| IN THE SUPREME COURT OF VICTORIA | Not Restricted |
AT MELBOURNE
COMMERCIAL COURT
TECHNOLOGY ENGINEERING AND CONSTRUCTION LIST
S CI 2018 01685
| HASSAN EL-SAAFIN | First Plaintiff |
| MOHAMAD EL-SAAFIN | Second Plaintiff |
| v | |
| MARK FRANEK and others according to the Schedule | Defendants |
---
JUDGE: | LYONS J |
WHERE HELD: | Melbourne |
DATE OF HEARING: | 30 January and 14 February 2019 |
DATE OF RULING: | 15 March 2019 |
CASE MAY BE CITED AS: | El-Saafin & Anor v Franek & Ors (No 3) |
MEDIUM NEUTRAL CITATION: | [2019] VSC 155 |
---
CORPORATIONS – External administration – Second meeting of creditors - Appeal from person presiding’s decision to admit or reject proofs of debt - Section 75-100(4) of the Insolvency Practice Rules (Corporations) 2016 – Nature of appeal – Where debts or claims the subject of legal proceedings – Relief to be ordered where resolution to place company into liquidation would not have passed
CORPORATIONS – External administration – Second meeting of creditors – Whether external administrator or person presiding at meeting must ask creditor to give evidence in writing in relation to a debt claimed – Meaning of ‘if necessary’ - Section 75-95 of the Insolvency Practice Rules (Corporations) 2016
---
APPEARANCES: | Counsel | Solicitors |
| For the Plaintiff | Mr I Upjohn QC with Mr B Mason | Hicks Oakley Chessell Williams |
| For the First and Fourth Defendants | Mr J Evans QC with Mr P Miller | Mark J Halse |
| For the Second and Third Defendants | – | Capstone Koroneos Legal |
| For the Fifth and Sixth Defendants | Dr A Trichardt | Charles Fice Solicitors |
| For the Liquidators of Saafin Constructions Pty Ltd (receivers and managers appointed) (in liquidation) | Mr E Moon | Thomas Egan & Associates |
HIS HONOUR:
Introduction and Summary
In this proceeding, I have already delivered two interlocutory judgments.[1] For convenience, in these reasons, I will adopt the terms defined in them.
[1] El-Saafin & Anor v Franek & Ors [2018] VSC 450 (‘Reasons No 1’) and El-Saafin & Anor v Franek & Ors (No 2) [2018] VSC 683 (‘Reasons No 2’).
In this application, the plaintiffs appeal against certain decisions of Mr Ivan Glavas when presiding at the second meeting of the creditors of the Company held pursuant to s 439A of the Corporations Act 2001 (Cth) (the ‘Act’) on 12 November 2018 (the ‘12 November meeting’). At that meeting, the creditors whose proofs of debt were admitted by Mr Glavas voted by value, but not by number, to place the Company into liquidation. As a result, Mr Glavas used his casting vote to resolve to place the Company into liquidation.
The plaintiffs appeal against Mr Glavas’ decisions:
(1) to reject the 7 proofs of debt of Ramahi, Ibaida, Wael El-Saafin, El-Daouk, Nasser, Abou-Eid and Bakhtiyar and to reject part of the proofs of debt of each of Drs Atalla and Hegazy (collectively, the ‘rejected proofs’); and
(2) to admit 3 proofs of debt of Mekkya, MAG and Mr Ibrahim (collectively, the ‘challenged proofs’).
In the amended summons filed on 10 December 2018, the plaintiffs also sought an order…
Keep reading for free
Create a free CaseChat account to read El-Saafin v Franek (No 3) and more:
- Read every judgment in full
- Ask AI and get answers linked to paragraphs
- See how each paragraph was cited in later cases
- Download judgments as PDF or Word
One click creates your free account or signs you in.
By continuing you agree to the Terms and Privacy Policy.
- Case
- [2019] VSC 155
- Decision Date
CaseChat Overview and Summary
The court examined the legal framework to determine the validity of the appeal and the appropriate relief. It assessed the role of the external administrator and the person presiding at the meeting regarding creditors providing evidence in writing about debts claimed. Specifically, the court interpreted the phrase "if necessary" from section 75-95 of the Insolvency Practice Rules (Corporations) 2016. The court concluded that the external administrator or the person presiding at the meeting should ask creditors to provide evidence in writing only if it was necessary for the resolution of the meeting.
The court found that the appeal was validly made and that relief should be granted in this instance. It held that the external administrator or the person presiding at the meeting must ask creditors to give evidence in writing if necessary, thereby clarifying the procedural requirements for the administration of debts in external administration. The court's decision provided guidance on the interpretation and application of the relevant insolvency practice rules, ensuring clarity in the administration of creditors' meetings.
Orders
Orders of the court
Full text does not contain this section.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
Full text does not contain this section.