Chaudhary v Bandicoot Group Pty Ltd

Chaudhary brought proceedings against Bandicoot Group Pty Ltd and others, alleging oppressive conduct and seeking relief under the Corporations Act 2001. The defendants applied to strike out certain paragraphs of the Statement of Claim, arguing that the allegations were not reasonably arguable and that the loss claimed was derivative. The Federal Court was tasked with determining whether the allegations in the Statement of Claim were sufficiently particularised and whether the loss claimed was distinct from that of the company.

The court found that the allegations in the Statement of Claim were reasonably arguable, despite the fact that the proceedings were not brought on behalf of the company. The court held that Chaudhary's loss was separate and distinct from that of the company, as it was not derivative but rather a direct consequence of the defendants' conduct. The court also found that the plea was not so lacking in particularity that it ought to be struck out, although it noted that further particulars could be requested. The court rejected the challenge to paragraph 47.1.7.8 and concluded that the defendants' application to strike out certain paragraphs of the Statement of Claim was otherwise dismissed.

The court ordered that paragraphs 46.1, 46.2 and 46.3.1 of the Third Statement of Claim be struck out. The defendants' interlocutory application dated 20 October 2016 was otherwise dismissed. The entry of orders was dealt with in Rule 39.32 of the Federal Court Rules 2011.