Prasad v Sangha

Case [2012] NSWCA 92


Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Prasad v Sangha [2012] NSWCA 92
Hearing dates:5 April 2012
Decision date: 19 April 2012
Before: Meagher JA at [1]
Bergin CJ in Eq at [20]
Sackville AJA at [21]
Decision:

(1) Appeal dismissed.

(2) Order the appellant to pay the respondent's costs of the appeal.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Catchwords: RESTITUTION - appellant paid moneys to respondent - claim to recover as paid under a mistake of fact or for total failure of consideration-alleged paid under an agreement for transfer by respondent of an interest in a restaurant business - agreement alleged to have been made by agent - agency and agreement denied - respondent used moneys to discharge liabilities - whether unjust for respondent to retain payment
Cases Cited: Attorney-General for Ceylon v Silva [1953] AC 461 at 479
Australia & New Zealand Banking Group Ltd v Westpac Banking Corporation [1988] HCA 17; (1988) 164 CLR 662
David Securities Pty Ltd v Commonwealth Bank of Australia [1992] HCA 48; (1992) 175 CLR 353
Fox v Percy [2003] HCA 22; (2003) 214 CLR 118
Lipkin Gorman v Karpnale Ltd [1988] UKHL 12; [1991] 2 AC 548
Pacific Carriers Ltd v BNP Paribas [2004] HCA 35; (2004) 218 CLR 451
Roxborough v Rothmans of Pall Mall Australia Ltd [2001] HCA 68; (2001) 208 CLR 516
Category:Principal judgment
Parties: Ambrika Prasad (Appellant)
Selvey Sangha (Respondent)
Representation: Counsel:
A R R Vincent (Appellant)
S J Harben SC (Respondent)
Solicitors:
Smythe Wozniak Legal, St Marys (Appellant)
Mason Lawyers, Newcastle (Respondent)
File Number(s):CA 2009/332345
 Decision under appeal 
Citation:
Prasad v Sangha
Date of Decision:
2011-03-31 00:00:00
Before:
Delaney DCJ
File Number(s):
DC 80 of 2009

Judgment

  1. MEAGHER JA: On 8 September 2006 the appellant transferred $150,000 into a bank account of the respondent. That money was paid at the request of a Mr Goodarzi with whom the appellant had been negotiating for the purchase of an interest in a restaurant business known as Bar-Chello in Darby Street, Cooks Hill. The appellant never received an interest in that restaurant business and sought to recover the $150,000 from the respondent in proceedings in the District Court.

  1. The appellant did so on two bases. The first was for total failure of consideration. He alleged that the respondent, by her agent Mr Goodarzi, had agreed to sell an interest in the restaurant business to the appellant for $150,000. Any such contract was never performed and on that basis it was said that there had been a total failure of consideration entitling the appellant to…

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Prasad v Sangha [2012] NSWCA 92
Case
[2012] NSWCA 92
Decision Date

CaseChat Overview and Summary

In *Prasad v Sangha*, the appellant sought to recover moneys paid to the respondent, alleging the payments were made under a mistake of fact or for a total failure of consideration. The appellant contended the moneys were paid pursuant to an agreement for the respondent to transfer an interest in a restaurant business, an agreement and the agency through which it was allegedly made being denied by the respondent. The respondent had used the moneys to discharge liabilities. The case was heard in the Court of Appeal of New South Wales.

The central legal issues before the Court of Appeal were whether the appellant had established a claim for restitution based on either a mistake of fact or a total failure of consideration, and whether, in the circumstances, it would be unjust for the respondent to retain the payment. This involved determining the existence and terms of any alleged agreement, and the validity of the agency claimed by the appellant.

The Court of Appeal, comprising Meagher JA, Bergin CJ in Eq, and Sackville AJA, dismissed the appeal. The reasoning of the Court, though not detailed in the provided text, ultimately concluded that the appellant had not succeeded in establishing the necessary elements for a claim in restitution. The Court ordered the appellant to pay the respondent's costs of the appeal.

Orders

Orders of the court

(1) Appeal dismissed.

(2) Order the appellant to pay the respondent's costs of the appeal.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

BERGIN CJ

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Ratio Decidendi

Legal Principle Established

Established by: BERGIN CJ

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