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[2026] NSWSC 1188
Supreme Court of NSW
2026-09-30
Meek J
Original judgment source is linked above.
Source: NSW Caselaw (www.caselaw.nsw.gov.au). Converted to plain text by ZoeLaw. Not the official version.
Medium Neutral Citation: Alamin v Islam [2026] NSWSC 1188
Hearing dates: 29 September – 3 October 2025
Date of orders: 30 September 2026
Decision date: 30 September 2026
Jurisdiction: Equity
Before: Meek J
Decision: I direct the parties to bring in short minutes of order to give effect to these reasons for judgment.
Catchwords: RECTIFICATION — Unique claim for rectification — The first case in New South Wales (and seemingly in Australia) advanced principally upon the contention that rectification of an instrument is justified on the basis of a common intention derived from a mutually perceived gestalt
COMMERCIAL VENTURES — Parties (P1 and D1) of Islamic faith established a business venture (through various corporate entities) for the acquisition, development and sale of land, for mutual profit, for the purpose of making such land available for purchase by members of the community compliant with Shariah Law — Relationship amongst business partners broke down mid-2020 — D1 in earlier proceedings sued P1 alleging various breaches of duty said to arise and oppressive conduct — Parties following settlement discussions in the context of a Court hearing, entered into a Settlement Deed — Settlement Deed required payment by P1 (and associated parties) to D1 of a Settlement Amount of $3.25 million by way of three instalments on specified dates (with time of the essence in respect of each payment) — No payments were made and D1 sought to enforce payments provided for under the Deed — P1 commenced these proceedings alleging Settlement Deed ought to be rectified inter alia to give effect to a gestalt understanding
RECTIFICATION — Rectification doctrines generally — Rectification in equity — Nature of the proof of common intention and the rationale for the doctrine — Whether there was common intention contrary to the wording of the Deed — Whether there is evidence of that intention
RECTIFICATION — Gestalt claim — Rectification principally advanced on the basis of an alleged mutual gestalt regarding the terms of the Settlement Deed — P1 claims that the instalment amounts and dates in respect of the Settlement Amount were not fixed nor time essential, but rather predicated upon and inextricably tied to completion by the plaintiffs of the purchase of two properties at Leppington (11 & 82 Woolgen) and co-operation by D1 to allow that to occur — P1 contends that the common intention mutual gestalt with D1 is based on their past experience of how projects were progressed and financed (in light of alleged fiduciary duties and implied duties of good faith conduct and cooperation), and extended to D1 being obliged to lift the PPSR charge to allow Mr Alamin to purchase 11 Woolgen — Whether a common intention established from a mutual perceived gestalt — Held no mutual gestalt amounting to a proved common intention established
EQUITY — Fiduciary relationships discussion regarding existence of fiduciary relationships — Fiduciary Duties — Scope and content of alleged fiduciary duties discussed — Nature of fiduciary duties whether only proscriptive or also prescriptive — Whether fiduciary duties owed — Whether fiduciary duties breached
CONSUMER LAW — Misleading and deceptive conduct — Role of silence and reasonable expectation of disclosure discussed
UNILATERAL MISTAKE — Basis for enlivening relief for unilateral mistake discussed — Discussion of proposition as to whether proposition that the existence of a fiduciary relationship more easily enlivens a claim for rectification
CONTRACTS — Claim for implication of implied terms — Discussion of duty of co-operation and duty to act in good faith
REMEDIES — Winding up — Buyout — Appointment of trustee under s66G Conveyancing Act
EVIDENCE — Discussion of rule in Browne v Dunn (1894) 6 R 67
WORDS & PHRASES — ‘gestalt’
Alamin
Islam
Legislation Cited: Civil Procedure Act 2005 (NSW)
Competition and Consumer Act 2010 (Cth)
Corporations Act 2001 (Cth)
Evidence Act 1995 (NSW)
Partnership Act 1891 (SA)
Cases Cited: Agip S.p.A. v Navigazione Alta Italia S.p.A. [1984] 1 Lloyds Report 353
Alamin v Islam [2023] NSWCA 326
Alamin v Islam [2023] NSWSC 701
Alcan Australia Ltd v Geraghty (Supreme Court (NSW), Young J, 8 October 1993, BC9302153, unrep)
Alcatel Australia Ltd v Scarcella (1998) 44 NSWLR 349
Anderson v Canaccord Genuity Financial Ltd (2023) 113 NSWLR 151; [2023] NSWCA 294
Australian Gypsum Ltd v Hume Steel Ltd (1930) 45 CLR 54
Australis Media Holdings Pty Ltd v Telstra Corp Ltd (1998) 43 NSWLR 104
Beach Petroleum NL v Kennedy (1999) 48 NSWLR 1; [1999] NSWCA 408
Bishopsgate Insurance Australia Ltd v Commonwealth Engineering (NSW) Pty Ltd [1981] 1 NSWLR 429
Botanical Water Technologies IP Ltd v Driver [2025] NSWCA 162
BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266
Breen v Williams (1996) 186 CLR 71
Browne v Dunn (1894) 6 R 67
Burger King Corp v Hungry Jack’s Pty Ltd (2001) 69 NSWLR 558; [2001] NSWCA 187
Bush v National Australia Bank Ltd (1992) 35 NSWLR 390
Byrne v Australian Airlines Ltd (1995) 185 CLR 410
Care A2 Plus Pty Ltd v Pichardo [2024] NSWCA 35
Carpenter v Morris (2023) 111 NSWLR 603; [2023] NSWCA 154
CGU Workers Compensation (NSW) Ltd v Garcia (2007) 69 NSWLR 680; [2007] NSWCA 193
Chan v Zacharia (1984) 154 CLR 178; [1984] HCA 36
Clayton v Clayton [2023] NSWSC 399
Commissioner of Taxation v PepsiCo Inc [2025] HCA 30; (2025) 424 ALR 294
Commonwealth Bank of Australia v Barker (2014) 253 CLR 169; [2014] HCA 32
Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) v Personnel Contracting Pty Ltd (2022) 275 CLR 165; [2022] HCA 1
Donau Pty Ltd v ASC AWD Shipbuilder Pty Ltd (2019) 101 NSWLR 679; [2019] NSWCA 185
Engadine Medical Imaging Services Pty Ltd atf The Engadine Unit Trust v Mena Ibrahim & Ors [2025] NSWCA 269
Estate Realties Ltd v Wignall [1991] 3 NZLR 482
ET-China.com International Holdings Ltd v Cheung [2021] NSWCA 24; (2021) 388 ALR 128
Fairfax Media Publications Pty Ltd v Gayle; The Age Company Pty Ltd v Gayle; The Federal Capital Press of Australia Pty Ltd v Gayle (2019) 100 NSWLR 155; [2019] NSWCA 172
Famestock Pty Ltd v The Body Corporate for No 9 Port Douglas Road [2013] QCA 35
Farrugia v The King [2026] HCA 28
Fox v Percy (2003) 214 CLR 118; [2003] HCA 22
Franklins Pty Ltd v Metcash Trading Ltd (2009) 76 NSWLR 603; [2009] NSWCA 407
Friend v Brooker (2009) 239 CLR 129; [2009] HCA 21
Grant v John Grant & Sons Pty Ltd (1954) 91 CLR 112; [1954] HCA 23
GWE v Commissioner of the Australian Federal Police (2020) 103 NSWLR 509; [2020] NSWCA 247
H Lundbeck A/S v Sandoz Pty Ltd (2022) 276 CLR 170; [2022] HCA 4
Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41
Howard v Federal Commissioner of Taxation (2013) 253 CLR 83; [2014] HCA 21
IDP 971 Richmond Pty Ltd v Xerri [2026] NSWCA 89
Igloo Homes Pty Ltd v Sammut Constructions Pty Ltd [2005] NSWCA 280
In the matter of Amin Property Group Pty Ltd; In the matter of Amin Homes Hadiqat Woolgen Pty Ltd; In the matter of Amin Homes Murooj Woolgen Pty Ltd [2023] NSWSC 1591
Jenyns v Public Curator (Qld) (1953) 90 CLR 113; [1953] HCA 2
Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8
Kronenberg v Macaulay [2025] NSWCA 195
Leibler v Air New Zealand Ltd [No 2] [1999] 1 VR 1
Maralinga Pty Ltd v Major Enterprises Pty Ltd (1973) 128 CLR 336
McKay v Dick (1881) 6 App Cas 251
McNamara v R (2023) 280 CLR 201; [2023] HCA 36
Mills v Dodds [2025] NSWSC 396
Mohammad Alamin v Hamidul Islam [2025] NSWSC 221
Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37
Muriti v Prendergast [2005] NSWSC 281
Naaman v Jaken Properties Australia Pty Ltd (2025) 281 CLR 635; [2025] HCA 1
Netdeen Pty Ltd t/as GJ Gardner Homes v Lindfield Pty Ltd [2025] NSWCA 196
New South Wales Medical Defence Union Limited v Transport Industries Insurance Company Limited (1986) 6 NSWLR 740
Newey v Westpac Banking Corporation [2014] NSWCA 319
Oneflare Pty Ltd v Chernih [2017] NSWCA 195
Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 149 CLR 191; [1982] HCA 44
Pharmacy Platform Pty Ltd v Millichamp [2025] NSWCA 213
Pilmer v Duke Group Limited (in liq) (2001) 207 CLR 165
Public Trustee v Smith [2008] NSWSC 397
Pukallus v Cameron (1982) 180 CLR 447
R v Neil [2002] 3 SCR 631
Rawack v Spicer [2002] NSWSC 849
Realestate.com.au Pty Ltd v Hardingham (2022) 277 CLR 115; [2022] HCA 39
Redenbach v Norris Bros Pty Ltd [2025] NSWSC 765
Renard Constructions (ME) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234
Russell v The Trustees of the Roman Catholic Church for the Archdiocese of Sydney [2007] NSWSC 104
Ryledar Pty Ltd v Euphoric Pty Ltd (2007) 69 NSWLR 603; [2007] NSWCA 65
Sanmik Food Pvt Ltd v Alfa Laval Australia Pty Ltd [2025] NSWCA 7
Seymour Whyte Constructions Pty Ltd v Ostwald Bros Pty Ltd (in liquidation) (2019) 99 NSWLR 317; [2019] NSWCA 11
Simic v New South Wales Land and Housing Corporation (2016) 260 CLR 85; [2016] HCA 47
South Sydney District Rugby League Football Club Ltd v News Ltd (2000) 177 ALR 611; [2000] FCA 1541
South Sydney District Rugby League Football Club Ltd v News Ltd (2001) 111 FCR 456; [2001] FCA 862
Southern Real Estate Pty Ltd v Dellow (2003) 87 SASR 1; [2003] SASC 318
Stellar Vision Operations Pty Ltd v Hills Health Solutions Pty Ltd [2023] NSWCA 102
Stirling v Maitland (1864) 5 B & S 840; 122 ER 1043
Stormriders Pty Ltd v Copperart Pty Ltd [2004] NSWSC 809
Taylor v Johnson (1983) 151 CLR 422
The Adoption of Edmund (a pseudonym) [2024] NSWSC 803
The Juliana (1822) 2 Dods 504; 165 ER 1560
Tomanovic v Argyle HQ Pty Ltd [2010] NSWSC 152
United Dominions Corp Ltd v Brian Pty Ltd (1985) 157 CLR 1; [1985] HCA 49
Vodafone Pacific Ltd v MI Ltd [2004] NSWCA 15
WAM Active Limited v Keybridge Capital Limited (No 2) [2024] NSWSC 1496
West v Mead [2003] NSWSC 161; (2003) 13 BPR 24,431
Whittorn v Siu [2026] NSWSC 666
Xiao v BCEG International (Australia) Pty Ltd (2023) 111 NSWLR 132; [2023] NSWCA 48
Texts Cited: Austen, Jane, Persuasion (Ed. Gillian Beer) (Penguin Classics 2015)
Austen, Jane, Pride and Prejudice (Ed. James Kinsley) (Oxford Modern Classics 2008)
Austen, Jane, Sense and Sensibility (Ed. Ros Ballaster) (Penguin Classics 2014)
Dames, Nicholas, The Chapter: A Segmented History from Antiquity to the Twenty-First Century (Princeton UP 2024)
Eliot, George, Middlemarch, A Study of Provincial Life (New York: Penguin Books 2015)
Gleeson, Fabian, ‘Proscriptive and prescriptive duties: is the distinction helpful and sustainable, and if so, what are the practical consequences?’, Supreme Court Corporate and Commercial Law Conference, 15 November 2017
Heydon, J D, Cross on Evidence (11th ed, 2017, LexisNexis Butterworths)
Heydon, J D, MJ Leeming and PG Turner, Meagher, Gummow & Lehane’s Equity: Doctrines and Remedies (5th ed, 2014, LexisNexis)
Ittelson, W H, ‘Visual Space Perception’ (Springer Publishing Company 1969), LOCCCN 60-15818
Leeming, Mark, ‘The Limits of rectification’ (2023) 17 Journal of Equity 122
Ma, Jiayang, ‘A Study on Perceptual Design of Hierarchical Graphic Information in Interfaces Based on Gestalt Principles’ (2025) Applied Science 15(21), article 11327
Macquarie Dictionary, online ed, 2026
Mather, George, ‘Foundations of Sensation and Perception’ (3rd Ed Psychology Press 2016)
Mather, George, ‘Foundations of Sensation and Perception’ (4th Ed Psychology Press 2023)
Mohamed, Kareem and Adiloglu, Fatos, ‘Analyzing the Role of Gestalt Elements and Design Principles in Logo and Branding’ (2023) International Journal of Communication and Media Science 10(2)
Murphy, Terence Patrick, ‘Gestalt Patterns in the Novel: The Case of the Opening Chapter or Two in Jane Austen’ (2026) 40(8) Textual Practice 1121
Ong, Denis S K, Ong on Equity (2011, Federation Press)
Ong, Denis S K, Trusts Law in Australia (5th ed, 2018, Federation Press)
Oxford English Dictionary, online ed, 2026
Seddon, Nick, and Bigwood, Rick, Cheshire & Fifoot Law of Contract (LexisNexis Australia, online at February 2026)
Smith, Lionel, ‘Prescriptive Fiduciary Duties’ (2018) 37 University of Queensland Law Journal 262
Steingass, Francis Joseph, The Students Arabic-English Dictionary (W.H. Allen 1884)
Stevick, Phillip, ‘The Theory of Literary Chapters’ in Phillip Stevick Ed. ‘The Theory of the Novel’ (New York: The Free Press, 1967)
Story, Joseph, Commentaries on Equity Jurisprudence as Administered in England and America, ed Melville M Bigelow (Little, Brown, and Company, 13th ed, 1886)
Trevis, Walter, The Queen’s Gambit (Random House 1983)
Twain, Mark, The Adventures of Huckleberry Finn (Penguin 2009)
Waller, Robert James, The Bridges of Madison County (Penguin 2021)
Category: Principal judgment
Parties: Mohammad Alamin (First Plaintiff / First Cross-Defendant)
MSAA Family Pty Ltd atf the MSAA Family Trust (Second Plaintiff)
Hamidul Islam (First Defendant / Cross-Claimant)
Amin Homes Hadiqat Woolgen Pty Ltd (Second Defendant / Second Cross-Defendant)
Amin Homes Murooj Woolgen Pty Ltd (Third Defendant / Third Cross-Defendant)
MH Affordable Homes Pty Ltd (Fourth Defendant / Submitting Appearance)
MH Affordable Homes on Woolgen Park Pty Ltd (Fifth Defendant / Submitting Appearance)
MH Affordable Homes on Dickson Pty Ltd (Sixth Defendant / Submitting Appearance)
MH Affordable Homes on Kelly Pty Ltd (Seventh Defendant / Submitting Appearance)
MH Affordable Homes on Angle Vale Pty Ltd (Eighth Defendant / Submitting Appearance)
Amin Property Group Pty Ltd (Ninth Defendant / Fourth Cross-Defendant)
APGM Pty Ltd (Tenth Defendant / Fifth Cross-Defendant)
Representation: Counsel:
TD Castle SC with AJ Byrne and CM Egan (Plaintiffs / Cross-Defendants)
MR Elliott SC (First Defendant / Cross-Claimant)
Solicitors:
Kheir & Associates (Plaintiffs / Cross-Defendants)
McCabes Lawyers (First Defendant / Cross-Claimant)
File Number(s): 2023/00152391
Publication restriction: Nil
Introduction
Dolls and gestalts
What is gestalt?
Literature gestalt
Design gestalt
Gestalt as a means of seeking rectification
Overview of issues
Outcome
Factual and documentary concision
Parties and various proceedings
Parties
Business model
Projects and properties
Various proceedings
Representation
Settlement Deed
Hearing & procedural aspects
Appearances
Submissions
Claims and pleadings
Claims of a JV, Wind Down Understanding and Varied JV
JV (alleged)
Wind Down Understanding (alleged)
Varied JV (alleged)
Issues
Background
The “revised list”
Agreed issues
Issues as litigated
Construction of Settlement Deed
Rectification principles
The various rectification doctrines have different aspects and application
Rectification in equity
Nature of the proof of common intention and rationales for it
Joint ventures and fiduciary duties
Fiduciary relationships – existence
Fiduciary obligations – scope
Fiduciary obligations – character
Joint venturers
Termination
Misleading and deceptive conduct liability
Unilateral mistake
Implied terms
Duty of cooperation
Duty to act in good faith
Buyout and winding up
Evidence
Use of admissible evidence for equitable rectification
Surrounding circumstances
Standard of proof
Affidavits and rulings
Weighing of evidence
Credit and reliability of witnesses
Mr Alamin
Mr Islam
Browne v Dunn – alleged non-compliance
Mr Castle SC’s submissions
Mr Elliott SC’s response
The rule in Browne v Dunn
Determination
Further factual background
Loss of Boyd Street
11 Woolgen
2021 proceedings
Pre-hearing offers
Deed negotiations – 21 November 2022
Hearing commences
Adjournment
Initial negotiations (up to 6.43 pm)
Heads of Agreement (6.43pm)
Draft (8.53pm)
Draft (10.12pm)
Further negotiations – 22 November 2022
Parties’ evidence
Draft (9.22am)
Draft (12.47pm)
Email (1.03pm)
Draft (1.38pm)
Final draft (2.54pm)
Missing Version
Settlement Deed executed (c.3.30pm)
Mr Alamin’s evidence as to intention (and other matters)
Mr Islam’s knowledge and understanding
Mr Alamin’s evidence as to 11 Woolgen losses
Non-payment of Settlement Amount & charges registered
JV, Varied JV & Settlement Deed
Rectification (and contended gestalt)
Mr Castle SC’s submissions
Rectification – cl 4(b)
Rectification – cl 7
Context
Gestalt
Mr Elliott SC’s submissions
Rectification – cl 4(b)
Rectification – cl 7
Context
Gestalt
Reply
Determination
Unilateral mistake issue
Mr Castle SC’s submissions
Mr Elliott SC’s submissions
Determination
Implied term/contractual duties issue
Mr Castle SC’s submissions
Mr Elliott SC’s submissions
Determination
JV terms issue
Mr Castle SC’s submissions
Mr Elliott SC’s submissions
Determination
Fiduciary duties issue
Mr Castle SC’s submissions
Mr Elliott SC’s submissions
Determination
Breach/remedies issue
Mr Castle SC’s submissions
Mr Elliott SC’s submissions
Determination
Non-payment issue
Statement omission (ACL) issue
Mr Castle SC’s submissions
Mr Elliott SC’s submissions
Determination
Reliance/loss issue
Mr Castle SC’s submissions
Mr Elliott SC’s submissions
Determination
Winding up issue
Mr Castle SC’s submissions
Mr Elliott SC’s submissions
Reply
Determination
82 Woolgen issue
Conclusion
Relief
Costs and other relief
HIS HONOUR: Statistically, a connection between a Matryoshka doll and the concept of ‘gestalt’, one might think, is rare. Yet both were linked by the plaintiffs’ counsel in outlining the essence of a dispute in this matter between two gentlemen of the Islamic faith regarding their commercial arrangements. The rarity of their combination is matched by the proceedings having at its core a unique claim, being the first claim for rectification of a case in New South Wales (and seemingly in Australia) advanced principally upon the contention that rectification of an instrument (here a settlement deed) is justified on the basis of a mutually perceived gestalt between the gentlemen derived from their past dealings with one another.
The Matryoshka or nesting doll is said to be one of the most recognizable symbols of Russia, though the concept on one contestable view is said to have been inspired by the Japanese Fukurama doll [1] . The core concept is that a set of wooden dolls of decreasing size are placed one inside another, with the final doll being solid. The etymology matrëška is that of a ‘little matron’, ‘little mother’ [2] or ‘respectable lady’ [3] . Their symbolism is varied and includes manifesting ideas or notions of motherhood, fertility and connection between generations [4] .
