Dresna Pty Ltd, In the matter of Linknarf Management Services Pty Ltd (In Liq) v Linknarf Management Services Pty Ltd (In Liq) [2006] FCA 769 (20 June 2006)

Dresna Pty Ltd, In the matter of Linknarf Management Services Pty Ltd (In Liq) v Linknarf Management Services Pty Ltd (In Liq) [2006] FCA 769

CORPORATIONS – appeal from decision of defendants’ liquidator rejecting formal proof of debt or claim – order sought requiring liquidator to allow proof of debt for such sum as may be awarded to first plaintiff against defendants in another proceeding – first plaintiff subsequently unsuccessful in other proceeding – plaintiffs therefore unable to succeed in this proceeding

Corporations Act 2001 (Cth), s 1321

IN THE MATTER OF LINKNARF MANAGEMENT SERVICES PTY LTD (IN LIQ) (ACN 000 052 077) and LINKNARF LIMITED (IN LIQUIDATION) (ACN 000 929 902)

DRESNA PTY LTD (ACN 097 346 784), DEVYNOCK PTY LTD (ACN 006 395 777), GLENVILLE BUILDINGS PTY LTD (ACN 004 433 372), JALBERN PTY LTD (ACN 078 937 989), LE-ROSE NOMINEES PTY LTD (ACN 004 865 212), LOCKWOOD PARK PTY LTD (ACN 006 554 918), ULTINEL PTY LTD (ACN 006 179 977), VULKAN PTY LTD (ACN 089 324 247), LEO WILLIAM BLAKE and ROSE MAUREEN BLAKE v LINKNARF MANAGEMENT SERVICES PTY LTD (IN LIQUIDATION) (ACN 000 052 077) and LINKNARF LIMITED (IN LIQUIDATION) (ACN 000 929 902)

VID 3267 OF 2002

WEINBERG J
20 JUNE 2006
MELBOURNE

IN THE MATTER OF LINKNARF MANAGEMENT SERVICES PTY LTD (IN LIQ) (ACN 000 052 077) and LINKNARF LIMITED (IN LIQUIDATION) (ACN 000 929 902)

BETWEEN:	DRESNA PTY LTD (ACN 097 346 784) FIRST PLAINTIFF DEVYNOCK PTY LTD (ACN 006 395 777) SECOND PLAINTIFF GLENVILLE BUILDINGS PTY LTD (ACN 004 433 372) THIRD PLAINTIFF JALBERN PTY LTD (ACN 078 937 989) FOURTH PLAINTIFF LE-ROSE NOMINEES PTY LTD (ACN 004 865 212) FIFTH PLAINTIFF LOCKWOOD PARK PTY LTD (ACN 006 554 918) SIXTH PLAINTIFF ULTINEL PTY LTD (ACN 006 179 977) SEVENTH PLAINTIFF VULKAN PTY LTD (ACN 089 324 247) EIGHTH PLAINTIFF LEO WILLIAM BLAKE NINTH PLAINTIFF ROSE MAUREEN BLAKE TENTH PLAINTIFF
AND:	LINKNARF MANAGEMENT SERVICES PTY LTD (IN LIQUIDATION) (ACN 000 052 077) FIRST DEFENDANT LINKNARF LIMITED (IN LIQUIDATION) (ACN 000 929 902) SECOND DEFENDANT
JUDGE:	WEINBERG J
DATE OF ORDER:	20 JUNE 2006
WHERE MADE:	MELBOURNE

Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE MATTER OF LINKNARF MANAGEMENT SERVICES PTY LTD (IN LIQ) (ACN 000 052 077) and LINKNARF LIMITED (IN LIQUIDATION) (ACN 000 929 902)

BETWEEN:

