KR Properties Global Pty Ltd (ACN 602 693 729) t/as AK Properties Group (ABN 62 971 068 965) v Kazzi

KR Properties Global Pty Ltd, trading as AK Properties Group, sought a freezing order against Mr Kazzi. The dispute arose in the context of an appeal and cross-appeal where judgment had been reserved. The primary concern for KR Properties Global Pty Ltd was that Mr Kazzi had entered into a contract for the sale of his only significant asset, raising fears of dissipation of assets. The application for the freezing order was heard by Mitchelmore JA.

The central legal issue before the court was whether the circumstances warranted the exercise of discretion to grant a freezing order. This involved determining if there was a real risk that Mr Kazzi would dissipate his assets, thereby frustrating any potential judgment that might be awarded to KR Properties Global Pty Ltd upon the determination of the reserved appeal and cross-appeal. The court also considered the implications of the costs order below and the potential increase of the judgment sum on the cross-appeal.

Mitchelmore JA considered the undertakings provided by KR Properties Global Pty Ltd, including the usual undertaking as to damages, and other specific undertakings detailed in Schedule A of the annexed orders. The court found that these undertakings, coupled with the circumstances presented, justified the exercise of its discretion. The undertaking previously given by Mr Kazzi's solicitors was discharged, and orders were made on the terms specified in Annexure A. The cross-respondent, Mr Kazzi, was ordered to pay the cross-appellants’ costs of a specific notice of motion. Liberty was granted to apply on short notice, and the orders were to be entered forthwith.