Relevantly, the nesting aspect of the doll was deployed by counsel in this case to highlight his objective - distillation of an essence by divesting. He foreshadowed removing distracting outer layers (or vestments) of the case which presented as a complex dispute history within a “labyrinthine bundle”, to get to the central doll or main issue in dispute [5] .
The noun ‘gestalt*’* is a word of German origin with varied contextualised meanings. The core word conveys the meaning of “a ‘shape’, ‘configuration’ or ‘structure’ which as an object of perception forms a specific whole or unity incapable of expression simply in terms of its parts” [6] .
A mutual gestalt in this case is said to have arisen [7] between Mohammad Alamin (Mr Alamin) and Hamidul Islam (Mr Islam) (together the gentlemen). They are the principal individual parties in these proceedings, connected with one another and other corporate entities in dealings, the manner in which I will more particularly describe below.
However, in brief, through such entities they engaged in a number of property projects over the period 2015 to early to mid-2021. Their dealings with one another became fraught and have been the subject of litigation since then - a period of 5 years. In December 2021, Mr Islam commenced proceedings against Mr Alamin and various of the entities claiming relief regarding assets and operations of the projects (variously referred to as the ‘Islam proceedings’ and the ‘2021 proceedings’ - I will use the latter expression). The hearing of that claim commenced before Parker J on 21 November 2022. Following the start of that hearing the matter was adjourned and the parties in the balance of that day and the following day negotiated a resolution of their dispute, embodied in a deed of settlement and release between the gentlemen and various related parties dated 22 November 2022 (Settlement Deed or Deed) [8] . The Settlement Deed required payment by the Alamin Parties (see below) to Mr Islam of a Settlement Amount of $3.25 million by way of three instalments on specified dates (with time of the essence in respect of each payment) and with security, relevantly, a PPSR charge. No payments were made and Mr Islam sought to enforce payments provided for under the Deed.
Relevantly for these proceedings, Mr Alamin seeks rectification of the Settlement Deed and other associated relief. Precisely what mutual gestalt arose was not pleaded by Mr Alamin. The word does not appear in the pleadings and agreed issues, and nor is it used by Mr Alamin in the evidence in the case. I have attempted to capture the gist of the claim by reference to the written and oral submissions of his counsel. Essentially, Mr Alamin claims a common intention mutual gesta**lt with Mr Islam that the instalment amounts and dates in respect of the Settlement Amount were not fixed nor time essential, but rather predicated upon and inextricably tied to completion by the plaintiffs of the purchase of two properties at Leppington (defined below as 11 & 82 Woolgen) and co-operation by Mr Islam to allow that to occur. Mr Alamin contends that the common intention mutual gesta**lt with Mr Islam is based on their past experience of how their projects were progressed and financed and evolved through to the settlement process — to which I will return below (in light of alleged fiduciary duties and implied duties of good faith conduct and cooperation), and extended to Mr Islam being obliged to lift the PPSR charge to allow Mr Alamin to purchase 11 Woolgen (mutual gestalt) [9] .
This case points up important differences in what suffices in different realms of human existence not only to convey meaning between one another regarding how individuals reach consent or agreement to a particular matter or proposition.
Speech and textual expression are the principal means by which people convey their intent to one another. Such means are affected by context and culture. The coupling of speech and text may variously refine, accentuate or in some instances confuse meaning. A hallmark of successful communication is that the receiver understands what the sender intends to convey. Peter Drucker has famously remarked that “the most important thing in communication is to hear what isn’t being said” [10] .
Non-verbal and non-textual communication may include facial expression (e.g. smiles, nods, winks, frowns), proxemics (spacing), haptics (touch), posture, and oculesics (eye movement).
Particular considerations arise when people seek to discern meaning from non-textual communication such as speech, gestures and other cues between family members, business partners, friends or even strangers.
People who are familiar with one another (couples, family members, business partners, friends) often use such expressions or gestures to communicate. Between even strangers, gestures such as pointing or waving will often suffice to communicate and convey meaning. A nod may be enough to convey agreement.
Assent by means of perception of a mutual gestalt invites, nay necessitates, initially brief consideration and understanding of gestalt.
Both the Macquarie Dictionary Online and the Oxford English Dictionary Online give as a simple example of a gestalt a melody as distinct from the notes that make it up [11] . The noun per se is distinguishable from what is known as ‘gestalt principles’ being one of a set of principles (e.g. similarity, symmetry, closure and proximity) drawn from the tendency of people to organise visual elements into a unified whole [12] ; ‘gestalt psychology’ which is a school of psychology which holds that experiences and conduct do not occur through the summation of reflexes or other individual elements but through configurations called Gestalten, which operate individually or interact mutually [13] ; and ‘gestalt therapy’ which is a type of psychotherapy that relies on g**estalt psychology [14] .
Gestalt differs from context which is the setting, background or environment for an object or event [15] . We construe the particular meaning of the object or event by reference to its context.
Scientific and other literature has examined the means by which we perceive matters and things. The Gestalt school was founded on phenomenological observations [16] . Gestalt “laws” of perceptual organisation are predicated on inbuilt preferences for grouping into whole or patterns parts of images or data on the basis of certain visual properties [17] .
Practically, gestalt principles are harnessed in many areas of life. It suffices to mention two common life examples (unrelated to this case) to explain the concept, one from literature and another from the world of design, marketing, and advertising.
First, g**estalt patterns are seen and analysed in the realm of literature. Novels have the capacity to excite, engage and captivate bookworms and bibliophiles.
For some, reading for pure enjoyment is enough, and deeper analysis or thought is unwelcome or unnecessary. Mark Twain famously prefaced ‘The Adventures of Huckleberry Finn’ with a jesting cautionary note regarding over analysis, suggesting that persons attempting to find a motive, moral, or plot in the narrative would be the subject of repercussions, including prosecution and banishment [18] . Ironically, the cautionary note itself has given rise to considerable analysis and speculation as to its meaning, and the identity of the ‘Chief of Ordnance’ referenced in it.
For other readers, the discovery and descriptive unfolding of a tender moment, an entrancing scene or exquisite vision, evokes a sense of awe or rapture, perfect or ineffably sublime of itself, which would be degraded or debased by analysis.
In ‘The Bridges of Madison County’ Robert Kincaid [19] said “[a]nalysis destroys wholes. Some things, magic things, are meant to stay whole. If you look at their pieces, they go away.” Kincaid recalled a mundane act invoking a sensual moment as a perfect whole and analysis of why it was sensual was unimportant to him.
For some, literary patterns will emerge without any deliberative or contemplative thought, for others their suppositions as to the unfolding plot or analysis about motive or character development deepens and or enriches the immersive literary journey. Further, researchers, scholars and literary buffs seek to understand (for noble purposes) textual strategies employed in creating novelistic worlds [20] .
Chapter division (in and of itself) has been said to be a form of textual segmentation that articulates time [21] . Phillip Stevick suggests chapter division enables readers to draw upon their understanding of minor gestalt patterns and facilitate an understanding of the fiction as a whole which would be infinitely more difficult without division [22] .
Terence Murphy in an insightful article delves into an analysis of gestalt patterns of two female literary luminaries of the 19th century, Jane Austen and George Elliot [23] .
He advances a gestalt pattern of ‘Departure-Request-Hesitation’ which typically occurs following the sketching in of the novelistic opening itself. The opening involves the writer in the establishment of a Lost Time and a Zone of Temporal Acceleration in order to situate the moment of Narrative Now [24] . In relation to Austen he contends [25]
Two of Jane Austen’s comic novels, Sense and Sensibility (1811) and Persuasion (1817) are used to illustrate the basic gestalt pattern of Requesting and Hesitation, a third novel, Pride and Prejudice (1813), is used to illustrate a marked variant of the basic model, Arrival-Requesting- Hesitating, a pattern in which the full extent of the Lost Time is only indicated sketched in much later in the novel.
Interestingly, the analysis only half-confirms Stevick’s point about gestalt patterns and the chapter division. This is because on occasion this gestalt pattern continues on from the first to the second chapter, creating a range of possible reader responses, including heightened anticipation, strategic surprise and delated gratification.
Secondly, in the realm of design gestalt principles are used to explain what our minds do in instinctively organising visual information into patterns, unified wholes and structured forms. Terminology varies regarding the nomenclature used. G**estalt principles inform aspects of design and advertising with creators and professionals supposing that humans tend to: [27]
separate objects from the background – the figure ground principle;
group objects that are close together – the proximity principle;
group objects that look alike - the similarity principle;
follow continuous lines and curves (or perceive items on lines or curves as related) - the continuity principle;
complete or fill-in incomplete shapes - the closure principle;
see symmetrical elements as related - the symmetry principle;
connect items that are seen as grouped - the connectedness principle;
see parallel objects as belonging together - the parallelism principle;
link moving objects in the same direction - the common fate principle;
focus on contrasting elements - the focal point principle; and
simplify ambiguous or complex images – the prägnanz principle*.*
Effective use of gestalt principles may give rise to an ‘aha moment’ [28] . Some exemplars demonstrate the principles. By the figure ground principle we see text on the page of a book. Nearly everyone will focus on the text rather than the white background. The World Wide Fund for Nature (or ‘WWF’) logo of a giant panda’s body [29] is incomplete. By the closure principle many people unconsciously see or perceive the complete animal. The c**ommon fate principle is exemplified by a flock of birds, and the iconic album cover photo for The Beatles’ ‘Abbey Road’ [30] . Matching earrings show the symmetry principle. Food items displayed on a menu may typify the similarity principle. By the connectedness principle people intuitively relate items such as bullet points or drop-down menu items. By the prägnanz principle in the Olympic Games logo humans intuitively perceive overlapping circles instead of random curved lines [31] .
Self-evidently not all people will perceive all objects or data in the same way. Moreover, the percentage of people who tend to group or perceive objects in the same way will vary as between the various principles. The figure ground principle provides a classic example in Rubin*’*s vase (sometimes referred to as “The Two Face, One Vase Illusion”) which depicts the silhouette of a vase in black and the profiles of two inward-looking faces in white. Different people will at first blush focus on one or the other [32] .
In the realm of design and marketing past experience is regarded as an aspect of gestalt. Some designers view past experience as one of the gestalt principles. Match and Smietana suggest a past experience principle that humans interpret visuals based on prior knowledge, learned patterns, cultural backgrounds and past experiences [33] . They give a few examples. One is the shopping cart icon that usually sits in the top-right corner of an eCommerce site. They observe that most internet users will instantly understand its purpose because they have seen it many times before. However, they also highlight the limitations of the past experience principle. They indicate Microsoft Word’s “save” icon, a floppy disk is a symbol which may be unfamiliar to younger users who have never used the original technology [34] .
Others such as Jiayang Ma [35] suggest that past experience and knowledge is not merely an individual gestalt principle but is used to give consumers a perceptual sense of product use. Figma suggests past experience helps us interpret our environment in four key ways: namely through principles of emergence (seeing a whole before noticing its parts), reification (using familiar patterns or mental models to complete an image), multistability (perceiving objects in more than one way shifting between different views) and invariance (identifying similar objects even if their colour, scale, weight or angle differs) [36] .
The above cases of gestalt principles (expressly unrelated to this case) exemplify in a basic way how humans may perceive shapes or patterns from data, and points up the question of how past experience may inform or influence gestalt**s.
For the purposes of rectification the plaintiffs did not lead any expert or specialised evidence to explain or prove the type of gestalt contended for and the impact of past experience upon it. Instead, the notion that a common intention may be reached by parties perceiving a gestalt in a series of events was contended for by the plaintiffs by reference to that concept, as first raised by Campbell JA in Ryledar Pty Ltd v Euphoric Pty Ltd (2007) 69 NSWLR 603; [2007] NSWCA 65 (Ryledar) [37] , though I note Ryledar was not a case of rectification by gesta**lt.
His Honour expressed the view that in discerning a continuing common intention of parties to a negotiation, where intention is relevant to the terms in which they are prepared to contract with one another, it is necessary for each party to know enough of the other’s intentions for it to be said that there is a common intention. The means by which that might occur vary: it might be by direct statement, or through the various other means by which one person’s intention can become known to another person. In this context, his Honour raised the notion that contracting parties might mutually perceive matters in their dealings like an experienced surgeon, or experienced chess player, can sometimes see what another surgeon, or chess player, is seeking to do, in a way that an inexperienced person cannot [38] .
However, notwithstanding that particular individuals may share a common experience, not everyone perceives a gestalt in the same way.
Within law there are differing thresholds for findings of agreement or consent. For example, there is a particular rigour that the law requires in respect of consent in certain matters such as the law of adoption [39] .
Similarly there is a rigour regarding the equitable remedy of rectification. It has been said that “clear and convincing” proof is required to obtain relief [40] . The justification for granting the equitable remedy of rectification is in ‘mistake’ [41] and underpinning the Court’s intervention is the prevention of unconscientiousness [42] . Communication of that common intention need not be by express statement [43] , but it must established to be the parties’ true/actual intention mutually held, as viewed objectively from their words or actions [44] . That the common intention must be in some manner disclosed is consistent with the rationale on which rectification is granted [45] .
The rigour of the requirements for rectification pose an obstacle to a rectification based principally or even exclusively upon a gestalt.
First, the fact that capable and experienced people perceive matters in their fields of operation that others might not, or that people in a given situation with common experiences perceive the same matters, does not mean or compel the conclusion that they agree that a certain course of action must be taken.
The examples provided by Campbell JA point up the issue. Surgeons differ from chess players in a number of material respects. Pertinently [46] , experienced surgeons attending upon operation are not in competition with one another in the same way as chess players are. Thus, if two experienced surgeons are attending upon operation in which they are both working for the good of the patient and not in competition with one another they may both see what the other is doing, in a way that a third inexperienced surgeon viewing the operation or other nurse or assisting staff around the operating table cannot. Those two surgeons may perceive what each other are doing and not only that, but they might also agree that what is being done is beneficial and should occur or continue. However, experienced chess players in competition with one another (let’s say Bobby Fischer and Boris Spassky [47] or, for those who prefer fiction, Beth Harmon and Vasily Borgov [48] ) might perceive possible options for moves in a way that no other onlooker can, but they might not agree on what is beneficial and what should occur.
Secondly, observing an event (a chess game or surgery) on a single occasion and perceiving a gestalt within that event is one thing. Using a historic event or set of events as the basis for a gestalt said to impact a much later event after parties have fallen out with one another is more problematic.
Evident from what is set out below, the history of the involvement of the parties were said to be the outer layers of the Matryoshka dolls leading to the core inner doll being a settlement process resulting in the Settlement Deed [49] .
Essentially, the plaintiffs claim that the mode of operation and financing of property developments between the gentlemen in the few years leading up till early to mid-2021 (a time 22-16 months prior to the Settlement Deed) was said to found a gestalt between the gentlemen because they mutually agreed, and not merely considered, that there was flexibility in the timing for and financing of instalment payments under the Settlement Deed.
However, matters that form part of the context of a gestalt at a much earlier point of time even if then seminal, do not necessarily bear, hold or retain immutably enduring vital significance with the passing of time.
The lapsing of time is but one factor which may weaken the existence of, or reliance on, a gestalt. The eroding of trust between parties, the intervention of a dispute, the commencement of legal proceedings, the process of reducing an agreement into writing, and potentially a myriad of other factors will intervene. In those circumstances, a mutual gestalt may provide a very fragile foundation (or perhaps no foundation) for finding that the parties agreed on some other meaning to be given to the clearly expressed terms of a later instrument (in this case, the Settlement Deed), or that such a gestalt should trump such express terms.
The particular issues in the matter were the subject of some dispute at the commencement of the hearing. I will address that dispute and outline the particular issues in more detail below. However, in course-grain terms, the issues in the proceedings principally involved the means by which the parties sought to propound their cases in respect of the Settlement Deed. Thus, Mr Alamin contended that: (a) the Settlement Deed should be rectified (by reference to timing for instalment payments and lifting of a security to facilitate borrowing by him); (b) he suffered from a unilateral mistake which should permit relief; (c) the Settlement Deed was subject to certain implied terms or contractual duties concerning the payment timing and security terms under the Deed; (d) various duties were owed by Mr Islam impacting the timing and security matters, and were allegedly breached by him; (e) Mr Islam, by his legal representatives’ omission, engaged in misleading and deceptive conduct in the course of negotiations; (f) as a result of various alleged breaches by Mr Islam connected with the above issues, Mr Alamin suffered loss; and (g) the court should grant winding up relief on a just and equitable ground, or alternatively order a buyout.
The remaining issues arose out of Mr Islam’s amended cross-claim including declaratory relief that he is entitled to payment of a sum of $3.25 million (referred to below as the “Settlement Amount” or “Settlement Sum”), and interest, and various related relief regarding security in respect of the Settlement Amount.
Mr Castle SC, for the plaintiffs, submitted that the Settlement Deed was effective to “wipe the slate clean as at November 2022 in terms of the past history”, with the consequence that there was no need for me to decide any of the past allegations between the parties. Rather, the factual inquiry was said to be focused on the context in which the Deed was entered into and subsequent conduct [50] .
Ordinarily, in a rectification case, one would not ordinarily expect a large degree of material. That is particularly so in a context where, as here, the evidence of negotiations between the parties is entirely documentary with no oral communications between the principals being the subject of evidence (let alone factual contest) and indeed a total absence of evidence from any of the lawyers that were involved in the actual communication of offers of settlement to one another.
One might have thought that consistent with such a scenario, there would be little material for the Court to consider.
However, whatever alluring mirage of simplicity might be conveyed by the above matters vanished under the weight of a mass of documentation and various detailed sets of submissions, particularly on the plaintiffs’ side, including their contentions for numerous factual findings.
The pretext or (to use a neutral word) basis for the mass of documentation was on the plaintiffs’ side said to be justified by contextualising the negotiations and explaining the claimed gestalt understanding.
The result has given rise to a delayed and very lengthy judgment in which I have attempted to grapple with and make sense of the mass of material and the detailed submissions and contentions made by the parties.
Some idea of the volume and complexity is conveyed by the fact that the case commenced in the context in which there were nine volumes of Court Books containing 7,137 pages which, it soon became obvious, was not arranged chronologically [51] . I asked the parties to consider refining that material [52] . A bundle of so-called ‘critical documents’ was prepared (albeit at the end of the hearing). However, even that bundle of critical documents contained 1,427 pages.
Whilst the reduction of the documents said to be critical was a helpful step, there was a degree of messiness in document management through the hearing in which documents were referred to from 4 main sources:
Part 4 of the Court Book - marked as MFI-2;
a bundle of pleadings and affidavits from the 2021 proceedings (prepared by those acting for Mr Islam) - marked as MFI-3 and eventually tendered as exhibit D1;
a cross-examination bundle (of documents to be put to Mr Islam) - marked as MFI-7 and eventually tendered as exhibit P4; and
the bundle of critical documents - marked as exhibit P7.
Exhibit P7 contained the Summons and the pleading documents, the five affidavits of Mr Alamin and the three affidavits of Mr Islam, a chronological ordering of what was said to be the more significant or “critical” documents referred to during the hearing or otherwise relied upon (including “pleading” documents and affidavits from the 2021 proceedings). The numbering of pages in P7 included 6 pages that had been interleaved and distinguished by adding an “A”/“B” after those page numbers [53] . The only particular issue that this caused was that it slightly threw out precise electronic searches on page numbers.
Lastly, in PS5 (received after the in-court hearing), Mr Castle SC sought leave to tender in reply a historical company extract (12 May 2023) for Signature Homes/Amin Co, seemingly on the belief that it was not contained in P7 [54] .
The purpose of the proposed tender appears to have been to establish that [55]
The counterparty to the Sale Agreement was MA Homes Pty Ltd (later renamed MA Signature Homes Pty Ltd and later renamed as Amin Homes Hadiqat Woolgen Pty Ltd), of which the two directors listed in the historical ASIC search were Mr Alamin and Mr Hasan (CB4/6819-6820).
Whilst the specific extract (CB4/6819-6820) was not contained within P7, another historical search document for Signature Homes/Amin Co being a later extract (CB4/7131-7132) (as at 5 March 2024) is in evidence (P7 1415-1416) which contains the same historic information as CB4/6819-6820 and certain additional for the period after 12 May 2023 up to 5 March 2024. Thus, practically speaking, no leave to tender the document is necessary.
If a rectification case is ever to be aptly described as simple, the incongruity of the presentation of this case was accentuated by the plaintiffs’ legal representatives ultimately contending that the Court should make 74 factual findings set out in a 19 page landscape tabular form document (MFI-8 or PS4) (being the final version of ‘aide memoire’ document initially handed up on the penultimate day of the hearing and updated on the final day) [56] . Throughout these reasons I have addressed all 74 claimed facts.
Ultimately (possibly by oversight) there was no tender of the nine volumes of Court Book. Many of the documents tendered covered parts of the larger Court Book. For the purposes of this judgment I have principally referenced documents by reference to their appearance in various exhibits tended rather than by reference to the Court Book. Nonetheless, there are a number of instances where the parties referenced Court Book material either in submissions or during the hearing and to be procedurally fair to both parties I have proceeded on the basis (which was evidently the intent of counsel) that that material should be considered by me.
