Trevor (Liquidator) v Evans

Case [2017] FCAFC 36


FEDERAL COURT OF AUSTRALIA

Trevor (Liquidator) v Evans [2017] FCAFC 36

Appeal from: Trevor, in the matter of Bell Group NV (in liq) [2016] FCA 851
File number(s): NSD 1293 of 2016
Judge(s): MIDDLETON, JAGOT AND WIGNEY JJ
Date of judgment: 24 February 2017
Catchwords: PRACTICE AND PROCEDURE – extension of time to discharge examination summons – arguable case of abuse of process – leave to appeal – no doubt about decision below – no injustice – leave refused
Legislation:

Corporations Act 2001 (Cth) ss 596B, 596C

Federal Court of Australia Act 1976 (Cth) s 24

Bell Group Companies (Finalisation of Matters and Distribution of Proceeds) Act 2015 (WA)

Cases cited:

Adam P Brown Male Fashions Pty Ltd v Philip Morris Inc (1981) 148 CLR 170

Décor Corporation Pty Ltd v Dart Industries Inc [1991] FCA 655; (1991) 33 FCR 397

Evans v Wainter Pty Ltd [2005] FCAFC 114; (2005) 145 FCR 176

House v The King (1936) 55 CLR 499

Lucic v Nolan (1982) 45 ALR 411

Simionato & Farrugia v Macks & Macks (1996) 19 ACSR 34

Date of hearing: 24 February 2017
Registry: New South Wales
Division: General Division
National Practice Area: Commercial and Corporations
Sub-area: Corporations and Corporate Insolvency
Category: Catchwords
Number of paragraphs: 37
Counsel for the Applicant: Norman O’Bryan SC with Anthony D’Arcy
Solicitor for the Applicant: Lipman Karas
Counsel for the Respondents: Noel Hutley SC with Imtiaz Ahmed
Solicitor for the Respondents: Jones Day

ORDERS

NSD 1293 of 2016
BETWEEN:

GARRY TREVOR IN HIS CAPACITY AS LIQUIDATOR OF BELL GROUP ARBN 073 576 502

Applicant

AND:

PAUL DOMINIC EVANS

First Respondent

DAVID HARGREAVES

Second Respondent

BRUCE MEREDITH (and another named in the Schedule)

Third Respondent

JUDGES:

MIDDLETON, JAGOT AND WIGNEY JJ

DATE OF ORDER:

24 FEBRUARY 2017

THE COURT ORDERS THAT:

1.The application for leave to appeal be dismissed.

2.The applicant pays the respondents’ costs, as agreed or taxed.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT

MIDDLETON J:

  1. I agree with the reasons of Justice Jagot.

I certify that the preceding one (1) numbered paragraph is a true copy of the Reasons for Judgment herein of the Honourable Justice Middleton.

Associate:

Dated:        9 March 2017

REASONS FOR JUDGMENT

JAGOT J:

  1. This is an application for leave to appeal against the orders made by the primary judge granting the respondents an extension of time to seek to discharge examination summonses, and ordering that access to the affidavit in support of the application for issue of the summonses be granted to the respondents, as provided for in s 596C(2) of the Corporations Act 2001 (Cth). The orders were consequential on the primary judge’s reasons for judgment in Trevor, in the matter of Bell Group NV (in liq) [2016] FCA 851.

  2. As the respondents submitted, the judgment is properly characterised as an interlocutory discretionary judgment on a matter of practice and procedure, which explains why leave to appeal is required…

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AGLC
Trevor (Liquidator) v Evans [2017] FCAFC 36
Case
[2017] FCAFC 36
Decision Date

CaseChat Overview and Summary

Trevor, as liquidator of a company, sought to discharge an examination summons issued against Evans. The summons was intended to compel Evans to provide information regarding his financial dealings. The dispute arose from the liquidator's application to the court to extend the time within which the summons could be discharged, given the complexity of the information sought. The Federal Court was the tribunal tasked with deciding the application.

The court was required to determine whether the application for an extension of time was an arguable case of abuse of process and whether leave to appeal should be granted. The legal issue hinged on whether the applicant had demonstrated that the decision to refuse the extension of time was wrong, and whether there was any potential for injustice if the appeal was not heard.

The court found that the application for an extension of time to discharge the summons was not an arguable case of abuse of process. The liquidator had not shown that there was no doubt about the correctness of the decision below, nor had they demonstrated that there was a potential for injustice if the appeal was not heard. Consequently, the court refused to grant leave to appeal. The court reasoned that the decision to refuse the extension of time was sound and that there was no merit in the application for leave to appeal.

The court dismissed the application for leave to appeal and ordered that the applicant pay the respondents’ costs, as agreed or taxed. This decision underscored the importance of demonstrating a genuine arguable case for leave to appeal and the limited circumstances in which such leave will be granted, particularly in matters involving the discharge of examination summonses.

Orders

Orders of the court

1. The application for leave to appeal be dismissed.

2. The applicant pays the respondents’ costs, as agreed or taxed.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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