DRESNA PTY LTD (ACN 097 346 784)
FIRST PLAINTIFF

DEVYNOCK PTY LTD (ACN 006 395 777)
SECOND PLAINTIFF

GLENVILLE BUILDINGS PTY LTD (ACN 004 433 372)
THIRD PLAINTIFF

JALBERN PTY LTD (ACN 078 937 989)
FOURTH PLAINTIFF

LE-ROSE NOMINEES PTY LTD (ACN 004 865 212)
FIFTH PLAINTIFF

LOCKWOOD PARK PTY LTD (ACN 006 554 918)
SIXTH PLAINTIFF

ULTINEL PTY LTD (ACN 006 179 977)
SEVENTH PLAINTIFF

VULKAN PTY LTD (ACN 089 324 247)
EIGHTH PLAINTIFF

LEO WILLIAM BLAKE
NINTH PLAINTIFF

ROSE MAUREEN BLAKE
TENTH PLAINTIFF

AND:

LINKNARF MANAGEMENT SERVICES PTY LTD (IN LIQUIDATION) (ACN 000 052 077)
FIRST DEFENDANT

LINKNARF LIMITED (IN LIQUIDATION) (ACN 000 929 902)
SECOND DEFENDANT

1 This is an appeal by the plaintiffs pursuant to s 1321 of the Corporations Act 2001 (Cth) against a decision of the defendants’ liquidator rejecting a formal proof of debt or claim. The plaintiffs seek an order reversing that decision, and an order requiring the liquidator to allow the proof of debt for such sum as may be awarded against the defendants to the first plaintiff in a proceeding commenced in the Supreme Court of Victoria (2090 of 2001). That proceeding was subsequently transferred to this Court (VID 909 of 2002), and will be referred to as "the principal proceeding".

2 The first to eighth plaintiffs are all companies associated with Mr Leo Blake, the ninth plaintiff. The tenth plaintiff is Mr Blake’s wife.

3 This proceeding was also originally commenced in the Supreme Court of Victoria on 23 September 2002. Both this proceeding and the principal proceeding were transferred to this Court on 13 December 2002, and were to be dealt with by the same judge. Accordingly, both matters were docketed to me.

4 The principal proceeding has taken some years to resolve. Ultimately, it involved Dresna Pty Ltd, the first plaintiff in this proceeding, suing the defendants for breach of contract, breach of fiduciary duty, and misleading or deceptive conduct under s 52 of the Trade Practices Act 1974 (Cth). All the plaintiffs in this proceeding were originally applicants in the principal proceeding as well. However, following an amendment to the statement of claim in the principal proceeding, all applicants, other than Dresna Pty Ltd, were removed.

5 I gave final judgment in the principal proceeding on 12 May 2006, dismissing the application: see Dresna Pty Ltd v Linknarf Management Services Pty Ltd (In Liq) [2006] FCA 540. This appeal has effectively been sitting in abeyance, awaiting the outcome of the principal proceeding, since being transferred to this Court.

6 Having regard to the findings I made in the principal proceeding, and the fact that the plaintiffs’ claim in this appeal was predicated on the first plaintiff being awarded a sum of damages in the principal proceeding, the plaintiffs cannot succeed in this claim.

7 Accordingly, the liquidator’s decision must be confirmed and the appeal must be dismissed, with costs.

Counsel for the Plaintiffs:	Mr R.M. Garratt QC and Mr M.K. Moshinsky

Solicitor for the Plaintiffs:	Foster Harris

Counsel for the Defendants:	Mr M.J. Colbran QC and Mr G.J. Fitzgerald

Solicitor for the Defendants:	Home Wilkinson Lowry

Date of Judgment:	20 June 2006

1.	The liquidator’s decision rejecting a formal proof of debt or claim be confirmed.
2.	The appeal be dismissed.
3.	The plaintiffs pay the defendants’ costs.
4.	These orders be stayed for a period of twenty-one days from the date of publication of these reasons for judgment.

IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY	VID 3267 OF 2002

JUDGE:	WEINBERG J
DATE:	20 JUNE 2006
PLACE:	MELBOURNE

Federal Court of Australia

Dresna Pty Ltd, In the matter of Linknarf Management Services Pty Ltd (In Liq) v Linknarf Management Services Pty Ltd (In Liq) [2006] FCA 769 (20 June 2006)