Mr Alamin, the first plaintiff/first cross-defendant, was born in Bangladesh on 22 December 1983 [57] and migrated to Australia in 2004 [58] . He studied at the Holmes Institute and, in or around 2005 and 2006, completed a Diploma of Accounting and a Diploma of Management [59] . Mr Alamin has previous experience in running businesses including: an education consultancy through M.A Education and Aus Student Centre Pty Ltd [60] ; MA Travels and Tours (a travel agency) [61] ; a hair dressing salon [62] ; a cardiac specialist hospital in Bangladesh [63] ; a retail shop named ‘Universal Product Outlet’ [64] ; and a men’s clothing brand named ‘the MA Collection’ [65] .
Mr Islam (also known as Arif to his friends and colleagues) the first defendant/cross-claimant, was born in Bangladesh on 31 December 1976 [66] .
Both Mr Islam and Mr Alamin practice the Islamic faith [67] . They became acquainted in or around 2014 through interactions with each other in the Eastlakes/Mascot area (where they both resided), through their common Bangladeshi heritage, and by their attendance at the same local mosque [68] where they conversed with each other about their lives, families and issues in the Bangladeshi community [69] .
Broadly speaking, the plaintiffs’ claims proceeded on the basis that Mr Alamin and Mr Islam had, consequent upon discussions, established a business venture together for the acquisition, development and sale of land, for their mutual profit, in a manner that was compliant with Shariah Law, [70] and for the purpose of making such land available for purchase by members of the Community (Joint Venture or JV) [71] .
From about 2015, separately and at times together, Mr Alamin and Mr Islam have caused companies to be registered, trusts to be created and otherwise engaged in activities for the purposes of advancing either or both of their own interests and mutual interests including, in particular, as property developers. They are directors and/or shareholders of certain companies and have other positions, connections with or associations with those companies, trusts or other entities.
The names of various of the companies are explicable by reference to a number of matters, but principally the given names of Mr Alamin and Mr Islam, and the street address locations of various of the developments.
From 2021, they have fallen into dispute and engaged in consuming litigation.
For convenience and to simplify these reasons I will identify the various entities principally by reference to the terminology used by the parties themselves in the Settlement Deed and by reference to their position in these proceedings as plaintiff, defendant, cross-claimant or cross-defendant (e.g. P1, D1, XC, XD1 etc). However, the reader should be alive to the fact that varied terminology has been used to describe the same corporate entities both over time (due to factors such as changes of names, and realignment of interests) and in other proceedings. The parties provided a diagram (MFI 1) which attempted to depict the connection between each of Mr Alamin and Mr Islam and the various as at 29 September 2025.
Mr Alamin has a family trust, the MSAA Family Trust (Alamin Trust) of which MSAA Family Pty Ltd is the trustee (MSAA/P2).
Through the Alamin Trust, Mr Alamin holds interests in a number of companies associated purely with himself and other companies in which he is associated with Mr Islam.
The companies of which Mr Alamin is a director are:
Amin Homes Hadiqat Woolgen Pty Ltd (formerly known as MA Signature Homes Pty Ltd) (ACN 648 134 374) (Amin Co post 25 January 2023 or Signature Homes pre 25 January 2023**/D2/XD2**) [72] ;
Amin Homes Murooj Woolgen Pty Ltd (ACN 653 353 867) (Amin Murooj/D3**/**XD3);
Amin Property Group Pty Ltd (ACN 653 888 932) (Amin Property/D9/XD4);
Amin Homes Hadiqat Pty Ltd (ACN 652 057 764) (Amin Hadiqat); and
Amin Homes Mahmiat Logan Pty Ltd (ACN 654 671 431) (Amin Mahmiat),
(collectively, the Amin Companies) [73] .
In Arabic, the names Hadiqat, Murooj and Mahmiat (and variations of such names) are all words descriptive of land (specifically gardens, orchards meadows, pastures, reserves or protected areas) [74] .
Of the Amin Companies, Mr Alamin holds his interests in the first 3 (Amin Co/Signature Homes, Amin Murooj and Amin Property) through the Alamin Trust. As at 2023, Amin Hadiqat and Amin Mahmiat were the subject of strike off action [75] . The Settlement Deed describes Mr Alamin and his companies as the ‘Amin Parties’. That is a descriptor which is used in correspondence and other evidentiary material in the proceedings and during the hearing either precisely by reference to the Deed or more generally to convey entities associated, or aligned with Mr Alamin, and at times I will adopt it as such.
Mr Islam has a family trust, the HNNHS Family Trust (Islam Trust).
Together, Mr Alamin and Mr Islam hold interests in a number of companies the names of which commence with the initials MH. The initials ‘MH’ stand for their first (given) names, M for Mohammad, and H for Hamidul [76] .
Germanely, there are five such companies:
MH Affordable Homes Pty Ltd (ACN 608 006 328) (MH Affordable/D4);
MH Affordable Homes on Woolgen Park Pty Ltd (ACN 626 654 108) (MH Woolgen/D5);
MH Affordable Homes on Dickson Pty Ltd (ACN 626 200 735) (MH Dickson/D6);
MH Affordable Homes on Kelly Pty Ltd (ACN 619 338 591) (MH Kelly/D7); and
MH Affordable Homes on Angle Vale Pty Ltd (ACN 624 775 846) (MH Angle Vale/D8),
(collectively, the MH Group Companies) [77] .
Mr Islam’s interests in the MH Group Companies are held both directly (in MH Affordable, MH Dickson and MH Woolgen) and through the Islam Trust (in MH Kelly and MH Angle Vale). Mr Islam also has interests in other entities: for example, he is a director and shareholder of AH Quality Homes, which was registered in April 2023 [78] .
Likewise, Mr Alamin’s interests in the MH Group are held both directly (in MH Dickson and MH Woolgen) and through the Alamin Trust (in MH Kelly and MH Angle Vale). His interest in MH Affordable is held through Amin Property. In addition, Mr Alamin through MSAA Family Pty Ltd holds an interest in APGM Pty Ltd (APGM/D10/XD5).
On or about 22 July 2021, Mr Islam was purportedly removed by Mr Alamin as a director of MH Affordable [79] . On or about 9 November 2021, Mr Islam caused the shares in MH Affordable to be transferred to Amin Property [80] .
There are 12 parties to the Settlement Deed being Mr Islam, Mr Alamin, the five Amin Companies and the five MH Group Companies.
Other entities referenced in the proceedings include Centuria Bass Financial Services Ltd (ACN 617 409 588) (Centuria Bass).
Each of Mr Alamin and Mr Islam have brought claims in the proceedings. Because the active defendant in the matter is the first defendant, I will, for convenience, from time to time use the word ‘defendant’ to refer to Mr Islam, the first defendant and first cross-claimant. Occasionally, I will be more specific in nominating other defendants.
Similarly, there will be occasions in which I use the word ‘plaintiff’ to refer to Mr Alamin and plaintiffs for both Mr Alamin and MSAA.
I will cite the evidence in the proceeding (as I have in part done already) by reference to the Court Book (CB), transcript pages (T) and exhibit numbers.
For the purposes of their dealings, essentially the business model was described by Mr Alamin as follows. A summary by Mr Elliott SC was not materially different [81] .
Entities were set up for the purpose of purchasing and developing land for each development project. The land was then developed, subdivided into lots and sold to third party purchasers. Generally, the customer base for the MH Group and Amin Group were people of the Muslim community, particularly those interested in buying property in a manner which does not necessitate them paying “interest”. Sale Agreements (seemingly or usually in the form of Put and Call Option Deeds) were entered between one of the MH Group Companies, described as a “developer”, intending to become the legal owner of the whole property (Site), and individual purchasers/customers.
Essentially, upon payment of an “Option Fee” by the individual purchaser to the developer, the developer granted to that individual an option to purchase an option lot (being an unregistered lot within the Site) on the terms set out in the deed. One example of such a deed (Example Deed) involved a purchaser paying an option fee of $365,500 in respect of the unregistered lot (11 Woolgen - see below) with an initial deposit being paid in May 2021 ($148,100), a 1st instalment paid over a period of 4 years (comprising 48 monthly payments of $2,050 – totalling $98,400) and a 2nd instalment paid over another year (comprising quarterly payments in the sum of $27,500 – totalling $110,000) [82] .
Exercise of the option involved the purchaser serving on the developer (or its legal representative) an exercise notice, executed Sale Agreement, and the balance of any deposit payable under the Sale Agreement [83] . The Sale Agreement became binding upon the parties upon the valid exercise of the option [84] .
Further, exercise of the option was conditional upon [85] the developer having become the registered proprietor of the Site and registration of the Subdivision Plan.
If for some reason the option lapsed because the developer had not become the registered proprietor of the Site or the subdivision had not been registered, the option fee would be refundable to the purchaser [86] . There were provisions permitting the developer to extend the registration period [87] .
The purchase price under a Sale Agreement is informally divided into two categories of payment. The first category being the ‘land price’ (or ‘land cost’), and the second category being the ‘development price’ (or ‘development cost’) [88] . Once the customer pays instalments which total the ‘land price’, the monthly instalments pause until such time as the development of the land commences. Once the development commences, the purchaser then recommences paying instalments, paying off the balance of the purchase price (being the ‘development price’) until the entire purchase price is paid. This feature seeks to avoid the need for customers to obtain financing from a financial institution and avoids them paying interest on such financing [89] .
The “Option Fee” or part of it (whether the initial deposit or one or more of the estate instalment payments) were colloquially described as “presale payments” [90] and forms part of the deposit payable under the Sale Agreement if the option is exercised.
Once the Option Fee (or any part of it) is paid, it is released to and becomes the property of the developer. On one view the developer is then free to use those funds for other purposes [91] . The Option Fee may ultimately be forfeited to the developer (subject to various compassionate exceptions) if the option is not exercised or the Sale Agreement comes to an end as a result of the purchaser’s default [92] . Pausing here, whilst the above appeared to be how at least one of the deeds worked, Mr Elliott SC did not accept that the above example was generally true of all the contractual arrangements [93] . Nonetheless, broadly speaking, it suffices for the purposes of this judgment.
Mr Castle SC, whilst indicating that the Example Deed precluded assignment or novation of the benefit arising out of or under the Example Deed without the prior written consent of each other party [94] , intimated that in practice there was an “unexpressed understanding” that involves the developer company either refunding an Option Fee or transferring the option to Mr Alamin, who would then be buying the property [95] .
Within five years of the inception of MH Group, Mr Alamin and Mr Islam had purchased and began the development (through companies) of various properties. The first five projects (which proceeded) are [96] :
404 Fourth Avenue, Austral NSW (Fourth Avenue Project) - via MH Affordable;
105-110 Gurner Avenue, Austral NSW (Gurner Avenue Project) - via MH Affordable;
95 Boyd Street, Austral NSW (Boyd Street Project) - via MH Kelly;
4 Harris Street, Angle Vale SA (Harris Street Project) - via MH Angle Vale; and
39 Dickson Road, Leppington NSW (Dickson Road Project) - via MH Dickson [97] .
Importantly, two properties at Woolgen Park Road in Leppington feature prominently in the parties’ dealings.
In the initial litigation between the parties which preceded the Settlement Deed (see below) Mr Islam contended that Mr Alamin, through companies he set up, sought to acquire in particular two blocks of land for himself at 11 Woolgen Park Road (Lot 14 DP 200915) (11 Woolgen) [98] and 82 Woolgen Park Road (Lot 28 DP 205952) (82 Woolgen) [99] (or together 11 & 82 Woolgen). Specifically, Signature Homes (now Amin Co) was the vehicle to acquire 11 Woolgen and Amin Murooj was the vehicle to acquire 82 Woolgen. Subsequently, by request from Mr Alamin, the vendor of 82 Woolgen agreed to a type of novation whereby APGM was incorporated (on 24 November 2023) for the purpose of being the substitute purchaser of 82 Woolgen [100] .
On 6 March 2021, Nadeen Anwar and Rabiya Huma Zagham (11 Woolgen Vendors) entered into a contract to sell 11 Woolgen to Signature Homes for $4.637 million (with a deposit of $463,700 and balance due of $4,173,300). The front page of the contract is in evidence. It provided for a lengthy 365 day completion period [101] (11 Woolgen Contract).
On or about 11 June 2021, Mr Alamin signed a sales agreement between Signature Homes and MH Woolgen in which Signature Homes agreed to transfer 11 Woolgen to MH Woolgen for the amount of $7 million (June Sale Agreement) [102] .
Precisely what occurred with the 11 Woolgen Contract is the subject of some dispute which, counsel agreed, it is not necessary for me to determine. For example, Mr Islam claims that Mr Alamin made him aware of the June Sale Agreement on 11 June 2021, but claims that he was not then informed of Mr Alamin’s involvement with Signature Homes. Mr Islam claims to being informed that it was not Mr Alamin’s company but rather that of a friend, Rajiv Mamu [103] . He further intimates that then (on or about 19 March 2021) only a 5% deposit (in the sum of $231,850) was paid [104] .
Mr Islam contends that a significant issue in the 2021 proceedings was that (after a complex process of tracing) the funds used to purchase 11 & 82 Woolgen had been taken by Mr Alamin from the MH Group [105] . His case was that the $7 million was to be paid by MH Woolgen as follows:
(a) $700,000 to Signature Homes on execution of the June Sale Agreement; (b) $4,173,300 to the 11 Woolgen Vendors on 6 March 2022 (being the date on which the Signature Homes contract with the 11 Woolgen Vendors was due to settle); and (c) $2,126,700 to Signature Homes within 18 months of execution of the June Sale Agreement.
On that basis, Mr Islam said that Signature Homes was to rescind its contract with the vendors for the purposes of enabling a similar contract to be entered into between MH Woolgen and the 11 Woolgen Vendors. Mr Islam contended that Signature Homes stood to make a gain of $2,363,000 from the sale of 11 Woolgen which it did not own, and that this gain was at the expense of the MH Group [106] .
On 2 May 2022, the 11 Woolgen Contract was varied by a Deed of Variation, which provided for the purchase price to be increased to $5,137,000, and for the completion date to be amended to 8 August 2022, with time being of the essence [107] .
On 15 February 2023, there was a proposed settlement of that sale. The Settlement Statement as at that date consistently records the purchase price as $5,137,000 and, after deducting the deposit paid of $463,700, suggested a balance of $4,673,300 was due and less further instalment payments of $820,000, the balance was $3,853,300. Further adjustments suggest that the final balance due to the 11 Woolgen Vendors on settlement was an amount of $4,265,250.41 [108] .
Mr Castle SC handed up a bundle of documents, marked MFI 9 [109] , the tenor of which was to demonstrate the following payments referable to the plaintiffs’ damages claim of $1,283,730 regarding 11 Woolgen, being a deposit of $463,700 and instalment payments of $820,030 [110] . It appears that those amounts were payments forfeited by the 11 Woolgen Vendors, in the following circumstances:
subsequent to the entry into the Settlement Deed Mr Islam sought urgent interlocutory relief to permit the PPSR charge “to be lifted” to allow him to obtain finance for the purchase of 11 Woolgen;
the summons for that relief (dated 12 May 2023) was heard on an urgent basis by Slattery J on 24 May 2023 and his Honour refused relief on that day and made certain orders and notations;
it seems that the refusal of that relief led to the virtually instantaneous termination of the 11 Woolgen Contract because on the following day, 25 May 2023, the 11 Woolgen Vendors entered into a contract to sell 11 Woolgen to Maria Letta for $6 million [111] ;
that sale appears to have been completed on or prior to 23 August 2023, with Ms Letta being registered as proprietor of 11 Woolgen (unencumbered) as at that date [112] ; and
consequently, 11 Woolgen was no longer available to Signature Homes/Amin Co to purchase (from the 11 Woolgen Vendors) as and from 23 August 2023 [113] .
The first 2 documents in MFI 9 were said to establish the amount of $463,700, being (a) $231,850 on 19 March 2021 (paid by Signature Homes) and (b) $231,850 on 11 June 2021 (paid by MH Affordable).
The last 3 documents in MFI 9 were said to establish the amount of $820,030, being: (a) $500,000 (sourced and approved by Mr Alamin) on 13 December 2021; (b) $250,000 (paid by Amin Mahmiat) on 29 August 2022; and (c) $70,030 (paid by Amin Property) on 3 November 2022. It will be readily observed that the last two payments are not by the plaintiffs. However, Mr Castle SC contended that the $820,000 sum was relied upon as a business record paid by Mr Alamin irrespective of where it came from [114] .
Mr Elliott SC had objected to the tender of the material, at least in part, later explaining that there was a very live issue in the 2021 proceedings about Mr Alamin misappropriating monies to pay the deposit for the company [115] . The tenor of Mr Elliott SC’s submission is that the underlying source of the monies or some of them is contestable. In light of the documents being marked as an MFI rather than as an exhibit, it is not evident that I can simply proceed on the basis that each of the above amounts are proved as a loss.
On 12 November 2021, Qi Weng (as vendor) entered into a Put and Call Option Deed (82 Woolgen Option) with Amin Murooj (as purchaser) in which Amin Murooj had an option to purchase 82 Woolgen on terms. The terms included payment of three sums aggregating to $1.5 million over a period of 18 months on and from the date of the agreement (the Call Option Fee) to be exercised between the period commencing eight weeks after the date of the agreement and ending on 25 September 2023 (the Call Option Period), with time being of the essence [116] . On that date, Amin Murooj exercised the 82 Woolgen Option and entered into a contract to purchase 82 Woolgen (82 Woolgen Contract) [117] .
By the time of the hearing:
Ms Letta (consequent upon the purchase in 2023) was still the registered proprietor of 11 Woolgen [118] ; and
APGM was the registered proprietor of 82 Woolgen - the purchase was completed on 21 December 2023 [119] and registered on 22 December 2023 – it being subject to 2 mortgages, the first to The Trust Company (PTAL) Limited and the second to Pacific 8 Pty Ltd (Pacific 8) [120] .
In this Court, Mr Alamin and Mr Islam and many of the Amin Companies and MH Group companies have been engaged in (or been parties to) three sets of proceedings.
First, on 13 December 2021, Mr Islam commenced, by originating process, the 2021 proceedings in this Court (2021/353907) against Mr Alamin, Signature Homes, Amin Hadiqat, Amin Murooj and the five MH Group companies [121] .
The claims in the originating process were articulated in a ‘Points of Claim’ which, after reciting the parties and their connections, essentially alleged that:
Mr Alamin had caused the affairs of the MH Group to be conducted contrary to the interests of its members or in a manner oppressive to, unfairly prejudicial to, or unfairly discriminatory against Mr Islam (oppression claims);
Mr Alamin had acted in breach of his statutory and fiduciary duties to members of the MH Group (breach of duty claims); and
Amin Co held rights under the 11 Woolgen Contract (and defined pre-sale contracts) and that Amin Hadiqat and Amin Murooj held traceable assets on constructive trust for members of the MH Group (or that Mr Alamin, Amin Co, Amin Hadiqat and Amin Murooj were liable to account or pay compensation to the MH Group members).
Mr Islam sought orders in respect of these matters under s 233 or alternatively s 237 of the Corporations Act 2001 (Cth).
The oppression claims were detailed, including contentions that Mr Alamin had [122] used cash resources and business opportunities of the MH Group members for his own benefit and advantage and that of Amin Co, and to the detriment of MH Group members.
Mr Islam’s claims in the 2021 proceedings principally concerned claims regarding 11 Woolgen [123] . He claims that subsequently after bringing those proceedings, he discovered that Mr Alamin had, through Amin Murooj, obtained a right to purchase 82 Woolgen and funds for the purchase deposit had been sourced from presales in respect of 11 Woolgen lots [124] .
The 2021 proceedings were listed for hearing before Parker J commencing on 4 November 2022, with an estimate of four days [125] . The proceedings were finalised consequent upon the Settlement Deed which became disputed and remain disputed.
On 5 December 2022, Mr Islam caused his security interest under the Settlement Deed to be registered with the Personal Property Securities Register (PPSR). Three separate registrations were made in respect of present and all future interest in shares in companies (seemingly in reliance upon cl 7 (b) of the Settlement Deed). The reason for the separate registrations appears to reflect the three means by which Mr Alamin held his interests in companies. Thus the registrations were as follows [126] :
PPSR registration number 202212050019100 (PPSR 1) in respect of Mr Alamin charging his present and all future interest in shares in MH Affordable, Signature Homes and MH Woolgen.
PPSR registration number 202212050018863 (PPSR 2) in respect of the Trustee for the Amin Trust charging its present and all future interest in shares in Amin Property, MH Kelly, MH Dickson and MH Angle Vale.
PPSR registration number 202212050018454 (PPSR 3) in respect of Amin Property charging its present and all future interest in shares in Amin Hadiqat, Amin Homes and Amin Mahmiat.
