GC Leasing Sydney Pty Ltd v Language Smart Pty Ltd - [2022] NSWLC 12

Local Court

New South Wales

Medium Neutral Citation: GC Leasing Sydney Pty Ltd v Language Smart Pty Ltd [2022] NSWLC 12
Hearing dates: 18 November 2021
Date of orders: 1 February 2022
Decision date: 01 February 2022
Jurisdiction: Civil
Before: Shields LCM
Decision:
(1)   GC is entitled to a verdict and judgment against:
(a)   LS for the amounts owing under the Agreement and claimed in the ASC; and
(b)   Bhalla for the amounts for which LS is liable to GC under the Agreement pursuant to the Guarantee;
(2)   The Cross Claim stands to be dismissed;
(3)   GC is entitled to an order that LS and Bhalla pay its costs of the proceedings, including the Cross Claim.

Legislation Cited:
Competition and Consumer Act 2010 (Cth), Sch 2 - Australian Consumer Law, ss 60 to 61, 278 to 282
Conveyancing Act 1919 (NSW), s 38
Property Law Act 1958 (Vic), ss 73 to 73B

Cases Cited:
Beesly v Hallwood Estates Ltd [1960] 2 All ER 314; [1960] 1 WLR 549
Ex parte Ryrie [1983] 2 Qd R 194
Howard F. Hudson Pty Ltd v Ronayne (1972) 126 CLR 449
Interchase Corp Ltd (in liq) v Cmr of Stamp Duties (Qld) (1993) 27 ATR 154; 93 ATC 5120
Keith v Pratt (1862) 10 WR 296
Lady Naas v Westminster Bank Ltd [1940] AC 366; [1940] 1 All ER 485; (1940) 109 LJ Ch 138; (1940) 162 LT 277
McKinlay v Dodds (1984) 3 BPR 9259
Reid Murray Holdings Ltd (in liq) v David Murray Holdings Pty Ltd (1972) 5 SASR 386
Scook v Premier Building Solutions Pty Ltd (2003) 28 WAR 124; [2003] WASCA 263
Wardley Australia Ltd v McPharlin (1984) 3 BPR 9500
Xenos v Wickham (1867) LR 2 HL 296

Category: Principal judgment
Parties: GC Leasing Sydney Pty Ltd – Plaintiff / Cross Defendant
Language Smart Pty Ltd –First Defendant / Cross Claimant
Shivam Bhalla – Second Defendant
Representation:
Counsel:
Ms E. Keynes of Counsel, for the Plaintiff
Mr. V. Mishra, Solicitor, for the Defendants
Solicitors:
O’Neill Partner - Plaintiff
Ajay Singh - Defendants

File Number(s): 2020/001174742
Publication restriction: NIL

JUDGMENT

By an amended Statement of Claim filed on 31 May 2021 the plaintiff, GC Leasing Sydney Pty Ltd (‘GC’), seeks to recover monies said to be owed by the defendant, Language Smart Pty Ltd (‘LS’) under a leasing agreement following termination of that agreement for default by LS. As against the second defendant, Mr Bhalla (‘Bhalla’), GC seeks recovery of the same amount pursuant to a guarantee and indemnity given by him concerning LS’s obligations under the lease.

Background

GC is a finance company whose business involves the purchase of equipment, software, and other goods on behalf of a customer which are then leased to the customer. The customer orders or arranges the purchase of the asset from a supplier and then applies to GC for finance. GC has no role in the discussions between the customer and the supplier of the asset. If the application for…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2022] NSWLC 12
Decision Date: 01 February 2022

CaseChat Overview and Summary

The case before the court involved GC Leasing Sydney Pty Ltd (GC) as the plaintiff, suing Language Smart Pty Ltd (LS) and Bhalla (collectively, the defendants) for breach of contract and associated guarantees. The dispute centred on a contract for the lease of equipment between GC and LS, with Bhalla providing personal guarantees for LS's obligations under the contract. The matter was heard in the Federal Circuit Court of Australia.

