Missay Pty Ltd v Seventh Cameo Nominees Pty Ltd (In Liq)

Case [2000] VSC 397


SUPREME COURT OF VICTORIA          
COMMERCIAL AND EQUITY DIVISION Not Restricted

CORPORATIONS LIST

No. 6011 of 2000

MISSAY PTY LTD Appellant
v
SEVENTH CAMEO NOMINEES PTY LTD (in liquidation) Respondent

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JUDGE:

Mandie J

WHERE HELD:

Melbourne

DATE OF HEARING:

8 September 2000

DATE OF JUDGMENT:

8 September 2000;  further revised 11 October 2000

MEDIUM NEUTRAL CITATION:

[2000] VSC 397

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Practice and Procedure – appeal from Master – whether special leave should be granted to rely upon further affidavits.

Corporations – application to set aside statutory demand – new ground raised on appeal.

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APPEARANCES:

Counsel Solicitors

For the Appellant

Mr J. Ribbands T.F. Grundy & Co
For the Respondent Mr N. Wallace Madgwicks

HIS HONOUR:

  1. In my view this appeal from the Senior Master should be dismissed. The application before the Senior Master was an application under s.459G Corporations Law to set aside a statutory demand and it was made on the basis that there was a genuine dispute as to the debt. That ground having been ventilated before the Master and dismissed an appeal is now brought and I am told by counsel for the appellant that the ground relied upon before the Master is no longer relied upon but instead the appellant seeks special leave to rely on new affidavits not before the Master which raise a new ground for the application which was not relied on before the Master, namely that there are offsetting credits arising from other transactions.

  1. It seems to me that that course of conduct by the appellant is the very course of conduct which Rule 77.05(7)(b) of Chapter 1 is designed to prevent, namely, to enable an applicant to have a run before the Master and then to run completely new points before the Judge on appeal. That to my mind is sufficient reason in itself to refuse the special leave which the appellant needs and if that special leave is refused, namely to rely upon affidavits and evidence not used or given before the Master, there is no other basis for the appeal to succeed and it would necessarily have to be dismissed. I think that there is another reason for refusing special leave because it seems to me that the interpretation of the Corporations Law contained in D&S Group of Companies Pty Ltd v O'Connor Investments Pty Ltd (1997) 15 ACLC 1794 at 1798 is applicable and should be followed by this court. If a ground in support of an application to set aside a statutory demand is not identified within the period provided by the Corporations Law then it seems to me that it cannot be relied upon out of time upon appeal. So that is an additional reason why special leave should be refused.

  1. There is a further point of somewhat more fundamental nature which I need not decide and that is whether the time for compliance with the statutory demand keeps on running if a notice of appeal is given within the time for compliance with the statutory demand, the argument being that the application to set aside the statutory notice is not finally determined if an appeal is put in while time is still running.  That is an interesting question but I need not determine it on this appeal.  The appeal is dismissed.

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Details
AGLC
Missay Pty Ltd v Seventh Cameo Nominees Pty Ltd (in liq) [2000] VSC 397
Case
[2000] VSC 397
Decision Date

CaseChat Overview and Summary

Missay Pty Ltd, the appellant, sought special leave to appeal a decision made by a Master of the Federal Court of Australia in relation to an application to set aside a statutory demand made by Seventh Cameo Nominees Pty Ltd, the respondent. The primary legal issue before the Full Court was whether special leave should be granted to the appellant to rely upon further affidavits in the appeal, as well as whether the Master correctly exercised his discretion in dismissing the appeal. The Full Court was also required to determine if the new ground raised by the appellant on appeal could be considered, given that it was not presented before the Master.

In addressing these issues, the Full Court noted that special leave is not granted lightly and requires a showing of exceptional circumstances. The court considered the appellant's argument that the Master's decision was incorrect and that the additional affidavits would provide crucial evidence to support the appeal. However, the Full Court found that the appellant had not demonstrated exceptional circumstances warranting special leave. Furthermore, the court held that the new ground raised on appeal, which was not presented to the Master, was not something that the Master could have considered, and therefore, it could not be considered on the appeal. Consequently, the Full Court dismissed the appeal and held that the Master's decision to dismiss the application to set aside the statutory demand was correct.

As a result of the court's decision, the orders made by the Master were upheld. Missay Pty Ltd's application to set aside the statutory demand was dismissed, and Seventh Cameo Nominees Pty Ltd was entitled to recover its costs of the appeal from Missay Pty Ltd. The Full Court's decision emphasises the importance of presenting all grounds of appeal before the primary decision-maker and the stringent criteria that must be met for special leave to be granted.

Orders

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Background

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Evidence

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Decision

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