Secondly, these proceedings which as a consequence of the dispute concerning the PPSR interests were commenced by summons on 12 May 2023 by Mr Alamin and MSAA against Mr Islam and the other parties to the Settlement Deed (being three of the Amin Companies (Amin Co/Signature Homes, Amin Murooj and Amin Property) and the five MH Group companies) (these proceedings, sometimes referred to as the Alamin proceedings).
The summons sought interlocutory relief and final relief. The final relief sought rectification of the Settlement Deed and alternatively a declaration that the Settlement Deed is void ab initio by reason of mistake.
The interlocutory relief sought orders based on an undertaking as to damages that [127] :
the charge over Mr Alamin’s interest in the shares in MH Affordable registered as PPSR 1 be removed; and
Mr Islam (and associated entities) be restrained from registering or causing to be registered on the PPSR, any further charge against the plaintiffs until further order of the Court which would constitute a breach of five specified finance agreements.
That relief on one view presents as a mandatory injunction in respect of removal of the charge and restraining injunction in respect of lodgement of further charges.
In circumstances where Slattery J understood that Mr Alamin wished to borrow money to acquire further development land, his Honour perceived the interlocutory relief as resembling a claim for final relief being a form of request for rectification of the Settlement Deed and request to lift the security [128] .
Detail of the issues will be set out below, but essentially:
Mr Alamin contends that the Settlement Deed should be rectified to reflect the claim that Mr Islam was obliged to cooperate and assist with a refinancing of 11 & 82 Woolgen, to allow these properties to be purchased and developed, in return for which Islam would be entitled to a payment under the Settlement Deed of $3.25 million [129] .
Mr Islam contends that the Amin Parties owed him an unconditional obligation under the Settlement Deed to pay $3.25 million, which was not connected with the purchase and development of 11 & 82 Woolgen [130] .
Mr Alamin sought interlocutory relief to rectify the Settlement Deed and to lift the security. The application was heard by Slattery J, who on 21 June 2023 dismissed the application with costs (Alamin v Islam [2023] NSWSC 701). Leave to appeal from costs orders from the Slattery J judgment was dismissed by the Court of Appeal on 20 December 2023 (Alamin v Islam [2023] NSWCA 326).
Thirdly, consequent upon the issue (on 16 June 2023) of statutory demands by Mr Islam against three of the Amin Companies (Amin Property, Signature Homes/Amin Co and Amin Murooj) [131] , on 7 July 2023, each of the companies commenced separate proceedings seeking orders setting aside the statutory demand on the grounds that there is a genuine dispute about whether the debt is presently due and payable, and that each of the plaintiffs has a genuine offsetting claim. The three applications were heard by Williams J who set aside the demands (statutory demand proceedings) and on 15 December 2023 delivered reasons for judgment [132] .
Mr Islam instructed McCabe’s Lawyers (McCabes) with a number of lawyers including Foezullah Mohammed Dewan (usually referred to as Foez Dewan), a principal of the firm (Mr D****ewan), and William Wade (Mr Wade) having the conduct of the instructions.
These proceedings initially commenced with only Mr Alamin as plaintiff [133] . Between 25 May 2023 and 19 July 2023 MSAA was joined as the second plaintiff (the means by which is unclear). Mr Alamin instructed various lawyers including initially Origin Lawyers (relevantly, Andrew Quash and Christopher Sparks) and Cordoba Legal (Mr Kazem Elkheir). During the negotiations and consummation of the Settlement Deed Mr Alamin was represented by Mr Elkheir and Mr S Philips and Mr N Condylis of Counsel [134] .
On 14 December 2023 and on 3 June 2024, Mr Quash filed Notices of Ceasing to Act for Mr Alamin. It is unclear (but need not be resolved) whether Mr Quash had ceased to act at some point of time and was being re-instructed or were simply formalising an initial cessation of instructions. On 13 December 2024, Professor Dion Accoto filed a Notice of Appointment of Solicitor for Mr Alamin and on 4 June 2025 filed a Notice of Ceasing to Act.
Subsequently, on 30 July 2025, Tarek Kheir (Mr Kheir) of Kheir & Associates was instructed to act for Mr Alamin. However, on 29 August 2025, Mr Kheir filed a Notice of Intention of Ceasing to Act (intimating intention to cease to act after, namely on or about 26 September 2025). On 2 September 2025, (a few days later) Mr Kheir appeared at a pre-trial direction listing. Prior to the expiry of the time limit for ceasing to act, he took steps to comply with court directions. On 22 September 2025, Mr Kheir filed a Notice of Motion (seeking leave to issue a Notice of Ceasing to Act) with a supporting affidavit. The Notice of Motion was listed for hearing before Elkaim AJ on 25 September 2025. On that occasion, Mr Castle SC appeared with Mr Byrne and announced to the Court that the hearing of the matter would be conducted by himself and Mr Byrne, and the Notice of Motion was formally withdrawn. Formalisation of appointment of a solicitor for MSAA is unclear from the Court file. Nonetheless, the case was heard on the basis that Mr Castle SC were instructed by Mr Kheir for both plaintiffs.
The Settlement Deed is executed by Mr Islam in his personal capacity and also in his capacity as trustee for the Islam Trust, in both cases witnessed by Mr Wade. The Deed is executed by Mr Alamin in his personal capacity, in his capacity as trustee of the Alamin Trust (in each case witnessed by Mr Elkheir), and as sole director and secretary of Amin Co/Signature Homes, Amin Hadiqat, Amin Murooj, MH Affordable, Amin Mahmiat and Amin Property, and by each of Mr Alamin and Mr Islam on behalf of the five MH Group companies.
The date of the Settlement Deed (22 November 2022) is defined as being the “Effective Date”: cl 1.1.
There are 12 recitals to the Settlement Deed (A-L). Recitals A-E outline the directorship and shareholding information of the corporate parties to the Deed. Recitals F-L are as follows
F. In 1 March 2021, Signature Homes acquired the rights for the purchase of a property at 11 Woolgen Park Road, Leppington NSW, being Lot 14 in Deposited Plan 200915 (11 Woolgen)
G. Islam alleges funds for the deposit of the 11 Woolgen were sourced, inter alia, from MH Group.
H. MH Woolgen received approximately $950,000 on account of presale of proposed subdivision lots of 11 Woolgen in or around 2021.
I. In November 2021, Amin Murooj entered into a put and call option deed for a property at 82 Woolgen Park Road, Leppington NSW, being Lot 28 in Deposited Plan 205952 (82 Woolgen).
J. Some of the funds for the deposit of the 82 Woolgen were sourced from Signature Homes on account of presale of proposed subdivision lots of the 11 Woolgen. Alamin alleges that the funds sourced from Signature Homes have since been repaid to Signature Homes.
K. On 13 December 2021, Mr Islam commenced proceedings no 2021/00353907 in the Supreme Court of New South Wales against Mr Alamin, Signature Homes, Amin Hadiqat, Amin Murooj and entities in the MH Group (Proceedings).
L. The Parties have agreed to settle all matters in dispute between them on terms and conditions set out in this Deed on a without prejudice and without admission basis.
Amin Parties - Alamin and Amin Companies, and any one, more or all of them.
Claim - All actions, suits, causes of action, proceedings, claims, both at law or at equity and/or arising under any statute, including all claims in relation to, arising out of or in any way connected with the subject matter referred to in the Proceedings.
Effective Date - Date of this deed
Settlement Amount - The sum of $3,250,000.00.
Clauses 2 and 3 deal with the involvement of Mr Islam with MH Affordable. Clause 2 provides for reappointment of Mr Islam as a director of MH Affordable on the Effective Date (22 November 2022). Clause 3 provides for the issuance of two ordinary shares to Mr Islam such that each of Mr Islam and Mr Alamin would hold 51 shares each in MH Affordable.
Clauses 4 to 16 of the Settlement Deed provide [135]
4. Settlement Amount
(a) The Amin Parties jointly and severally agree to pay to Islam (two-fifth (2/5) to be paid in his personal capacity, and three-fifth (3/5) to be paid in his capacity as trustee of the Islam Trust) the Settlement Amount in full and final settlement of the disputes the subject of the Proceedings.
(b) The Settlement amount is to be payable by way of the following instalments (Instalments)
(i) $350,000 by 31 December 2022;
(ii) $1,000,000 by 30 June 2023; and
(iii) $1,900,000 by 28 February 2024,
with time of the essence in respect of each payment.
(c) All payments under this Deed must be received into the Designated Amount in clear funds by the due dates referrable at subclause (b) above.
- Default
In the event of a failure to pay any of the Instalments in full or on time, or breach of clauses 2, 3, 4 and 6, and a notice is given to the Amin Parties to remedy that breach and the breach is not remedied within fourteen (14) days (with time being of the essence) then all of the balance of the Settlement Sum not then paid shall be immediately due and payable.
- Restraint on Dealing
The Amin Parties jointly and severally agree that up until the Settlement Sum has been paid in full, they will not transfer, dispose of, encumber or otherwise deal with all or any part of their interest in either or both of 11 Woolgen and 82 Woolgen, or any contract in respect thereof, other than for:
(i) sale of lots in their respective plans for sub-division; and
(ii) finance or encumbrance for the purposes of Completion of the Contract for Sale for 11 Woolgen and the Put & Call Option Deed for 8 Woolgen
without the prior written consent of Islam (which consent shall not be unreasonably withheld).
- Charge
The Amin Parties charge their present and any and all future interest in:
(a) all or any part of 11 Woolgen and 82 Woolgen, or any contract in respect thereof; and
(b) shares held in any MH Group or Amin Companies (which for the avoidance of doubt includes rights and entitlements under or in respect of those shares such as any entitlement to receive or share in the profits by way of dividend or otherwise),
as security for the payments of any amount payable under this Deed for the benefit of Islam and will execute all documents necessary to register or record such charge.
- Caveat
(a) The Amin Parties acknowledge and agree that Islam may lodge and maintain a caveat over each of 11 Woolgen and 82 Woolgen as and from the date any of them becomes registered proprietor of the property in question to protect Islam’s interest as charge.
(b) Islam acknowledges and agrees to temporarily withdraw his caveat(s), as and when required by the Amin Parties for the purposes of allowing the Amin Parties to refinance or encumber either property in accordance with a use of those properties for a purposes as consented to by Hamidul Islam under clause 6(ii) of this Deed.
- Consequences of Default
In the event of any default by the Amin Parties:
(a) Islam may commence proceedings to enforce this Deed, and any and all rights and interest created by, under or in connection with it; and
(b) in respect of any claim for payment under clause 4, the Amin Parties will not be entitled to, agrees not to, and hereby waives any right at law, equity or otherwise, to raise any defence, set off or cross-claim so as to delay, defer or reduce its obligation to pay the amount claimed by Islam, or otherwise.
- Default Costs
(a) In the event of any default by the Amin Parties, the Amin Parties shall pay Islam all costs incurred by Islam in the enforcement of this Deed on the full indemnity basis, and agree to indemnify Mr Islam in respect of such costs.
(b) The amount payable under subclause 10(a) is secured by the charge in clause 7 above.
- Provision of information
Upon receipt of reasonable written request, the Amin Parties will keep Islam informed of the progress and proposed future action in relation to conveyance of 11 Woolgen and 82 Woolgen, and financing or attempt to secure financing in respect of these properties within a reasonable period of time.
- No restriction on pursuing business opportunities
The Parties acknowledge and agree that Alamin and Islam, either on their own or in partnership with any other person, will be at liberty to pursue any business opportunity, including the acquisition, subdivision and sale of subdivided or proposed subdivided lots, adopting a business model similar to that of the MH Group. The Parties agree that these other businesses must not be pursued using the financial resources of the MH Group
- Deadlock
[not reproduced]
- Releases
Islam, the entities in the MH Group, and the entities in the Amin Parties, and each of them, release each other from any and all Claims they have, may have or have had, whether known or unknown, and whensoever and howsoever arising against one another up to the date of this deed, including in relation to any payments made or received by any one or more of them whether by way of loan or otherwise including in relation to the sale of all or any part of 11 Woolgen or 82 Woolgen.
This release shall not operate in respect of loans internal to the MH Group, as between any member of the MH Group and Islam or Alamin, or internal to the Amin Group
- Dismissal of Proceedings
The Parties agree that the Proceedings be finalised by the Court making orders on terms as set out in the short minutes of order in “Annexure C” to this Deed.
Clause 17 sets out six matters which the parties “warrant and represent to each other”.
Clause 18 deals with confidentiality and non-disparagement. Clause 19 deals with the giving of notices. Clause 20 deals with general matters including provisions in respect of the “Entire agreement”, “No merger”, “Amendment”, “Assignment”, “Severability”, “Rights, remedies additional”, “Capacity”, “Legal Advice”, “Time of Essence”, “Counterparts” and “Governing law and jurisdiction”.
Annexure “A” was a circulating resolution of members of MH Affordable signed by each of Mr Alamin and Mr Islam, annexure “B” a circulating resolution of Mr Alamin as sole director of MH Affordable, and annexure “C” short minutes of order (providing for orders that all previous costs orders made in the proceedings be vacated, and the proceedings being otherwise dismissed with no order as to costs, with the intent that each party bear its own costs of the proceedings).
The Settlement Deed uses the terminology of both “Settlement Amount” (clauses 1.1, 4) and “Settlement Sum” (clauses 5, 6) in respect of the amount of $3,250,000. For the sake of consistency I will use the expression “Settlement Amount” for that amount under the Settlement Deed particularly in circumstances where the expression “Settlement Sum” was used in respect of the prehearing offers for a different amount.
On the hearing, Mr T D Castle SC, Mr A J Byrne and Ms C M Egan of Counsel appeared for the plaintiffs and cross-defendants [136] , and Mr M R Elliott SC of Counsel appeared for the first defendant and cross-claimant. The hearing progressed over five days (from 29 September to 3 October 2025).
On the penultimate day of the hearing each of Mr Alamin and Mr Islam (as authorised officers of MH Affordable, MH Woolgen, MH Dickson, MH Kelly and MH Angle Vale) filed in court a submitting appearance for those parties [137] .
Counsel provided written outlines of submissions prior to the hearing, and subsequent submission documents as well as addressing the court orally on the final day of the hearing.
I will refer to the oral submissions by transcript page reference and the various written submission documents as follows:
Opening written submissions of the plaintiffs dated 25 September 2025 (PS1), and of the defendants dated 25 September 2025 (DS1);
Defendants Supplementary Opening Submissions dated 26 September 2025 (DS1);
Plaintiffs’ Outline of Legal Principles except Remedies dated 2 October 2025 and Outline of Further Legal Principles dated 3 October 2025 (PS2);
Plaintiffs’ Factual Submissions - Speaking Notes dated 3 October 2025 (PS3);
Plaintiffs’ Contended Findings of Fact (2 October 2025 marked as MFI-8 to be used as an aide memoire [138] ), and subsequently updated on 3 October 2025 [139] (PS4);
Defendant’s Closing Submissions dated 3 October 2025 – superseding DS1 and DS2 (DS3) [140] ; and
Note of Matters Not Put in Cross-examination - plaintiffs dated 13 October 2025 (PS5) and defendant’s Response dated 14 October 2025 (DS4).
Mr Castle SC’s oral submissions identified two broad topics [141] as being issues concerning (a) the Settlement Deed and (b) the future of the JV and the MH Group Companies. He did this by reference to [142] : (a) relevant principles; (b) facts and (c) remedies.
I have considered Mr Castle SC’s ‘Speaking Notes’ (PS3) but, other than in one respect, I have not separately reproduced them as much of the detail covered in them is addressed otherwise in these reasons.
Mr Elliott SC poured scorn on the plaintiffs’ case. Essentially, he contends that rather than on a promise to pay the Settlement Amount, Mr Alamin has created a construct advancing a series of claims calculated to avoid such payment [143] in light of his wishes and possibly based on what he now has convinced himself to be true, though it is objectively false [144] . I will address below more specifically his submissions which essentially were tailored to address the plaintiffs’ case in the way that it was both pleaded and (with some degree of chagrin) allegedly modified by Mr Castle SC.
The final version of the parties’ claims were embodied in the Amended Statement of Claim dated 22 May 2024 on (ASOC) and the Amended Cross-claim dated 26 March 2024 (AXC) [145] .
The plaintiff’s initial claim for relief in the Summons, was principally a claim for rectification and alternatively a declaration that the Settlement Deed is void ab initio by reason of mistake [146] . The ASOC reordered the relief. Rectification relief (see below) was relegated to Order 6. Essentially, the first draft of relief sought (Prayers 1-5) was substantially in the following terms:
Orders in equity and/or pursuant to s 90 of the Civil Procedure Act 2005 (NSW) (CPA), and/or s 232 and/or s 243 of the Australian Consumer Law, being Schedule 2 to the Competition and Consumer Act 2010 (Cth) (ACL), restraining the first defendant, by himself and/or his associated entitles, from (in summary)
(i) seeking payment under the Settlement Deed of Settlement other than from profits earned by Signature Homes and Amin Murooj from the acquisition and development of properties at 11 & 82 Woolgen;
(ii) seeking to rely upon or otherwise enforce statutory demands served upon the Signature Homes and Amin Murooj and Amin Property on 16 June 2023;
(iii) hindering or delaying the making of payments in the ordinary course of the joint venture business;
(iv) seeking to impose conditions on the giving of his consent to the making of distributions to shareholders of joint venture companies, otherwise recommended by the accountant to the “Varied Joint Venture”, either at all or to obtain an unwarranted collateral benefit for himself.
An order pursuant to s 467 of the Corporations Act and/or s 90 of the CPA for Mr Islam and his associated entities to sell to Mr Alamin and his nominees shares in the MH Group Companies.
An order pursuant to s 467 of the Corporations Act and/or s 90 of the CPA for an independent expert valuation of the MH Group Companies.
Alternatively, an order pursuant to s 461(1)(k) of the Corporations Act that the MH Group Companies be wound up.
Further or alternatively, an order in the Court’s equitable jurisdiction and/or pursuant to s 90 of the CPA that the JV be wound up on the just and equitable basis.
Certain of the issues outlined below make specific reference to the claims for relief and the pleadings. In order to understand the issues it is appropriate to set out those parts.
Prayer 6 of the ASOC seeks rectification (or an order pursuant to s 243 of the ACL), varying the terms of the Settlement Deed as follows
(i) Clause 4(b), so as to read: [with the proposed rectification underlined]
The Settlement Amount is to be payable by way of the following instalments, as to (i) and (ii) upon Amin Homes Hadiqat Woolgen Pty Ltd becoming the registered proprietor of 11 Woolgen Park Road, Leppington on or before 15 December 2022; and as to (ii) upon Amin Homes Murooj Woolgen Pty Ltd becoming the registered proprietor of and 82 Woolgen Park Road Leppington by 25 September 2023;
i. $350,000 by 31 December 2022;
ii. $1,000,000 by 30 June 2023; and
iii. $1,900,000 by 28 February 2024,
with time being of the essence in respect of each payment,
Provided that, if Amin Homes Hadiqat Woolgen Pty Ltd and Amin Homes Murooj Woolgen Pty Ltd becomes the registered proprietors of these [that] propertyies [sic] after 15 December 2022 and 25 September 2023 respectively, the dates specified in (i), (ii) and (iii) are to be extended by a commensurate period of time from the dates of acquisition of those properties.
(ii) Clause 7 [so as to conclude with an additional clause as follows]
Islam acknowledges, and agrees and consents, to the temporary withdrawal of any of the charges referred to in clauses 7(a) or 7(b) as and when required by the Amin Parties for the purposes of allowing the Amin Parties to refinance or encumber either property in accordance with a use of those properties for a purpose as consented to by Hamidul Islam under clause 6(ii) of this Deed.
there was no contravention of cl 9 of the Deed of Settlement Deed by the non-payment of $350,000 by 31 December 2022 or such later time in respect of that payment or any other amount where the purchase of the 11 Woolgen Property did not occur.
Islam acknowledges and agrees and consents to the temporary withdrawal of any of the charges referred to in clauses 7(g) or 7(b) as and when required by the Amin Parties for the purposes of allowing the Amin Parties to refinance or encumber either property in accordance with a use of those properties for a purpose as consented to by Hamidul Islam under cl(ii) of this Deed.
engaging in the conduct at paragraph 34 of this Statement of Claim Islam engaged in conduct that was misleading or deceptive in contravention of s.18 of the ACL.
Prayer 10 sought an order pursuant to s 73 of the C**ivil P**rocedure A**ct 2005 (NSW) (CPA) that the 2021 proceedings were compromised on the terms set out in the Settlement Deed and that it contained terms as pleaded prayers 6(i) and (ii).
