, 375
Wentworth v Rogers [No 5] (1986) 6 NSWLR 534, 539
Lawrance v Norreys (1890) 15 App Cas 210, 219-20
Banque Commerciale SA en liquidation v Akhil Holdings Ltd (1990) 169 CLR 279, 285
Wallingford v Mutual Society (1880) 5 App Cas 685, 697
W Scott Fell & Co v Lloyd (1906) 4 CLR 572, 576
DECISION: Summons for leave to appeal dismissed with costs


    THE SUPREME COURT
    OF NEW SOUTH WALES
    COURT OF APPEAL
    40395/99
HANDLEY JA
SHELLER JA


    Friday 14 April 2000

    HARI BHAGAT v GRANT SMITH & ORS

    JUDGMENT
1    THE COURT: This is a summons for leave to appeal from an interlocutory order of Young J pronounced on 6 May 1999 by which he struck out the claimant’s statement of claim. He also refused leave to amend so that his order was final in effect. 2    The amended statement of claim drafted by the claimant, who has appeared for himself throughout, runs to 78 pages. The relief sought included the setting-aside for fraud of an interlocutory judgment of Studdert J of 5 June 1996 given in a defamation action pending against the claimant, exemplary damages, and consequent on findings of fraud sought against the third and fifth defendants, their respective removals as Manager of the Meridian Investment Trust, and as Managing Director of the third and fourth defendants. 3    The fraud of the defendants alleged in the statement of claim was that they procured the judgment of Studdert J through false evidence allegedly given by Miss Mountford, a solicitor who was a member or employee of Cowley Hearne. Where the alleged fraud is perpetrated on the Court itself, the relief available in an action such as the present is rescission, that is, an order setting aside the earlier judgment, and not damages. See Nicholls v Carpenter [1974] 1 NSWLR 369, 375 per Glass JA. 4 The principles which govern an application to set aside a judgment for fraud are not in doubt, and the claimant accepted the statement of those principles by Kirby P in the passage from Wentworth v Rogers [No 5] (1986) 6 NSWLR 534, 539 quoted by Young J in his reasons for judgment. 5 The amended statement of claim is repetitious and prolix but paragraph 56 for example alleges that the first defendant, i.e. Ms Mountford, fraudulently gave “evidence…

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Bhagat v Smith [2000] NSWCA 89
Case
[2000] NSWCA 89
Decision Date

CaseChat Overview and Summary

Bhagat v Smith concerned an action brought by Bhagat seeking to set aside an interlocutory order previously made by the court. The dispute arose from allegations of fraud in relation to the obtaining of that earlier order. The matter was heard on appeal before Handley and Sheller JJA.

The primary legal issue before the Court of Appeal was whether it had the power to set aside an interlocutory order on the grounds of fraud, and if so, under what circumstances such power could be exercised. This involved considering the finality of interlocutory orders and the exceptions to that finality.

The Court of Appeal affirmed that it possessed the power to set aside an interlocutory order obtained by fraud. However, it held that such power should be exercised with caution and only in clear cases. The Court reasoned that while interlocutory orders are generally final, the court retains an inherent jurisdiction to prevent abuse of process and to ensure justice is done, particularly where fraud is established. The Court found that the evidence presented by Bhagat did not sufficiently demonstrate fraud to warrant setting aside the interlocutory order.

Consequently, the summons for leave to appeal was dismissed with costs.

Orders

Orders of the court

Summons for leave to appeal dismissed with costs

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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