Sora and Sora & Ors

This matter concerned an application heard by Justice Ferguson in the Supreme Court of Victoria. The application was brought by the third respondent and Mrs Soratis, who sought leave to commence proceedings. The core of the dispute involved a debt owed by P Pty Ltd to R Pty Ltd, and the applicants' desire to pursue recovery of this debt, which they contended would likely result in the sale of P Pty Ltd's business.

The primary legal issue before the court was whether to grant leave to the third respondent and Mrs Soratis to commence proceedings. This involved determining whether the proposed action was in the best interests of R Pty Ltd, whether it constituted an abuse of process, and whether the applicants had acted in good faith. The court also considered the applicants' submission that without leave, they would have no other avenue to pursue the debt recovery due to a deadlock within R Pty Ltd.

Justice Ferguson dismissed the application, finding that while there was a serious question to be tried regarding the debt owed by P Pty Ltd, she was not satisfied that granting leave was in the best interests of R Pty Ltd. Her Honour reasoned that the dispute was fundamentally between Ms Soratis, her sons, and Mr Sora, rather than a genuine concern for R Pty Ltd's interests. The court found it artificial to view the application as solely driven by R Pty Ltd's need to recover a debt, especially given a long-standing arrangement for P Pty Ltd to retain the funds and Ms Soratis's refusal to permit borrowing. Furthermore, her Honour did not accept that the applicants had no other remedy if leave was not granted, suggesting alternative avenues might exist within R Pty Ltd to address the deadlock.