Pleading [10] in the ASOC provides
By reason of their mutual trust and confidence and/or intended mutual trust and confidence, each of Alamin and Islam, In respect of themselves and/or entities they controlled, owed fiduciary duties to the other In respect of the Joint Venture (Fiduciary Duties), including:
a. a duty to act, at all times, in good faith, In the best interests of each other, for a proper purpose, in relation to the Joint Venture between them;
b. a duty not to obtain or use an improper advantage or profit or to act in a position of conflict in relation to the Joint Venture between them;
c. a duty to cooperate and contribute, at all times, to the successful operation of the Joint Venture between them, including by making agreed financial and nonfinancial contributions to the success of the Joint Venture; and
d. a duty, at all times, not to use any position, right or power to cause damage or harm to the other in relation to the Joint Venture between them,
PARTICULARS
i. These duties arise in equity: see eg. United Dominions Corporation Ltd v Brian (1985) 157 CLR 1; [1985] HCA 49; Stellar Vision Operations Pty Ltd v Hills Health Solutions Pty Ltd [2023] NSWCA 102.
For the purpose of implementing the Joint Venture, Alamin and Islam agreed, inter alia (Joint Venture Agreement):
a. to establish individual companies to acquire land and undertake each specific housing development project (JV Properties), In which they or entities controlled by or associated with them would be the shareholders (JV Companies);
b. to fund the purchase of the JV Properties and operations of the respective JV Companies, either from their own funds or from moneys provided by intercompany loans from other JV Companies;
c. to be involved in running the business of the Joint Venture, with Alamin to be the managing director of the Joint Venture’s business and each of the JV Companies;
d. to share any profits to be distributed by the Joint Venture in proportion to their contributions to each development project, or otherwise as agreed between them, but with the expectation that most profits would be initially retained within the Joint Venture companies further to the object at (b) above,
PARTICULARS
i. The Joint Venture Agreement was oral and/or i**mplied.
ii. The oral part was the discussions which took place in or about 2015, as to which see paragraph 15 of the Statement of Claim filed by Islam against Alamin and others (Islam SOC), being proceedings 2021/353307(Islam Proceedings) and paragraph 15 of the Alamin Defence in those proceedings.
iii. The implied part arose from the conduct of the parties on and from the establishment of the Joint Venture (as to which see Slaveski v Nanevski Developments Pty Ltd [2023] NSWCA 145 at [20].
The Joint Venture Agreement included the following implied terms and/or duties at law owed by Alamin and Islam, by themselves and their associated entities (JV Contractual Duties):
a. A duty to act In good faith, reasonably and for a proper purpose in respect of each other and/or the subject matter of the Joint Venture;
b. A duty to cooperate and to give each other the benefit of the Joint Venture.
PARTICULARS
i. These duties arise at law: see eg. McKay v Dick (1381) 6App Cas. 251, Butt v M’Donald (1896) 7 QLJ 68, Secured income Real Estate (Aust) Ltd v St Martins Investments Pty Ltd (1979) 144 CLR 596, Alcatel Ltd v Scarcella (1998) 44 NSWLR 349, Burger King v Hungry Jack’s Pty Ltd (2001) 69 NSWLR 558, and Macquarie International Health Clinic Pty Ltd v Sydney South West Area Health Service (2010) 383 ALR 577.
Further or alternatively, Islam owed Alamin and each of the second to ninth defendants implied contractual duties under the Deed of Settlement (Deed Implied Duties) including:
a. A duty to act in good faith, reasonably and for a proper purpose In respect of each other and/or the subject matter of the Deed;
b. A duty to cooperate and to give Alamin and each of the defendants the benefit of the Deed.
PARTICULARS
i. These duties arise at law: see the particulars to paragraph 12 above.
Following the entry into the Settlement Deed and/or the Varied Joint Venture, Islam has failed to comply with his Fiduciary Duties and/or his JV Contractual Duties and/or his Deed Implied Duties (Islam’s Wrongful Conduct), including by reason of the following conduct:
a. Islam continues not to undertake any, or any meaningful, work to contribute to the profitable development of the JV Properties referred to in paragraph 14 above, but continues to leave that work to Alamin, as Alamin has done since 2015 as stated in paragraph 14 above.
b. Islam has refused or delayed authorising payments to third party contractors and/or suppliers from the bank accounts of the JV Companies, thereby exposing Alamin and the JV Companies to liability, including to government authorities in respect of unpaid debts and liabilities, as well as adversely affecting the proper operation and functioning of the JV Companies.
…
c. Islam refused to agree to a distribution of at least $1,100,000 and 2 (then) unsold lots in developments of the eighth defendant, on or before 30 June 2023, to each of Alamin and Islam according to their agreed entitlement of 50% of those proceeds, unless Alamin agreed to a condition that Alamin In effect hand over his 50% share of the proposed distribution, being $550,000 and an unsold lot at 4 Harris Road, to Islam.
…
d. Islam has wrongfully generated disputes with Alamin in order to extract a payment of the ‘Settlement Amount’ of $3,250,000 under the Deed of Settlement from Alamin, and in doing so, caused or contributed to the loss of the opportunity to acquire the 11 Woolgen Property under the 11 Woolgen Purchase Agreement, and thereafter put at risk the future purchase of the 32 Woolgen Property under the 82 Woolgen Option Agreement, by the second and third defendants respectively.
…
e. on 16 June 2023, Islam served, and has refused to withdraw, Statutory Notices of Demand (Statutory Demands) issued upon the second, third and ninth defendants for $3,250,000 allegedly owing under the Deed of Settlement, for the purpose of extracting unwarranted financial benefits for himself at the expense of his co-venturer, Alamin, the JV Properties and the development of the.11 Woolgen Property and the82 Woolgen Property, well knowing that the funds intended to be used to pay that sum under the Settlement Deed were unavailable, because the second defendant could not complete the 11 Woolgen Purchase Agreement for the reasons outlined above in subparagraph d above and/or because the assets of Alamin and his associated entities were tied up In the JV Properties.
…
Further or alternatively, at no time prior to the entry into the Deed of Settlement did Islam state to Alamin that:
a, Islam claimed or reserved the right to seek payment of the ‘Settlement Amount’ under clause 4 of the Deed of Settlement even if the purchase of the 11 Woolgen Property did not proceed;
b. Islam claimed or reserved the right to register, and not remove, a charge under clause 7.6 of the Deed of Settlement on the PPSR in respect of the second and third defendants to allow additional financing to be obtained to complete the purchase, even if to do so was or would be a breach of a financing agreement with Centuria Bass, and would result In a potential loss of the opportunity of those companies to purchase the 11 Woolgen Property and the 82 Woolgen Property respectively;
c. Alamin took on the risk, by entry into the Deed of Settlement, that the payment of the ‘Settlement Amount’ would be due under clause 4 whether or not the second defendant purchased the 11 Woolgen Property.
1B. An order for the appointment of a receiver to all of the real estate, money and other assets the subject of the Mortgage and charge for the purposes of taking possession of and thereafter dealing with that property, including by way of transfer or sale, for the purposes of facilitating payment to the cross-claimant of the sums payable pursuant to the judgment of this Court.
1C. In the partial alternative to order 1B, an order pursuant to s 66G of the Conveyancing Act for the appointment of a trustee for sale of 82 Woolgen Park, and complimentary orders to facilitate the sale of the property and distribution of the proceeds of sale to the cross-claimant in his capacity as mortgagee or chargee.
Mr Castle SC contended that in about 2015, Mr Alamin and Mr Islam entered into an oral joint venture to: (a) establish companies to acquire undeveloped land; (b) sell sub-divided lots to members of their faith community; (c) use the funds generated by purchasers from pre-sold lots together with Shariah Law compliant financing and to pay the purchase price for the land and build services; and (d) share the profits generated by the sale of the subdivided lots [149] .
The plaintiffs pleaded that there was a joint venture established as between Mr Alamin and Mr Islam in respect of which the relationship between them was intended to be “one of mutual trust and confidence between them within the scope of the Joint Venture”, with various fiduciary duties owed.
Mr Elliott SC did not accept the characterisation of a joint venture relationship. However, the defence asserts [150] in respect of the allegation of a JV that Mr Islam:
conceived the idea of establishing a property development business of the kind subsequently conducted by the MH Group; and
approached Mr Alamin to discuss whether he would be interested in participating in the establishment, ownership and management of a company to be incorporated for the property development business.
Mr Islam admitted that the relationship between them was intended to be one of mutual trust and confidence, in which he says that both of them had duties in respect of the MH Group to: (a) act in good faith and in the best interests of it and for its proper purpose; (b) not put themselves in a position of conflict in relation to its the interests; and (c) not use their respective positions so as to gain an advantage for themselves or for anyone else, or to cause detriment to it. However, Mr Islam denied the relationship was a joint venture and denied that there was a duty to cooperate and contribute to the successful operation of the joint venture including by making agreed financial and non-financial contributions to its success [151] .
Mr Islam pleaded a detailed defence in respect of the alleged JVA and its terms. Broadly speaking, he [152] :
contended that MH Affordable was incorporated to commence the property development business of the MH Group; says that MH Woolgen, MH Dickson, MH Kelly and MH Angle Vale were established to further that property development business at various locations, and that Mr Islam and Mr Alamin were directors and equal shareholders (personally or through trusts) of those companies. Mr Islam otherwise did not admit the balance of ASC [11] (on one view conveying that he did not admit that any other projects were part of the alleged JV).
contended that Mr Islam and Mr Alamin had each contributed to the initial working capital of MH Affordable for the purposes of purchasing the first property project in the MH Group, namely the Fourth Avenue Project; the affairs of the MH Group have operated such that payments generated from presales from one entity were made available when used for the purposes of progressing developments by another entity or for advancing the projects through the MH Group. Mr Islam otherwise did not admit property projects beyond this;
admitted that Mr Alamin was to assume and perform the role of managing director of MH Affordable, but did not otherwise admit that he was managing director of the so-called JV business and of each of the MH Group Companies; and
that Mr Islam and Mr Alamin agreed to share equally in the profits of the companies in the MH Group, but otherwise denied that there was some expectation that most of the profits would be initially retained within the MH Group Companies to further property projects.
Mr Islam also denied that the so-called JVA had terms that there was a duty to: act in good faith, reasonably in for a proper purpose in respect of each other and/or the subject matter of the JV; and to cooperate and to give each other the benefit of the JV [153] .
However, the notion that there was some form of overall joint venture which encompassed all dealings between the parties was disputed by Mr Elliott SC. In particular, he contends that the parties’ rights in respect of 11 & 82 Woolgen claimed in the 2021 proceedings were released through the Settlement Deed and Mr Islam (going forward) became a secured creditor. He says that neither Mr Islam nor the MH Group companies received any shares in the Amin Parties (including those which held rights to purchase the two properties), nor any directorship position, nor for that matter, any position within management of the Amin Parties at all, with the consequence that Mr Islam did not owe the Amin Parties fiduciary duties in his capacity as an alleged joint venture participant in a joint venture for the development of 11 & 82 Woolgen [154] .
In the 2021 proceedings, Mr Alamin sought to defend the claim by reference to what is described as a ‘Wind Down Understanding’ said to have been reached between Mr Alamin and Mr Islam between about November 2020 and early 2021, having characteristics that [155] :
no further properties were going to be acquired by entities within the MH Group, and no new developments would be sourced and undertaken by entities within the MH Group;
the MH Group business would be progressively wound down following the completion of the existing property development projects being undertaken; and
each of Mr Alamin and Mr Islam would be permitted to undertake property development projects and opportunities on their own without the involvement of the other person (and the MH Group) going forward.
The projects identified under the Wind Down Understanding were 5 projects - one in South Australia (Harris Road Project) with the balance in New South Wales, being one at Leppington (Dickson Road Project) and the remaining three at Austral (Fourth Avenue Project, Gurner Avenue Project, and Boyd Street Project) [156] .
The Wind Down Understanding was said by Mr Alamin to have been communicated orally and in writing, and instigated by Mr Alamin for various reasons including assertions that Mr Islam was not undertaking tasks required of him as a co-director of the entities within the MH Group and not devoting his time and attention to the MH Group’s business activities [157] . Further, a final aspect of Mr Alamin’s defence was that there was a so-called change in the Wind Down Understanding in or about April 2021 in that he considered that the understanding needed to be revisited having regard to difficulties encountered by the MH Group with the MH Kelly development and the related legal proceedings. He pleaded that he took steps to bring the Woolgen Park Property opportunity to the MH Group in those circumstances [158] .
The plaintiffs pleaded details of what was said to be the life cycle of a joint venture between Mr Alamin and Mr Islam:
initially by reference to its inception having regard to the business model that I have described above, but otherwise in general terms [159] ;
identifying aspects of the conduct of the joint venture between 2015 and 2020 including the five projects (as identified above) [160] ; and
referencing the Wind Down Understanding and the 2021 proceedings [161] .
Mr Islam, whilst admitting certain acts undertaken by Mr Alamin put a different perspective on it and in any event denied the Wind Down Understanding [162] .
The plaintiffs pleaded that the JVA was varied (Varied JV) by the Settlement Deed such that Alamin and Islam and their respective associated entities (where relevant) agreed to [163] :
terminate the Joint Venture in respect of any future properties that either of them or their associated entities wished to acquire, subdivide and/or sell adopting a business model similar to that used by the Joint Venture or the JV Companies;
continue the Joint Venture in respect of existing JV Properties only; and
treat 11 & 82 Woolgen as if they were JV Properties, subject to the terms of the Settlement Deed, and to only release those properties from the alleged Varied JV upon payment to Islam of an amount described in the Settlement Deed as the ‘Settlement Amount’.
Connectedly, the plaintiffs pleaded that the so-called fiduciary and/or joint venture contractual duties continued until such time as the Settlement Sum was paid. Further or alternatively the plaintiffs contended that Mr Islam owed Mr Alamin and the various companies implied contractual duties under the Settlement Deed including a duty to act in good faith reasonably and for a proper purpose in respect of each other and/or the subject matter of the Settlement Deed and a duty to cooperate and to give Mr Alamin and each of the defendants the benefit of the Settlement Deed [164] .
Mr Islam denied that there was a variation of the so-called JVA, asserting that the material terms of the Settlement Deed were those appearing in clauses 1.1, 2, 3, 4, 5, 7. Expressly, he denied that the effect of the Settlement Deed was to treat 11 & 82 Woolgen as if they were part of the MH Group and/or any joint venture between Mr Alamin and Mr Islam [165] and further denied that the obligation of payment of the Settlement Amount was [166] :
contingent or conditional upon Signature Homes/Amin Co becoming the registered proprietor of 11 Woolgen or Amin Murooj becoming the registered proprietor of 82 Woolgen; and
payable from the property expected to be made by those companies from the acquisition, development and sale of 11 & 82 Woolgen.
Mr Islam denied that the fiduciary duties and/or contractual duties which was said to be continued in respect of the so-called Varied JV [167] .
On 2 September 2025, I made pre-trial directions. That included directing the provision of an agreed list of issues. On 16 September 2025 Mr Kheir, by email to my Associate, provided a copy of an agreed list of issues in accordance with the directions. That list contained five issues in respect of the plaintiff’s claim is articulated in the ASOC and a further five issues (6-10) from the AXC.
On 25 September 2025 (the Thursday prior to the Monday commencement of hearing), the plaintiffs’ counsel, in PS1, attached an amended version of the (agreed) “real issues” list. It added an additional four issues in respect of the ASOC (2A, 2B, 2C and 5A). These additional issues (see below) addressed questions of fiduciary duty, implied contract contractual duties and winding up relief.
Mr Elliott SC immediately took issue with this. He contended that: the additional four claims had been (appropriately) abandoned, and preparation had progressed on the basis of such abandonment; and the plaintiffs should not be permitted to pursue abandoned claims [168] .
On the commencement of the hearing Mr Castle SC disputed that there had been any abandonment [169] . Rather, he characterised the additions as realisation in the course of preparation that the listing of real issues needed to be amended [170] and was more properly described as a “change of position” [171] . The matter was taken up on the morning of the second day. Mr Elliott SC intimated that the revised list had taken him by surprise but whilst preserving his position somewhat, did not readily claim that he was prejudiced [172] .
[Issues on the plaintiffs’ claim]
1. Whether the Settlement Deed should be rectified to include the clauses identified in either or both of sub-paragraphs (i) and (ii) of Prayer 6 in the ASOC.
2. Whether the Settlement Deed contains;
(a) the implied term in Prayer 8 in the ASOC; and
(b) the implied contractual duties in ASOC [22].
2A. Whether Islam owed Alamin the fiduciary duties in ASOC [10].
2B. Whether Islam and Alamin were parties to an agreement on the terms in ASOC [11], and with the implied contractual duties in ASOC [12].
2C. Whether Islam breached any of the implied contractual duties in ASOC [22] or ASOC [12], or fiduciary duties in ASOC [10], by reason of the conduct in ASOC [23], and, if so, the remedy or remedies that ought to be ordered.
3. Whether, on the proper construction of the Settlement Deed (as rectified), the “Amin Parties” (as defined) have contravened cl 4 by reason that no instalments of the “Settlement Amount” (as defined) have been paid.
4. Whether, by reason of the omissions referred to in paragraph 32 of the ASOC, Islam engaged in conduct likely to mislead in contravention of s 18 of the ACL.
5. If Islam engaged in conduct likely to mislead in contravention of s 18 of the ACL:
(a) whether Alamin relied upon that conduct to his detriment; and
(b) the quantum of any loss or damage suffered by Alamin.
5A*.* Whether orders should be made for the winding up of the joint venture, and, if so, related ancillary steps.
[Issues on the defendant’s cross-claim]
- Whether Alamin (and the other cross-defendants) are liable, under cll 4 and 5 of the Settlement Deed to make payment to Islam of $3.25M plus pre-judgment interest.
- Whether Islam holds an equitable mortgage over 82 Woolgen Park Road and charge over the assets and interests referred to in sub-paragraph (b) of Prayer 1A in the Amended Cross-Claim (AXC).
- Whether a receiver ought to be appointed to the assets, and for the purposes, referred to in Prayer 1B of the AXC.
- Whether a trustee ought to be appointed, under s 66G of the Conveyancing Act 1919 (NSW), for the sale of 82 Woolgen Park Road and distribution of proceeds to Islam.
- Whether APGM Pty Ltd ought to be ordered to:
(a) execute a registrable mortgage in favour of Islam in respect of 82 Woolgen Park Road; and
(b) provide possession of that property to Islam.
There is a close connection between issue 3 on the ASOC and issue 6 in respect of the AXC, and I propose to deal with them together.
Matching the “amended agreed issues” with the claims for relief (and some pleading aspects) in the ASOC and AXC, broadly speaking 10 issues (with various sub-issues) emerge as follows:
Whether the Settlement Deed should be rectified so that:
(a) (in cl 4 (b)) - payment of the first and second instalments is qualified upon Amin Co/Signature Homes becoming the registered proprietor of 11 Woolgen on or before 15 December 2022 and Amin Murooj becoming the registered proprietor of 82 Woolgen on or before 25 September 2023 (with the proviso that if the registration occurs after those dates the amounts for the payment instalments are extended by commensurate period of time from the dates of acquisition of those properties)? (b) (in clause 7) - Mr Islam consents to the temporary withdrawal of any charges for the purposes of allowing the Amin Parties to refinance or encumber either of 11 & 82 Woolgen properties for the purposes of sale of lots or financing or encumbering the completion of the 11 Woolgen Contract and the 82 Woolgen Option?
(collectively, Rectification issue)
(a) an implied term to the effect that Mr Islam acknowledges, agrees and consents to the temporary withdrawal of charges when required by the Amin Parties for the purposes of allowing them to refinance or encumber the completion of the of the 11 Woolgen Contract and the 82 Woolgen Option (implied terms)? (b) implied contractual duties to act in good faith, reasonably in for a proper purpose in respect of each other and/or the subject matter of the Settlement Deed; and a duty to cooperate to give Mr Alamin and each of the defendants the benefit of the Settlement Deed (implied contractual duties)?
(collectively, Implied term/contractual duties issue)
(a) to act, at all times, in good faith, in the best interests of each other, for a proper purpose; (b) not to obtain or use an improper advantage or profit or to act in a position of conflict; (c) to cooperate and contribute, at all times, to the successful operation of the JV, including by making agreed financial and nonfinancial contributions to its success; and (d) not to use any position, right or power to cause damage or harm to the other (collectively, fiduciary duties)?
(collectively, Fiduciary duties issue)
(a) he (Mr Islam) claimed or reserved the right to seek payment of the “Settlement Amount” under clause 4 of the Settlement Deed even if the purchase of the 11 Woolgen Property did not proceed; (b) he (Mr Islam) claimed or reserved the right to register, and not remove, a charge under clause 7.6 of the Settlement Deed on the PPSR in respect of Signature Homes and Amin Murooj to allow additional financing to be obtained to complete the purchase, even if to do so was or would be a breach of a financing agreement with Centuria Bass, and would result in a potential loss of the opportunity of those companies to purchase the 11 Woolgen Property and the 82 Woolgen Property respectively; and (c) Mr Alamin took on the risk, by entry into the Settlement Deed, that the payment of the “Settlement Amount” would be due under cl 4 whether or not Signature Homes purchased the 11 Woolgen Property?
(collectively, Statement omission (ACL) issue)
(a) whether Mr Alamin relied upon that conduct to his detriment; and (b) what is the quantum of any loss or damage suffered by Mr Alamin?
