Islam v McCarrolls of Moss Vale Pty Ltd

Islam was the director of a company that owned a vehicle which was wrongfully repossessed by McCarrolls of Moss Vale Pty Ltd. Islam sought to join as a second plaintiff in proceedings against McCarrolls in the District Court of New South Wales, but the liquidator of the company declined to bring or carry on the proceedings. Islam then commenced an application seeking an order for summary dismissal of the proceedings, as well as an order for indemnity costs based upon the liquidator’s non-acceptance of a rules offer. Islam also sought a gross lump sum order for costs. McCarrolls opposed the application and argued that the court did not have jurisdiction to consider Islam’s complaint against the conduct of the liquidator. The court considered whether Islam had standing to bring the proceedings and whether the court had jurisdiction to hear the complaint against the liquidator. The court found that Islam did have standing to bring the proceedings in relation to the wrongful repossession of the vehicle. The court also found that it had jurisdiction to hear Islam’s complaint against the conduct of the liquidator. The court dismissed the proceedings for summary judgment and ordered that McCarrolls pay Islam’s costs on an indemnity basis. The court also ordered that McCarrolls pay Islam a gross lump sum of $15,000 for his costs.