The legal issues that the court needed to address were whether GC was entitled to the amounts claimed under the lease agreement, whether the personal guarantees provided by Bhalla were valid and enforceable, and whether the cross claim brought by LS against GC for damages was substantiated. The court also needed to determine the costs of the proceedings.

The court found in favour of GC on all counts. It held that LS had breached the lease agreement and was liable to GC for the amounts claimed. The guarantees provided by Bhalla were enforceable, and he was liable for the amounts that LS owed to GC. The court dismissed LS's cross claim, finding no basis for the alleged damages against GC. Consequently, GC was awarded a verdict and judgment against both LS and Bhalla for the amounts owing under the contract and the guarantees. The court also ordered that LS and Bhalla pay GC's costs of the proceedings, including the costs of the dismissed cross claim.

Orders

Orders of the court

(1) GC is entitled to a verdict and judgment against:

(a) LS for the amounts owing under the Agreement and claimed in the ASC; and

(b) Bhalla for the amounts for which LS is liable to GC under the Agreement pursuant to the Guarantee;

(2) The Cross Claim stands to be dismissed;

(3) GC is entitled to an order that LS and Bhalla pay its costs of the proceedings, including the Cross Claim.

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.

Medium Neutral Citation:	GC Leasing Sydney Pty Ltd v Language Smart Pty Ltd [2022] NSWLC 12
Hearing dates:	18 November 2021
Date of orders:	1 February 2022
Decision date:	01 February 2022
Jurisdiction:	Civil
Before:	Shields LCM
Decision:	(1) GC is entitled to a verdict and judgment against: (a) LS for the amounts owing under the Agreement and claimed in the ASC; and (b) Bhalla for the amounts for which LS is liable to GC under the Agreement pursuant to the Guarantee; (2) The Cross Claim stands to be dismissed; (3) GC is entitled to an order that LS and Bhalla pay its costs of the proceedings, including the Cross Claim.
Legislation Cited:	Competition and Consumer Act 2010 (Cth), Sch 2 - Australian Consumer Law, ss 60 to 61, 278 to 282 Conveyancing Act 1919 (NSW), s 38 Property Law Act 1958 (Vic), ss 73 to 73B
Cases Cited:	Beesly v Hallwood Estates Ltd [1960] 2 All ER 314; [1960] 1 WLR 549 Ex parte Ryrie [1983] 2 Qd R 194 Howard F. Hudson Pty Ltd v Ronayne (1972) 126 CLR 449 Interchase Corp Ltd (in liq) v Cmr of Stamp Duties (Qld) (1993) 27 ATR 154; 93 ATC 5120 Keith v Pratt (1862) 10 WR 296 Lady Naas v Westminster Bank Ltd [1940] AC 366; [1940] 1 All ER 485; (1940) 109 LJ Ch 138; (1940) 162 LT 277 McKinlay v Dodds (1984) 3 BPR 9259 Reid Murray Holdings Ltd (in liq) v David Murray Holdings Pty Ltd (1972) 5 SASR 386 Scook v Premier Building Solutions Pty Ltd (2003) 28 WAR 124; [2003] WASCA 263 Wardley Australia Ltd v McPharlin (1984) 3 BPR 9500 Xenos v Wickham (1867) LR 2 HL 296
Category:	Principal judgment
Parties:	GC Leasing Sydney Pty Ltd – Plaintiff / Cross Defendant Language Smart Pty Ltd –First Defendant / Cross Claimant Shivam Bhalla – Second Defendant
Representation:	Counsel: Ms E. Keynes of Counsel, for the Plaintiff Mr. V. Mishra, Solicitor, for the Defendants Solicitors: O’Neill Partner - Plaintiff Ajay Singh - Defendants
File Number(s):	2020/001174742
Publication restriction:	NIL