(collectively, Reliance/loss issue)
(a) Mr Islam holds an equitable mortgage (Mortgage) or charge over the assets and interests referred to in the cross-defendants’ rights, title and interest in any contract in respect of it or sums paid or payable under it? (b) a receiver ought be appointed to all of the real estate, money and other assets the subject of the Mortgage in charge for the purposes of taking possession of and thereafter dealing with the property (including by way of transfer or sale, for the purposes of facilitating payment to Mr Islam of the sums payable pursuant to any judgment)? (c) a trustee ought to be appointed, under s 66G of the Conveyancing Act 1919 (NSW), for the sale of it and distribution of the proceeds to Mr Islam? (d) APGM ought to be ordered to execute a registrable mortgage in favour of Mr Islam in respect of it and provide possession of it to Mr Islam?
(collectively, 82 Woolgen issue)
The ordering of those issues from the plaintiffs’ perspective essentially advanced claims for rectification and restraining orders based on the notion that payment of the Settlement Amount instalments would be deferred until completion of purchase by Signature Homes/Amin Co and MH Murooj respectively of 11 & 82 Woolgen.
Thus, prayers 1(i), 6 and 7 were propounded by the plaintiffs as the primary source of the dispute between the parties [173] . This appeared consistent with the way that Mr Castle SC ultimately put the case in final submissions [174] .
Whilst not specified as an agreed issue, Mr Castle SC put submissions essentially tied with rectification on the basis that even if there was no common intention there was a form of unilateral mistake which justified relief (Unilateral mistake issue).
In this case (as often happens in litigation) counsel, whilst identifying the above “agreed issues” essentially conducted the case with focus or highlight on particular topics with the result that an examination of the transcript does not readily lend itself to neat sequencing or grouping of evidence, cross-examination and the various submissions referable to each formal agreed issue.
Mr Castle SC contended that the relevant context of the Settlement Deed is that it sought to preserve the JV from the threat of winding up, and work out a pragmatic way to deal with 11 & 82 Woolgen so that Mr Islam would get the Settlement Amount ($3.25 million) from the development of those properties by Mr Alamin [175] .
Mr Elliott SC contended that the Settlement Deed (and its context) is exactly the opposite, providing purely for the payment of the Settlement Amount and security for it, which was essentially unconditional. He submitted that the notion that the Settlement Deed involved some form of JV expansion so as to bring 11 & 82 Woolgen within the scope of any existing JV should be rejected [176] .
Mr Castle SC submitted that deeds of settlement fall to be construed using the ordinary principles of contractual construction and amongst the matters the Court can have regard to in the construction process are surrounding circumstances and the commercial purpose and object of the transaction, where a constructional choice exists. He said this was confirmed by the recent Court of Appeal decision in Pharmacy Platform Pty Ltd v Millichamp [177] . That is not quite correct. The principles cited by the Court of Appeal in that passage at [44]-[47], referred to by Mr Castle SC, relate specifically to the construction of releases in deeds. Specifically, it concerns two related principles of construction, that general words of a release are to be restrained: (a) by any particular occasion referred to in the recitals; and (b) to those things which were in the contemplation of the parties at the time when the release was given [178] .
The ordinary principles of contractual construction were addressed by French CJ, Nettle and Gordon JJ in Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37, in which their Honours stated [179]
46 The rights and liabilities of parties under a provision of a contract are determined objectively, by reference to its text, context (the entire text of the contract as well as any contract, document or statutory provision referred to in the text of the contract) and purpose.
47 In determining the meaning of the terms of a commercial contract, it is necessary to ask what a reasonable businessperson would have understood those terms to mean. That inquiry will require consideration of the language used by the parties in the contract, the circumstances addressed by the contract and the commercial purpose or objects to be secured by the contract.
48 Ordinarily, this process of construction is possible by reference to the contract alone. Indeed, if an expression in a contract is unambiguous or susceptible of only one meaning, evidence of surrounding circumstances (events, circumstances and things external to the contract) cannot be adduced to contradict its plain meaning.
49 However, sometimes, recourse to events, circumstances and things external to the contract is necessary. It may be necessary in identifying the commercial purpose or objects of the contract where that task is facilitated by an understanding “of the genesis of the transaction, the background, the context [and] the market in which the parties are operating”. It may be necessary in determining the proper construction where there is a constructional choice. The question whether events, circumstances and things external to the contract may be resorted to, in order to identify the existence of a constructional choice, does not arise in these appeals.
50 Each of the events, circumstances and things external to the contract to which recourse may be had is objective. What may be referred to are events, circumstances and things external to the contract which are known to the parties or which assist in identifying the purpose or object of the transaction, which may include its history, background and context and the market in which the parties were operating. What is inadmissible is evidence of the parties’ statements and actions reflecting their actual intentions and expectations.
51 Other principles are relevant in the construction of commercial contracts. Unless a contrary intention is indicated in the contract, a court is entitled to approach the task of giving a commercial contract an interpretation on the assumption “that the parties … intended to produce a commercial result”. Put another way, a commercial contract should be construed so as to avoid it “making commercial nonsense or working commercial inconvenience”.
52 These observations are not intended to state any departure from the law as set out in Codelfa Construction Pty Ltd v State Rail Authority (NSW) and Electricity Generation Corporation v Woodside Energy Ltd. We agree with the observations of Kiefel and Keane JJ with respect to Western Export Services Inc v Jireh International Pty Ltd.
Recently, Griffiths AJA in the Court of Appeal referenced the first part of the above-mentioned extract in relation to the construction of settlement documents [180] .
Nonetheless, the Court of Appeal has observed there are important limits to the notion that a court must give a contractual provision “a commercial and business-like operation”. Thus, in Donau Pty Ltd v ASC AWD Shipbuilder Pty Ltd (2019) 101 NSWLR 679; [2019] NSWCA 185 [181] , Bell P said at [58]
58 … Caution is required when resort is had (as ASC did) to assertions of “commercially unlikely consequences” as a reason for departing from the language parties have in fact used: see, for example, Jireh International Pty Ltd (t/as Gloria Jean’s Coffee) v Western Exports Services Inc [2011] NSWCA 137 at [55] ; Cushman & Wakefield (NSW) Pty Ltd v Farrell [2017] NSWCA 24 at [71] ; Lindsay-Owen v Winton Partners Funds Management Pty Ltd [2017] NSWCA 78 at [20] . “Business commonsense” is also a topic upon which minds may differ, and what a lawyer may surmise to amount to business commonsense may be far removed from the true position, whether because of a general lack of understanding of commerce, or because of an information deficit as to the commercial positions of both parties and their larger commercial concerns. Indeed, as Spigelman CJ observed writing extra-judicially, “when the matter comes to the level of litigation, each party remains convinced that ‘a business like’ interpretation or ‘business commonsense’ happens to coincide with its own commercial interests”: “From Text to Context: Contemporary Contractual Interpretation” (2007) 81 ALJ 322 at 330.
Each of Mr Castle SC and Mr Elliott SC referred to various cases and articles in outlining legal principles bearing upon the doctrine of rectification and other issues. In particular, Mr Castle SC referred to Simic [183] , Ryledar [184] and Jenyns [185] . Mr Castle SC’s case on gestalt particularly relied upon the decision of Campbell JA in Ryledar. I pause to note that the main reasons for decision in Ryledar were in fact given by Tobias JA. Nonetheless, Tobias JA (at [189]) having drafted his reasons but then having had the benefit of Campbell JA’s “very learned and penetrating discourse” on “Rectification and Intention” gratefully adopted his Honour’s reasoning and conclusions on this issue. Mason P (at [1]) agreed with Tobias JA and with the additional reasons of Campbell JA.
Mr Castle SC cited the reasons of Edelman J in H Lundbeck A/S v Sandoz Pty Ltd (2022) 276 CLR 170; [2022] HCA 4 at [93]-[95] (omitting footnotes and some text in [94]) [186]
93. There are ephemeral borders, to which lawyers sometimes cling, between three categories of interpretation of words in legal instruments: (i) interpretation of the meaning of express words in a clause; (ii) drawing inferences that recognise implications within a clause; and (iii) drawing inferences that recognise the implication of a new “term”. All three are “an exercise in interpretation”. All three are concerned with “what the [instrument] actually means”. And all three involve drawing inferences and recognising matters that are implied in the sense that they are not confined to the semantics of literally expressed meaning. For instance, like the latter two categories, even the first category will often involve drawing inferences from context by recognising explicatures from the express text. In all three categories, context and purpose supply additional information for the meaning that combines with the literal text. By this means, the “implication is included in [the meaning of] what is expressed”.
94. The distinction between the three categories can be so fine that in the same case some members of this Court have treated the interpretation exercise as falling within one category while others have treated it as falling within another category …
95. Despite the close, perhaps inseparable, association between these three categories of interpretation, it can sometimes appear as though courts are applying a different test for interpretation in each different category. Putting to one side any issue concerning whether ambiguity is required before extrinsic circumstances and context can be considered, a constraint which does not arise in relation to the meaning of written documents or instruments generally, a simple approach is generally taken in the category where the meaning of express words is concerned. In that category, the task of interpretation is commonly said simply to be a matter of ascertaining what would have been intended by a reasonable person in the position of the parties, with inferences about that meaning to be drawn from the information reasonably available to the parties.
In my view, when the fundamental requirement for granting rectification is a continuing common intention of the parties, it is of more assistance to concentrate on what is needed before an intention of the parties to a negotiation counts as a common intention. In my view, when that intention relates to the terms upon which they will contract with each other, it is still necessary for them to know enough of each other’s intentions for it to be said that there is a common intention. They might come to know of each other’s intentions in this way through those intentions being directly stated, or they might come to know of them through the various other means by which one person’s intention can become known to another person. Those means can sometimes involve a process of conscious and deliberate inference. Those means can sometimes involve simply perceiving a gestalt in a series of events. Those means can depend to some extent on the people involved sharing a common understanding of how particular bodies of knowledge or markets or social institutions they are operating in work — the experienced surgeon, or the experienced chess player, can sometimes see what another surgeon, or chess player, is seeking to do, in a way that an inexperienced person cannot. What matters for present purposes is that for a negotiating party to perform actions or say words from which the other party can gather his or her intention is itself a form of communication. Negotiation of any contract takes place in a context in which various facts are known or assumed by the negotiating parties. Sometimes, for example, if a contract is negotiated in a context where there are well understood business practices and conventions, and nothing is said about those practices and conventions not applying, it can be legitimate to conclude that both parties to the contract intended to act in accordance with those practices and conventions, even if they did not expressly communicate to each other that they intended to act in accordance with those practices and conventions. This view of what is needed before an intention is a common intention, accords, it seems to me, with the Australian case law since Joscelyne.
The above passage is saturated with exposition of legal principle expressed with practical insight (a hallmark of his Honour’s reasons for judgment generally). The notion of the parties having a common intention invites consideration of means by which the parties might know each other’s intentions. Leaving aside intentions being directly stated, there are various means by which one person’s intention can become known to another person. His Honour observed that those means can sometimes involve or depend upon:
a process of conscious and deliberate inference; or
simply perceiving a gestalt in a series of events; or
sharing a common understanding of how particular bodies of knowledge or markets or social institutions they are operating in work.
Generally speaking, it is impermissible to refer to matters which parties said or did after the contract was made as an aide to its construction. However, the conduct of parties may be admissible for purposes unrelated to construction, including in relation to rectification [189] .
A party seeking to demonstrate common intention (or refute it) is not necessarily limited to adducing evidence of facts prior to execution of the instrument. Evidence may be reduced to facts occurring after execution of the instrument from which inferences can be drawn as to the particular intention of the parties at the time the contract was entered into [190] .
The search for the actual intention is not circumscribed by reference to rules of evidence applicable to the construction of written contracts [191] . Evidence of a party of what he (or she) intended to convey by the written document is admissible [192] . However, assessment of the evidence requires caution because post-contractual conduct may provide no evidence of his intention prior to, and at, the time of execution of the contract but only of a later intention which may have been different [193] . Further, the weight of the evidence needs to be assessed carefully as there is a risk that the party may have convinced him or herself of an intention after the fact, which does not accord with the intention at the time of execution of the instrument.
The failure of a party to call a witness whose evidence is relevant to the issue may, in accordance with ordinary principles, give rise to the inference that the witness’ evidence would not have assisted the case of the party who could be expected to call her or him [194] . For example, the fact that somebody who was present during negotiations, such as a paralegal, is shown to have left at an early stage or was only present momentarily at stages during negotiations may, depending upon the particular facts, negate any such inference.
The meets and bounds of rectification in law depends upon the jurisdiction involved [195] . There are three distinct doctrines of ‘rectification’, discussed by Mark Leeming in his excellent article ‘The Limits of rectification’ (2023) 17 J**ournal of Eq**uity 122, namely: (a) rectification by construction, an aspect of construction generally applicable to instruments including testamentary instruments; (b) rectification in equity, which does not extend to testamentary instruments; and (c) rectification under statute, which is confined to testamentary instruments [196] .
Common law permitted a form of rectification of a mistake through a means of construction of the relevant instrument in cases of clear error where it was evident what a reasonable person would have understood the parties to have meant [197] .
Rectification as an equitable remedy has a purpose to make the relevant instrument conform to the true agreement of the parties where the writing, by common mistake, fails to express that agreement accurately [198] .
The doctrines of ‘rectification by construction’ and ‘equitable rectification’ are distinct [199] . Conceptually, there is a “world of difference” in the approaches taken at common law and in equity. Leeming JA has observed [200]
rectification in equity turns on the discrepancy between the written instrument and a separately proven contrary common intention, which was intended to have been incorporated into the instrument, such that it is unconscientious for a party to insist on performance in accordance with the written instrument.
Unlike the equitable doctrine, ‘rectification by construction’ is: not withheld on discretionary grounds; nor subject to relief being imposed on terms; and is based upon an objective intention which is to be imputed to the parties [201] .
Mark Leeming readily acknowledges that labels shape our thoughts and our legal reasoning. However, he observes that there is or can be unnecessary ambiguity in the use of legal labels and at least in the instance of ‘rectification by construction’ such terminology is inapt - at least in the sense that technically the document is not being rectified. Rather, the court merely construes the text [202] .
The rationale for granting rectification of a written contract in equity is grounded in unconscionability. The focus is on whether it is unconscientious for a party to a contract to seek to apply the contract inconsistently with what he or she knows to be the common intention of the parties at the time that the written contract was entered [203] .
Consistent with a basis on which equity acts, Mark Leeming observes that a document should not ordinarily be rectified in equity unless it is shown that there is an inadequate remedy at law [204] . This is not to gainsay that exceptionally, rectification may be granted in equity even where an error can be rectified as a matter of construction, out of an abundance of caution lest there be confusion [205] . In a sense, it is ordinarily the case that the court will construe a document before rectifying a document [206] . That is a question of proper approach. However, procedurally for decades in New South Wales (in appropriate cases), it has been permissible and consistent with the Court’s power to regulate its processes to ensure a just, quick and cheap disposition of the real issues in proceedings, [207] for rectification relief in equity to be claimed in the same proceedings as a claim for rectification by construction [208] .
Equitable rectification is historically and accordingly properly understood as being a remedy in respect of instruments generally rather than merely or only in respect of the sub-class of instruments represented by contracts or agreements [209] . That observation is relevant to our understanding of what is required – and in particular, what constitutes a sufficient common intention – to establish an entitlement in equity to rectification of an instrument*.*
For relief by rectification in equity, it must be demonstrated that, at the time of the execution of the written instrument sought to be rectified: [210]
there was an “agreement” between the parties in the sense that the parties had a “common intention”;
the written instrument was to conform to that “agreement”; and
the written instrument does not reflect the “agreement” because of a common mistake.
It is not necessary for communication of that common intention by express statement [211] , but it must be established that it is the parties’ true/actual intention, mutually held, as viewed objectively from their words or actions [212] . The ‘true/actual’ [213] common intention has often been referred to by intermediate appellate courts as the subjective intention [214] . That terminology is perhaps apt to create confusion with the fact that the court discerns intention objectively. Likely for that reason, the High Court in Simic preferred terminology of the ‘true/actual’ [215] common intention of the parties.
The requirement for an ‘outward expression of accord’ was not per se adopted by the majority of the High Court in Simic. Kiefel J addressed the question noting that Wilson J in Pukallus v Cameron appeared to prefer the view that such a ‘outward expression of accord’ was not itself a requirement for rectification but its absence may be evidentiary in the sense of bearing upon the question of whether the burden of proof can be discharged [216] .
The ‘true/actual’ common intention may be inferred from words and conduct. However, Kiefel J noted that a court does not merely accept what a party says was in his or her mind, but instead considers and weighs admissible evidence probative of intention. Further, such intention would be insufficiently proved by reference to a party’s state of mind which remained undisclosed in the course of negotiations [217] .
It should not pass without observation that in Simic the joint judgment referenced Mason J’s reasons in Maralinga v Major Enterprises at 350-351 and Campbell JA’s reasons in Ryledar at [182] and [185].
The parties’ intentions might have not been formed (or if formed might have varied over a period of time) prior to the final contract. A common intention might be formed either well in advance or any just before the time of contract. However, it is the final true/actual common intention i.e. the one present at the time of the execution of the written instrument sought to be rectified, which is critical [218] .
Campbell JA has observed that “equity does not enforce every passing intention that a person has [rather] it enforces intentions concerning certain subject matters, formed in certain circumstances, that come to be enforced in certain other circumstances” [219] .
Appellate authority has consistently drawn attention to the requirement that a party seeking rectification bears a heavy onus of “clear and convincing” proof to obtain relief [220] . It must be “demonstrated with clarity that the parties had a sufficiently precise intention that the Court can determine both the substance and the detail of the precise variation to be made to the wording of the instrument” [221] . The NSW Court of Appeal has recently endorsed these principles [222] .
The remedy described above requires precision regarding words that are to be struck out or inserted [223] . If a particular change to some words will result in some other words of the document operating in a different way, rectification will be justified only if that different operation of those other words is shown to be in accordance with the common intention of the parties [224] .
In Ryledar, Campbell JA stated that the requirement that a common intention must be in some manner disclosed is also consistent with the rationale on which rectification is granted [225] , going on to cite authority that the basis for seeking rectification is in ‘mistake’ [226] . However, his Honour noted that a further aspect is involved which explains why granting rectification of the contract, rather than some other remedy such as rescission, is the appropriate response to the problem. Citing Story, Commentaries on Equity Jurisprudence as Administered in England and America [227] , his Honour identified the basis as being not merely mistake but prevention of unconscientious conduct in taking advantage of the common mistake [228]
… the type of unconscientiousness that is prevented by the availability of the equity to rectify a written contract is that that would occur if a party to the contract sought the benefit of those legal rights he would have if the document contained the agreement that the parties had made, when the document does not accurately state the common intention that the parties had.
315 …If two negotiating parties each had a particular intention about the agreement they would enter, and their intentions were identical, but that intention was disclosed by neither of them, and they later entered a document that did not accord with that intention, what would be the injustice or unconscientiousness in either of them enforcing the document according to its terms?
316 For the reasons I have given, the common intention that is required to grant rectification is subjective. Even though there is a requirement for the intention to be disclosed before it can count as a common intention, that disclosure need not be by words that say in substance “this is my intention”. The need for disclosure fills the role of being a limitation on the types of subjective intention that can be enforced through the remedy of rectification, or a limitation on the circumstances in which a subjective intention must exist before it can be enforced through the remedy of rectification. It still remains that proof of the subjective intention of the parties to the contract is fundamental to the grant of rectification. …….
Having regard to the above, there is an important distinction between some disclosure of intention by words or conduct, and an outward expression of accord. As intimated by Kiefel J, in turn referencing Wilson J in Pukallus v Cameron, the distinction is essentially evidentiary.
In this respect, Mr Elliott SC’s submission (as follows) seems to me to correctly or at the very least appropriately, point up this distinction [230]
What Ryledar, like Simic, demonstrates, is that the mode of communication need not be by way of express statement such as “I intend that … or “I want a clause that says…”. The intention may be communicated in more nuanced ways, with a particular “gestalt” that may exist, for example between two specialist doctors (to take the example in Ryledar at [281]) being such as to enable each to understand from what is actually communicated about a particular proposed transaction that each holds a particular intention.
459 … First, both the social institution of making contracts in writing, and the practical importance associated with it, of people ordinarily being able to rely upon a document, that is apparently regular, meaning what it says, contribute to the need for care in granting rectification. (Sometimes if there is a real prospect that third parties might have been misled by the apparent regularity of a document that can also provide a discretionary reason for refusing the remedy). Second, there is a “danger of imposing on a party a contract which he did not make”: Bank of Montreal v Vancouver Professional Soccer Ltd (1987) 15 BCLR (2d) 34 at 36 per McLachlin JA.
460 There is also a reason more closely tied to the facts of some individual cases why a claim by a person who has signed a written document that it does not embody what he or she really intended is the type of claim that, of its nature, needs to be looked at with care. It is connected with what is involved in making the factual finding that a common intention has been misrecorded.
