Qureshi v Commonwealth Bank of Australia

The appellant, Qureshi, appealed a decision of the Supreme Court of New South Wales concerning his liability to the Commonwealth Bank of Australia. The dispute arose from moneys advanced by the Bank to a company under a receivables finance facility. The Bank alleged that it was induced to lend these moneys due to various documents provided by Qureshi, an accountant, relating to the company's finances, and that these documents were misleading and deceptive, constituting negligent and fraudulent conduct.

The Court of Appeal was required to determine whether Qureshi was liable to the Bank for losses incurred as a result of his conduct in providing accountant's reports and other financial documents. Specifically, the court considered the extent of Qureshi's responsibility for these documents, the Bank's reliance on them, and whether the Bank could recover funds received by Qureshi out of moneys advanced to fraudsters for accountancy fees, which the Bank claimed were advanced by mistake. The court also had to consider the consequences of Qureshi being made bankrupt after the Court of Appeal had reserved its decision.

The Court of Appeal found that Qureshi was indeed liable to the Bank. The court reasoned that the Bank had relied on the financial information provided by Qureshi, which was found to be misleading and deceptive. This reliance induced the Bank to advance funds, leading to its losses. The court applied principles of negligence and misleading and deceptive conduct under the *Trade Practices Act 1974* (Cth) (now the *Competition and Consumer Act 2010* (Cth)). The court also considered the principles of restitution concerning the recovery of moneys advanced by mistake. The fact that Qureshi was made bankrupt after the hearing did not alter his liability to the Bank.

The appeal was dismissed, and Qureshi was ordered to pay the costs of the appeal.