…
461 To conclude that the parties have misrecorded their common intention in that sort of situation involves the solicitors on both sides of the transaction having each failed to grasp and express the intention of his or her own client. In other words, each of the solicitors has been mistaken, and, furthermore, mistaken in the same way. There is a measure of inherent unlikelihood in such an event happening. If the words of which rectification are sought are clear in meaning on their face, that unlikelihood is compounded – one would not ordinarily expect two lawyers, each professional dealers in language, to make the same mistake about the meaning of words that are clear on their face. However, we know that sometimes even experienced solicitors take or are given inadequate instructions, or misunderstand their instructions, and in consequence misrecord their client’s intention, so these matters are no more than reasons for caution in making the factual findings upon which a rectification order is based.
The word fiduciary derives from the Latin word ‘fiducia’, the primary meaning of which is ‘trust’, with secondary meanings of confidence and reliance [233] . The etymology of the word explained in the Oxford English Dictionary shows that in Roman Law fiducia denoted the transfer of a right to a person subject to the obligation to transfer it again at some future time or on some condition being fulfilled [234] .
Broadly speaking, within the law certain are recognised as being fiduciary relationships (status-based fiduciary relationships). Beyond that, fiduciary relationships might arise by dint of the factual circumstances in any given situation (fact-based fiduciary relationships).
In relation to status-based fiduciary relationships (such as trustee and beneficiary, agent and principal, solicitor and client, employee and employer, director and company and partners) Mason J in Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 (Hospital Products) describe them in the following terms [235]
The critical feature of these relationships is that the fiduciary undertakes or agrees to act for or on behalf of or in the interests of another person in the exercise of a power or discretion which will affect the interests of that other person in a legal or practical sense. The relationship between the parties is therefore one which gives the fiduciary a special opportunity to exercise the power or discretion to the detriment of that other person who is accordingly vulnerable to abuse by the fiduciary of his position. The expressions “for”, “on behalf of”, and “in the interests of” signify that the fiduciary acts in a “representative” character in the exercise of his responsibility, to adopt an expression used by the Court of Appeal.
It is partly because the fiduciary’s exercise of the power or discretion can adversely affect the interests of the person to whom the duty is owed and because the latter is at the mercy of the former that the fiduciary comes under that the fiduciary comes under a duty to exercise his power or discretion in the interests of the person to whom it is owed
The scope of a fiduciary obligation is a separate enquiry to the existence of the fiduciary obligation or relationship [239] .
In both status-based (or well-established or traditional cases) of fiduciary duty and fact-based cases of fiduciary duty it is important to identify the scope (or subject matter) and content of the duty [240] .
For example, it has been said that “the relationship of solicitor and client has at its core an element of confidence and influence which equity will preserve and protect. Nevertheless, the confidence and influence are not always so pervasive as to require equitable intervention in every facet of the relationship” [241] . The facts of each case, whether status-based or fact-based fiduciary obligations, act to define the extent and content of the duty.
The scope of a fiduciary duty has to be moulded to the nature of the particular relationship and the facts of the case [242] . For example, in the case of a solicitor, the terms of that retainer will normally be central to determining the scope [243] .
The formal position of the High Court is that fiduciary obligations are primarily proscriptive (negative) rather than prescriptive (positive) in nature [244] such that the fiduciary is bound in one sense not to do certain things rather than actively compelled to do certain things, achieve specific outcomes or take positive measures.
Whatever the origins of the proscriptive/proscriptive dichotomy, it is clear that it was highlighted or came to the fore in the early to mid-1990s. In 2015, the authors of MGL identify a number of cases in 1994 as a source of the proscriptive confinement position [245] . In the Australian legal hierarchy, that dichotomy is traceable [246] in particular to the High Court decision in 1996 in Breen v Williams [247] . Justice Fabian Gleeson, in a paper in 2017 [248] , noted this distinction was subsequently affirmed in a number of later High Court cases including Pilmer v Duke Group Limited (in liq) [249] in 2001, Friend v Brooker [250] in 2009 and Howard v Federal Commissioner of Taxation [251] in 2013. The ‘proscriptive’ terminology is still used by the current High Court even very recently [252] .
Obvious proscriptive obligations are those not to obtain any unauthorised benefit from the relationship (the no profit rule) and not to be in a position of conflict (the conflict rule) [253] .
Eminent text writers and other authors [254] have doubted the rigour of the dichotomy. Thus, the learned authors of Meagher, Gummow and Lehane’s Equity – Doctrines and Remedies in 2015 stated [255]
There is no doubt that fiduciary duties in many of their standard operations are negative and proscriptive in character. The question is whether they can in some instances, perhaps quite infrequently, also have a prescriptive character. Arguably, the distinction between prescriptive and proscriptive duties was drawn too sharply in Breen v Williams.
Part of the debate centres around a fiduciary’s obligation of disclosure. Formally, disclosure by the fiduciary is seen as part of a defence of fully informed consent [256] . Others perceive disclosure as prescriptive or a positive duty.
There is also a very practical difficulty with maintenance of the dichotomy which arises out of the operation of different aspects of law. Fundamentally, any given factual circumstances may give rise not simply to the potential application of equitable principles but also common law and statutory principles. Thus, even if one were to accept that a fiduciary was bound by only proscriptive duties, a particular factual situation might attract common law duties or also statutory duties which are seen as prescriptive, for example in respect of disclosure.
There is some support in case law to describe certain fiduciary duties as requiring positive action. Both MGL and Justice Fabian Gleeson observed that the Western Australia Court of Appeal in Westpac Banking Corporation v Bell Group Ltd (in liq) (No 3) (2012) 44 WAR 1, held that duties of company directors to act in good faith in the interests of the company and to act for proper purposes are fiduciary duties [257] , thus effectively distinguishing the proscriptive/prescriptive dichotomy as being limited to the facts in Breen v Williams [258] .
it connotes an association of persons for the purposes of a particular trading, commercial, mining or other financial undertaking or endeavour with a view to mutual profit, with each participant usually (but not necessarily) contributing money, property or skill.
Generally, the term is apposite to refer to a joint undertaking or activity carried out through a medium other than a partnership: such as a company, a trust, an agency or joint ownership [260] .
However, whether or not the relationship between joint venturers is fiduciary will depend upon the form which the particular joint venture takes and upon the content of the obligations which the parties to it have undertaken [261] .
Fiduciary obligations may arise in relation to one joint undertaking [262] .
If the joint venture takes the form of a partnership, the joint venturers will be under fiduciary duties to one another, including fiduciary duties in relation to property the subject of the joint venture, which are the ordinary incidents of the partnership relationship, though those fiduciary duties will be moulded to the character of the particular relationship [263] .
A joint venture can exist in relation to a prospective project [264] . In UDC, the High Court rejected a submission that no fiduciary duties arose between prospective participants in a joint venture until a formal agreement was actually executed. Mason, Brennan and Deane JJ stated [265]
In particular, a fiduciary relationship with attendant fiduciary obligations may, and ordinarily will, exist between prospective partners who have embarked upon the conduct of the partnership business or venture before the precise terms of any partnership agreement have been settled. Indeed, in such circumstances, the mutual confidence and trust which underlie most consensual fiduciary relationships are likely to be more readily apparent than in the case where mutual rights and obligations have been expressly defined in some formal agreement.
Mr Castle SC also submitted that fiduciary duties may be owed by parties in a fiduciary relationship even though they had or have agreed to terminate their relationship.
An important case in this respect is the decision of the High Court in Chan v Zacharia [267] . In that case it was held that, in respect of a dissolved medical practice, Dr Chan, as a former partner of Dr Zacharia, owed him a fiduciary duty in respect of the partnership property [268] .
The basic facts were as follows [269] . From August 1979 the partners conducted a medical practice from premises in South Australia leased by Dr Zacharia. In November 1979 the owner granted a lease of premises to the doctors for three years (preoperative from 1 January 1979) with the lease containing an option for a further period of two years exercisable on or before 30 September 1981. In May 1981, Dr Chan gave notice dissolving the partnership and declined to join with Dr Zacharia in exercising the option. On 30 November 1981, before the affairs of the partnership had been wound up, the owner granted the lease of the premises to Dr Chan. In proceedings in the South Australian Supreme Court, Mitchell J declared that any interest acquired by Dr Chan in the new lease of the premises was an asset of the former partnership and held by him on constructive trust for the partnership. Her Honour’s decision was affirmed on appeal. The High Court rejected Dr Chan’s appeal.
The doctors’ partnership was regulated by a partnership agreement [270] and the provisions of the Partnership Act 1891 (SA). Gibbs CJ held the obligation of “perfect fairness and good faith” owed by the partners to one another continued after dissolution, so far as was necessary to wind up the affairs of the partnership [271] . In the result, his Honour held that Dr Chan was constructive trustee of any interest he obtained under the agreement for a new lease [272] .
Murphy J dissented, stating that it was not equitable to impose on Dr Chan a duty to join in the exercise of the option for a further term with a person to whom he was antagonistic and who was his adversary in litigation [273] .
Deane J analysed the matter by reference to the doctors each occupying two related and overlapping roles as regards the legal rights (including the option) under the lease. The first role was as a trustee of those legal rights, the second was as a member of the former partnership of which the beneficial interest in those rights was an asset [274] . His Honour regarded the first role of trustees plainly fiduciary involving fiduciary obligations in relation to the trust property [275] . In relation to the partnership relationship, his Honour considered, and rejected, the submission that Dr Chan’s role as a former partner was not a fiduciary one involving fiduciary obligations in respect of the property of the dissolved partnership [276] . His Honour acknowledged that whilst the relationship between the parties was curtailed and altered by the dissolution of the partnership, it did not cease but continued at least in respect of partnership property for the purposes of winding up the affairs of the partnership, noting that his partner remained under a fiduciary obligation to cooperate in and act consistently with the agreed procedure for the realisation, application and distribution of the partnership property [277] .
Brennan J agreed with Deane J that Dr Chan held the fruits of his conduct upon a constructive trust for those entitled to the property of the dissolved partnership [278] . His Honour reserved the question of whether concurrent fiduciary duties (as trustee of partnership property on the one hand and as a former partner on the other) were owed - it being unnecessary to decide the issue of whether certain presumptions arose, on the facts of the case [279] .
Dawson J, reinforced the notion that a fiduciary relationship continues for the purposes of realisation application and distribution of partnership property, stating as follows [280]
I agree with Deane J. that the two partners held the lease of the premises and any rights under the lease as trustees for the partnership and after dissolution for the partnership in receivership. Moreover, there was a fiduciary relationship between the partners arising from the partnership which survived its dissolution and extended to the partnership property. The relationship continued for the purposes of the realization, application and distribution of the partnership assets in accordance with the terms of the partnership agreement and any obligations imposed by law. I agree, therefore, with Deane J. that both as a trustee and as a former partner Dr. Chan is required to account as a constructive trustee for any benefit or gain that he has received in seeking to obtain a new lease for himself in disregard of his position as a trustee of the lease and as a partner in the partnership being wound up.
There may be cases in which fiduciary duties are found to arise in the context of mere negotiations where the nature of the parties’ dealings is such that mutual confidence and trust is readily apparent [281] .
Recently, the Court of Appeal confirmed the proposition that fiduciary obligations generally do not continue beyond the termination of the fiduciary relationship [282] . Whilst an exception to that proposition may arise where a director resigns in order to perfect a breach of duty which he or she has earlier commenced [283] , the Court of Appeal saw no reason to extend that exception to the position where a director or fiduciary ceases to hold office because he or she is removed from that office [284] .
Direct liability for misleading and deceptive conduct, under s 18 of the ACL, depends upon whether the impugned person’s conduct is objectively misleading or deceptive, or likely to mislead or deceive. A person’s knowledge or intention to mislead or deceive is immaterial to that determination [285] .
In Care A2 Plus, Bell CJ addressing the role of silence and reasonable expectation of disclosure stated as follows [286]
- In Nadinic v Drinkwater [2020] NSWCA 2, Barrett AJA, with whom Meagher and Leeming JJA agreed, observed at [40] that:
“Silence is itself a fact that must be assessed like any other and, unless the circumstances as a whole are such as to give rise to a reasonable expectation of disclosure of some relevant fact known to exist but not communicated, there is no basis on which silence of itself can warrant an inference of a representation that the fact does not exist.”
- The role of silence, and misleading and deceptive conduct more generally was considered extensively in Miller. In Wormald v Maradaca Pty Ltd [2020] NSWCA 289 at [111], I sought to isolate certain key propositions to emerge from Miller as follows:
(1) “the language of reasonable expectation [found in cases such as Demagogue] is not statutory: at [19]”;
(2) “in commercial dealings between individuals or individual entities, characterisation of conduct will be undertaken by reference to its circumstances and context: at [20]”;
(3) “close analysis of all of the circumstances of a transaction embraces a consideration of the sophistication of the parties and their experience in their fields: at [91]”;
(4) “the knowledge of the person to whom the conduct is directed may be relevant: at [20]. See also Campbell v Backoffice Investments Pty Ltd (2009) 238 CLR 304 at 319; [2009] HCA 25 at [26]”;
(5) “the existence of common assumptions and practices established between the parties or prevailing in the particular profession, trade or industry in which they carry on business may also be relevant: at [20]”;
(6) “the analysis is objective: at [20]”;
(7) “the analysis is to be ‘unmediated by’ high moral expectations exceeding the requirements of the general law: at [21]”;
(8) “the statutory prohibition on misleading or deceptive conduct does not require a party to commercial negotiations to volunteer information which will be of assistance to the decision-making of the other party: at [22]”; and
(9) “the failure to make reasonable inquiries, whilst not automatically defeating a statutory claim for damages for misleading or deceptive conduct, is a circumstance that is relevant to a consideration as to whether a failure to make disclosure is correctly characterised as misleading: at [91]”.
Mr Castle SC submitted that unilateral mistake may be available where fiduciary duties are engaged between parties, citing Agip S.p.A. v Navigazione Alta Italia S.p.A. [1984] 1 Lloyds Report 353 (Agip) at 362 and 365 (obiter), and submitted that this approach was consistent with the comments of Campbell J in Ryledar at [305]-[313] that equitable remedies are there to protect against unconscionable conduct [287] .
It is useful to examine the Agip passages, being parts of the reasons for judgment of Slade LJ (a decision of the English Court of Appeal) with whom Oliver and Gough LJJ (at 366) agreed.
The first passage, at 361-362, is as follows
One significant feature, however, is common to all of the Roberts, River/ate and Bates decisions. In all the various formulations of the relevant principle in the judgments in those cases, none of the members of the respective Courts suggested that rectification can properly be granted on account of unilateral mistake unless the defendant had actual knowledge of the existence of the plaintiff’s mistake at the time when the contract was signed. Since, in the present case, the Judge has specifically found that the defendants were not aware of the mistake of IIP at the time of signature of the charter-parties, and there is no appeal against this finding, it is obvious that the plaintiffs, if they are to succeed on this appeal, must in some way succeed in persuading the Court to extend the frontiers of the circumstances in which rectification may be granted on the grounds of mere unilateral mistake, beyond the frontiers established by any of the cases cited. The Court, therefore, must in my opinion proceed all the more cautiously before granting rectification of these two written instruments against defendants who at the time when the negotiations first ripened into a binding contract, intended to contract on the terms which were reflected in the written charter-parties and on no other terms.
While it is not necessary to go so far for the purpose of this present decision, I might perhaps add that I strongly inclined to the view that in the absence of estoppel, fraud, undue influence or a fiduciary relationship between the parties, the authorities do not in any circumstances permit the rectification of a contract on the grounds of unilateral mistake, unless the defendant had actual knowledge of the existence of the relevant mistaken belief at the time when the mistaken plaintiff signed the contract. In view of the drastic nature of such an order, so far as the non-mistaken defendant is concerned, the consequences of any such conclusion may not appear unduly harsh. I do not say that even where estoppel, fraud, undue influence or a fiduciary relationship exists rectification will necessarily be an available or appropriate remedy.
In light of the concluding sentence of the passage, I do not consider that Slade LJ was giving any strong support for the proposition that the existence of a fiduciary relationship would more easily enliven a claim for rectification.
Mr Castle SC also contended that relief for unilateral mistake is not limited to cases of actual knowledge by the other party, citing Taylor v Johnson (1983) 151 CLR 422 at 432 [288] (Taylor v Johnson).
Mr Castle SC also cited Leibler v Air New Zealand Ltd [No 2] [1999] 1 VR 1 as a rectification case involving deletion of a clause. On the facts, the trial judge had found (inter alia) that deletion of a certain clause had not been agreed and that when notified of the deletion those acting for the other side understood that its deletion was a mistake. Mr Castle SC observed that the issue of whether the deletion of the clause was due to a mistake was a question of fact to be decided on the evidence [289] ; more particularly he referenced the judgement of Kenny JA noting the decisions both in Agip and Taylor v Johnson. Her Honour stated (and Winneke P and Phillips JA at [11] substantially agreed)
[62] The case for the appellants rested on the proposition that actual knowledge of the mistake was necessary. Strong support for this was derived from Agip S.p.A. v Navigazione Alta Italia S.p.A. [1984] 1 Lloyd’s Rep. 353 at 365; also [1983] 2 Lloyd’s Rep. 333 at 343. The Australian authorities may, however, support some lesser test. In Taylor v Johnson (1983) 151 C.L.R. 422 at 432 the majority, discussing the availability of rescission for unilateral mistake, referred to the sufficiency of an awareness by the non-mistaken party “that circumstances exist which indicate that [the mistaken party] is entering the contract under some serious mistake or misapprehension.” See also Misiaris v Saydels Pty. Ltd. at 58,448 and Commonwealth v VL Investment Pty. Ltd. at 63,894-5. I do not, however, need to resolve the question whether the test in Australia is less onerous than in England, because the trial judge’s finding was as to the appellants’ actual knowledge and, in my view, that finding cannot be set aside, having regard to the fact that it depended very much on his Honour’s estimation of the relevant witnesses: cf. Devries v Australian National Railways Commission (1993) 177 C.L.R. 472 at 479.
[63] In making his findings as to actual knowledge, the trial judge relied upon the analysis of forms of knowledge made by Peter Gibson J. in Baden v Société Générale [1993] 1 W.L.R. 509 and applied by Millett J. in Agip (Africa) Ltd. v Jackson [1990] Ch. 265 at 293 and by Stuart-Smith L.J. in Commission for the New Towns v Cooper (Great Britain) Ltd. at 694-5. I do not think that his Honour erred in so doing; and I do not think that any error can be discerned in his Honour’s finding that, on the balance of probabilities, “on and after 29 October down to the time of execution of the shareholders agreement [Isi Leibler], and through him NAPL, had actual knowledge within the meaning of the two categorisations which in Baden were held to constitute actual knowledge” that A.N.Z. had mistakenly deleted cl. 10.9.
The decision does not qualify Taylor v Johnson.
Mr Castle SC also referenced Igloo Homes Pty Ltd v Sammut Constructions Pty Ltd [2005] NSWCA 280 being the appeal of a rectification case heard by Campbell JA at first instance (Igloo). Ipp JA at [2]-[171] gave the leading judgment, and Santow JA at [1] agreed with Ipp JA. However, the passages cited by Mr Castle SC at [199], [202] and [203] [290] were in a separate judgement of Basten JA.
The full statement of principle of Basten JA is as follows
Legal principles
198 For the reasons given by Ipp JA, it is generally necessary to establish a common intention, not reflected in the written contract, in order to effect rectification. On one view, the proper inference was that there was a common intention that no additional amount should be paid by way of GST in excess of the amount calculated under the margin scheme. However, that is the limit of the common intention and the authorities to which the Court was taken do not reveal whether rectification is generally available to give effect to a common negative intention in this manner.
199 However, in some circumstances rectification may be an available remedy because of a unilateral mistake. Such cases involve an element of sharp practice on the part of the non-mistaken party, in circumstances where it would be unconscionable for that party to take the benefit of the other party’s mistake. An example is A. Roberts & Co Ltd v Leicestershire County Council [1961] Ch 555. In that case Pennycuick J was satisfied that, prior to execution of the contract, the agent of the Council responsible for administering the project knew that the construction company was under a misapprehension as to the date for completion contained in the contract. The Council officers who accepted the tender had changed the date for completion (actually extending it by a year) for the benefit of the Council, without pointing out to the company that the change had been made.
200 The Court found no deliberate dishonesty on the part of the officer of the company, the only apparent motive for not correcting the company’s misunderstanding being that it would have been extremely inconvenient for the Council if the contract were to go off. Nevertheless, rectification was ordered.
201 That reasoning was applied by the Full Court of the Supreme Court of Queensland in Johnston v Arnaboldi (1990) 1 Qd R 138. As explained by Connolly J at 144:
“For one party to a contract to permit the other to execute it, knowing that he is mistaken about a particular term, the mistake being to the advantage for the former, has been categorised as dishonest and will entitle the mistaken party to rectification: A. Roberts & Co Ltd v Leicestershire County Council [1961] Ch 555. … In Riverlate Properties Ltd v Paul [1975] Ch 133 the type of situation in A. Roberts was described as involving a degree of sharp practice.”
202 Although I do not read A. Roberts as a case involving dishonesty, the circumstances in which relief can be given on this basis would appear to require a level of unconscionable or unconscientious conduct, by which one party, being aware of a mistake on the part of the other, for which the non-mistaken party is responsible, fails to point out the mistake, and then seeks to enforce that term to the detriment of the non-mistaken party. Accordingly, the question is whether the facts of the present case satisfy that test.
203 The difficulty faced by the Appellant is that no particular agent of the company, on the findings made by his Honour, had an actual awareness of the difference in the underlying assumptions of the respective parties. The need for such a unitary awareness was explained by Young J in Eighth SRJ Pty Ltd v Merity (unrep, BC 9701110, 25 March 1997), referring to Armstrong v Strain [1952] 1 KB 323 at 246 and Franich v Swannell (1993) 10 WAR 459. In Franich, a vendor aware of a defect in the property placed the property with an estate agent, to whom the vendor provided a sanitised engineer’s report, so that the agent could sell without knowledge of the problem affecting the property. However, the statement by Ipp J in that case concerning the difficulty of attributing the conduct of the estate agent to the principal was made, not in relation to the question of knowledge, but in relation to an attempt to attach to the owner the “element of acting in trade or commerce”, necessary to attract the operation of the Trade Practices Act. It may well be the case that, where the principal knows a representation to be false, but channels it through an innocent agent, the principal will nevertheless be liable for the misrepresentation: see Anglo-Scottish Beet Sugar Corporation Ltd v Spalding Urban District Council [1937] 3 All ER 335 at 343 (Atkinson J), referred to with approval in Armstrong v Strain [1952] 1 KB 232.
204 Furthermore, this line of authority is concerned with proceedings in which fraud or dishonesty is sought to be imputed as against the principal. Care must be taken in applying the relevant principles established in these cases to circumstances where it is sought to establish unconscientious behaviour on behalf of a corporation, in seeking to retain a benefit under a contract.
Mr Castle SC submitted that without dishonesty, rectification may be an available remedy because of a unilateral mistake, where there is an element of sharp practice on the part of the non-mistaken party, in circumstances where it would be unconscionable for that party to take the benefit of the other party’s mistake (citing Igloo at [199]). However, he appeared to take issue with the statement of Basten JA at [203] that no actual knowledge of the mistake was established, asserting that it was contrary to Taylor v Johnson.
Mr Castle SC submitted that Taylor v Johnson establishes that relief for unilateral mistake is not limited to cases of actual knowledge by the other party, which actually is (with respect) not quite the full picture. Their Honours (Mason ACJ, Murphy and Deane JJ) were very precise in describing the principle as follows (at 432-433)
The particular proposition of law which we see as appropriate and adequate for disposing of the present appeal may be narrowly stated. It is that a party who has entered into a written contract under a serious mistake about its contents in relation to a fundamental term will be entitled in equity to an order rescinding the contract if the other party is aware that circumstances exist which indicate that the first party is entering the contract under some serious mistake or misapprehension about either the content or subject matter of that term and deliberately sets out to ensure that the first party does not become aware of the existence of his mistake or misapprehension. What we have said is sufficient to demonstrate the broad basis of support which the authorities provide for that proposition. Moreover, and perhaps more importantly, it is a principle which is best calculated to do justice between the parties to a contract in the situation which it contemplates. In such a situation it is unfair that the mistaken party should be held to the written contract by the other party whose lack of precise knowledge of the first party’s actual mistake proceeds from wilful ignorance because, knowing or having reason to know that there is some mistake or misapprehension, he engages deliberately in a course of conduct which is designed to inhibit discovery of it. Our comment can, for present purposes, be limited in its application to the case where the second party has not materially altered his position and the rights of strangers have not intervened.
Terms may be implied in contracts in certain circumstances. The purpose of implied terms has been said to be twofold. First, to fill gaps in a contract by supplying standards of performance that have been omitted or left incomplete by the parties. Secondly, to add unstated obligations to the terms expressed by the parties themselves to promote fair and reasonable contract performance [291] .
Consideration of whether terms are implied involves a Court first identifying the express terms or the actual intention of the parties [292] .
The implication of terms in contracts under the criteria in BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266 (BP Refinery v Hastings) differs in cases where there is a formal contract, complete on its face from those where there is no formal contract [293] .
There are different kinds of implied terms - including obligations implied in contracts (universal terms), those implied in particular types of contract (generic terms), or those implied in a specific contract (specific terms) [294] . Certainly, implied terms can be excluded.
However, this categorisation is not precise. The point is noted by the authors of Cheshire & Fifoot. Thus, there are issues as to whether some terms which are said to be implied a more properly described as rules of construction [295] and [296]
.. the implication of a duty to co-operate or to act in good faith has in some cases been justified as a generic or specific term. Conversely, obligations have been implied as specific terms, and concurrently derived from the application of generic or universal terms.
However, some statutory implied terms (leaving aside debate as to whether they are strictly speaking implied terms or not) cannot be excluded [297] . Further, there is an issue as to whether certain universal implied terms can be excluded [298] .
Universal implied terms are said to include a duty of cooperation and a duty to act in good faith.
The duty of cooperation is to do all such things as are necessary on his part to enable the other party to have the benefit of the contract [299] . Each case necessarily turns upon its own facts. However, generally the duty may require certain cooperative acts by the parties to the contract one another. It may act as a restraint on the exercise of the right to terminate a contract for breach [300] . However, it may not apply when the party said be entitled to the benefit of the duties itself in breach of contract [301] .
However, there is a distinction between the benefit of the ‘contract’ and the ‘other party’. What is implied by means of cooperation is defined by what has been promised under the contract in question, and not on some absolute obligation to look after the benefit of the other party [302] . The ambit of the duty to cooperate in a particular contract is also affected by its commercial context and limited by what can reasonably be required in the circumstances [303] . Further, in particular, there is no implied duty to cooperate in bringing about something which the contract does not require to happen [304] .
The extent to which every contract imposes upon each party a duty of good faith and fair dealing in its performance and its enforcement is debatable. The notion of such a universal term was in NSW expressly raised by Priestley JA in Renard Constructions (ME) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234 at 268F-G. The authors of Cheshire & Fifoot cite Court of Appeal authority in which the court has been more circumspect in confirming such universal term [305] , instead regarding it as appeared to regard good faith as a generic term, implied in particular classes of contracts or perhaps even by criteria of ad hoc implication in specific contracts [306] .
For a term to be implied at law in a new category of case, it must be both reasonable and necessary [307] . In any event, as Giles JA observed, the inquiry, cannot be made in the abstract, because there may be exclusion by express provision or inconsistency with the terms of the contract on their proper construction and consideration of surrounding circumstances in the construction of the contract [308] .
Further, there is a question regarding the precise content of any obligation of good faith and reasonableness [309] . That is a disputable matter over which it is been said that there is a spectrum of opinion ranging from a view that good faith has no homogeneous meaning of general application to the view that it has an identifiable core meaning. However, there does not appear to be agreement regarding the so-called identifiable core meaning with one view and being a type of loyalty to the contract and another restraint on self-interest [310] . Even in this latter respect, whilst authors of Cheshire & Fifoot acknowledge that a duty of good faith has been implied in a significant number of cases that observed that more often than not, no breach of it has been found to have occurred, the reason being that such a duty would not constrain decisions and actions, reasonably taken as designed to promote the legitimate interests of the party [311] .
The distinction between a contractual duty of good faith from the duty imposed on fiduciaries is important. The authors of Cheshire & Fifoot state [312]
In this respect the duty of good faith imposed on contracting parties differs radically from the duty imposed on fiduciaries, which requires the suppression of self-interest where this is in conflict with the interest of the party to whom the fiduciary obligation is owed.
Sections 55(1) and 56(1) combine to produce the result that evidence probative of the existence of one fact in issue in a proceeding is admissible in the totality of the proceeding. The evidence, if admitted, is then available to be used in the totality of the proceeding in the assessment of the probability of the existence of any other fact in issue in the proceeding, including any fact in issue between parties to the proceeding other than the party adducing it, unless and to the extent that its admission is excluded, or its use is limited, by or under another provision of the Evidence Act.
Thus where in the same proceeding a plaintiff advances both construction and rectification, evidence of subjective intentions (typically, a party’s outwardly manifested understanding of the clause, even if not communicated to the other side) is relevant to the latter claim, and therefore admissible. Subject to the making of a limiting order, it will prima facie be available for use for all purposes. The question is not one of admissibility, but use.
The judgment is based on these findings. The jurisdiction of a court of equity to set aside a gift or other disposition of property as, actually or presumptively, resulting from undue influence, abuse of confidence or other circumstances affecting the conscience of the donee is governed by principles the application of which calls for a precise examination of the particular facts, a scrutiny of the exact relations established between the parties and a consideration of the mental capacities, processes and idiosyncrasies of the donor. Such cases do not depend upon legal categories susceptible of clear definition and giving rise to definite issues of fact readily formulated which, when found, automatically determine the validity of the disposition. Indeed no better illustration could be found of Lord Stowell’s generalisation concerning the administration of equity: “A court of law works its way to short issues, and confines its views to them. A court of equity takes a more comprehensive view, and looks to every connected circumstance that ought to influence its determination upon the real justice of the case”: The Juliana.
This point has influenced the determination of cases such as proprietary estoppel claims, with the Court the mindful of equity’s approach to context while nonetheless cautioning that it is necessary to bear in mind that many years after representations on which a person has acted, what has been assumed may change significantly [320] . Other more proximate factors arise or intervene and play their part. It is a matter of common experience, common sense.
In other realms of fact-finding and analysis (whether in a legal context or otherwise) whilst something may be contextual in the sense that it forms part of an overall narrative, ordinarily, the fact-finder or analyst does not accord equal weight or fixed or abiding significance to every element.
The requisite standard of proof for determining the facts in issue is on the balance of probabilities [321] . The Court may (inter alia), in deciding whether it is so satisfied that the facts in issue are established, take into account: (a) the nature of the cause of action or defence; (b) the nature of the subject‐matter of the proceeding; and (c) the gravity of the matters alleged [322] .
The heightened requirement for “clear and convincing proof” is preserved by the above statutory standard of satisfaction insofar as they permit the taking into account of the nature of the cause of action and bolstered by the statutory preservation of principles of equity, not excepted otherwise expressly or by necessary contentment [323] .
Formally, the only affidavits read were from each of Mr Alamin [324] and Mr Islam [325] .
Numerous objections were taken to the affidavit material. For the purposes of facilitating the efficient conduct of the hearing and use of court time each counsel provided a list of proposed rulings which I took into account in making rulings on evidence. The proposed rulings proceeded on the following basis [326]
The intention of the above rulings is to permit an efficient conduct of the hearing and use of Court time, and on the basis that the issues in dispute are to be determined only in accordance with evidence that satisfies the requirements for admissibility, and which is of sufficient probity and weight in its own terms to justify the making of findings in question.
**Proposed rulings in respect of plaintiff’**s evidence
1. Where relevance objections are taken (and generally) admit subject to relevance and subject to the question of the operation of the terms of the deed of settlement (including as to the release provision), noting the defendant’s position is that the majority of the material is irrelevant and/or falls within the scope of the release provision in the deed of settlement.
2. Hearsay admit only as to the fact of the conversation, subject to paragraph 1 above.
3. Form/submission/opinion -the admissibility and weight (if any) to be attached to them may be determined, where necessary, in the final judgment.
1. For affidavits read by the first defendant (identified in the “List of Affidavits Intended to be Relied Upon by Hamidul Islam” provided to Meek J’s Associate by the first defendant’s solicitors (List of Affidavits)):
a. Where relevance objections are taken (and generally), admit subject to relevance and subject to the question of the operation of the terms of the deed of settlement.
b. Where hearsay objections are taken, admit only as to the fact of the conversation, subject to paragraph 1 above.
c. Where form/submission/opinion objections are taken, the admissibility and weight (if any) to be attached to them may be determined, where necessary, in the final judgment
2. For each affidavit not on the List of Affidavits but tendered by the first defendant, admit only as evidence that the affidavit was served in the proceedings marked on the document (around the date of the affidavit), not as proof of the truth of any statements in the affidavit.
Each of Mr Alamin and Mr Islam were cross-examined.
Previously I have mentioned that in most cases, it is unhelpful to generalise regarding the evidence of witnesses including because there may be some evidence of each of the principal witnesses that to varying degrees will be reliable or unreliable and creditable or not [331] .
Bearing that caution in mind, I make some brief general observations Mr Alamin and Mr Islam. However, throughout the judgment I more particularly deal with the evidence I accept on each disputed issue.
Mr Alamin’s evidence reflects what he later wished the position to have been, formed at a time when the payments were overdue and he was being pressed for payment, and needed to seek to justify his non-payment. It might be that Mr Alamin has convinced himself that his version of events is true.
There was one aspect in which Mr Elliott SC did contend that Mr Alamin’s evidence was deliberately evasive, namely in relation to the particular orders he was seeking in respect of winding up, constantly deflecting and saying that he would prefer a buyout [333]
I will address an alleged failure to comply with Browne v Dunn (1894) 6 R 67 (Browne v Dunn) below.
Mr Castle SC submitted that on the whole, I ought to be cautious about Mr Islam’s evidence where it is not otherwise consistent with documents or probabilities. Nonetheless, he took a more nuanced position. For example, he did not ask me to reject his evidence about the state of the property projects [334] .
However, he contended that:
there were occasions in which Mr Islam had stated matters in affidavits (in the 2021 proceedings or on other occasions) which were no longer consistent with these proceedings [335] .
Mr Islam’s public profile on LinkedIn details his attendance at the London Business School and asserts that he had studied accounting there [336] , which was at odds with his affidavit evidence that he had neither business education nor business experience [337] .
Mr Islam’s conduct in saying that he had concern for the Islamic community, when his actions demonstrated otherwise, such as in “not lifting the PPSR” [338] .
Mr Islam disputed that his educational experience was of the same order as that Mr Alamin. I doubt that much turns on the extent Mr Islam’s business experience. Mr Islam’s assertion about lack of experience was deposed to in the context in which he was indicating his experience relative to Mr Alamin. Even then, Mr Alamin accepted that Mr Islam had very little business experience at the time of commencing the MH Group [339] .
It does not seem to me that much can be made of Mr Islam’s conduct as being contrary to his concern for the Islamic community. From his perspective, the alleged risk to people who had prepaid deposits in relation to 11 Woolgen was a matter which lay at the feet of Mr Alamin.
Mr Elliott SC submits that Mr Islam’s evidence was that he did not hold the alleged intention should be accepted [340] . On the critical issue of whether he held the alleged common intention, for reasons explained below, I accept that he did not.
Mr Castle SC submitted there were an extensive number of allegations and submissions made on behalf Mr Islam that were not put in cross-examination to Mr Alamin, and produced a table outlining the “most significant statements”. This was done by reference to 14 italicised themes as follows (which I will nominate as theme contentions (TC) (i.e. TC1 … TC14)) [341] :
“Improper motives of Mr Alamin for bringing these proceedings, with the implication that his motives were improper and/or the claims made have no justification” (TC1).
“Repetition of the allegations made by Islam in the 2021 proceedings about deception and misconduct to suggest they had a proper basis to impugn Alamin and his credit” (TC2).
“Aspects of the first offer of 17.11.28 [sic] [342] (CB 4/5078) – it did not include 82 Woolgen, included a first payment of $250,000 and the balance was not subject to the settlement of the properties” (TC3).
“After the rejection of the 17 November offer, Alamin never sought to connect the payment of the Settlement Amount to settlement of the properties” (TC4).
“Alleged motive for settlement included seeking to avoid a lengthy cross-examination about alleged dishonesty” (TC5).
“Alleged wrongful motivation and alleged breach of the Settlement Deed in having APGM Ltd as the purchaser of 82 Woolgen, where the Put and Call Option was executed by Murooj. These allegations are collected under the heading “Breaches of the deed” in the DS” (TC6).
“Alamin’s failure to call his lawyers, and the probabilities of what they would have advised him, are contrary to his case about his understanding that payment was connected to the purchase of 11 & 82 Woolgen” (TC7).
“Alamin’s acceptance in cross-examination that he only considered the amount of pre-sales for the first instalment means that the settlement payments were not tethered to the purchase of 11 & 82 Woolgen” (TC8).
“Alamin told Islam that he had a variety of sources of funds, which Islam had recounted in evidence on multiple occasions” (TC9).
“The rectification sought by Alamin allowed him to avoid making a payment, by deciding not to proceed with the purchase of the properties” (TC10).
“Alamin not only failed to pay the amounts under the Settlement Deed sum, but did not demonstrate his capacity to pay at the time of seeking the lifting of the charge, to allow the 11 Woolgen financing to proceed in April 2023, and unreasonably failed to pay Islam money available from the Angle Vale project” (TC11).
“Alamin should be disbelieved generally because of the answers which he gave in relation to the questions asked about him in relation to whether or not he wanted the order for winding up” (TC12).
“Alamin has not attempted to demonstrate any loss and damage” (TC13).
“Alamin failed to give crucially important evidence about his ability to work with Islam in completing the work of the joint venture” (TC14).
The submission, which referenced GWE v Commissioner of the Australian Federal Police (2020) 103 NSWLR 509; [2020] NSWCA 247 at [83]-[86] essentially involved an alleged failure to comply with Browne v Dunn [343] .
The consequence for which Mr Castle SC contended is that the alleged ‘offending’ parts of DS3 and the transcript ought be ‘struck through’, and put aside from consideration by the Court of the competing submissions of the parties on the substantive issues in the proceedings [344] .
Inter alia, the plaintiff’s note: (1) fails to recognise the distinction between a submission or conclusion available on the evidence as to particular primary facts, and the primary facts themselves, (2) fails to appreciate that submissions were based on the terms of documents which speak for themselves, and the fact it is not necessary to cross-examine a witness about what a document obviously states, (3) cannot deal with the fact that various submissions were put on a basis which made it perfectly plain that what was being described were the allegations in the 2021 proceedings and not factual findings contended for, (4) fails to recognise that a witness does not need to be cross-examined on a topic they have not given evidence about, and in particular, a witness does not need to be cross-examined about the absence of something occurring where the witness himself has not said it occurred, (5) fails to appreciate that various of the submissions were based on evidence given by Mr Islam after Mr Alamin had left the witness box, with the plaintiff deciding not to call Mr Alamin to give any evidence in reply to that further evidence.
Further, he contended that various parts of PS5 have been used as a segue into further substantive submissions on issues after the close of the hearing, contrary to assurances that that would not occur [347] .
Besides the general observations above, Mr Elliott SC addressed particular responses to Mr Castle SC’s submissions. I have referenced these below in my determination.
In Clayton v Clayton [2023] NSWSC 399 at [84]-[92], I addressed some remarks to the question of evidence that had not been cross-examined upon or was otherwise unchallenged.
Further, the following may be briefly noted regarding the rule in Browne v Dunn [348] :
The circumstances in which the rule will require matters to be put to a witness in cross-examination will depend upon the nature of the pre-trial preparation there has been, and whether that pre-trial preparation has been sufficient to give notice to a witness of the submission ultimately intended to be put to the Court [349] .
The rule does not apply where the witness is on notice that the witness’ version is in contest [350] .
The rule is not applied mechanically. Its very nature is such that what is sufficient in any given case to meet the requirements of procedural fairness will vary. Even when the rule applies so as to require a matter to be addressed in cross-examination, it should not be thought that the rule requires that each individual inconsistency be put to the witness [351] .
In line with the observations of Campbell J in West v Mead, I note that the exchange of affidavit evidence covered a number of aspects of the Browne v Dunn complaints in PS5. Nonetheless, I address the TC1-TC14 matters below.
TC1: Mr Elliott SC submitted that on various occasions he did put to Mr Alamin that his evidence was untruthful. However, in any event he contended that the nature of certain propositions did not require express cross-examination and in any event the ultimate submission about Mr Alamin’s evidence was more favourable than outright dishonesty. Ultimately there is no need for me to make a finding regarding Mr Alamin’s motives for bringing the proceedings. It is not suggested that I should make a finding that the proceedings are an abuse of process.
TC2: Mr Elliott SC submitted that he had made express in opening that there was no need for me to make findings in respect of the allegations made in the 2021 proceedings because the parties’ rights had been resolved by the Settlement Deed [352] . He certainly opened on that basis [353] .
Mr Castle SC in opening submitted to similar effect [354] . In closing submissions he stated [355]
Before I turn to the principles, I think I should note two things that I think are agreed. The first is that the deed was effective to wipe the slate clean as at November 2022 in terms of the past history, and so there’s no need for your Honour to decide any of the past allegations. I think that that’s something which has been common ground between us. Your Honour knows there are untested allegations and counter allegations. Mr Alamin said certain things about Mr Islam about his involvement in the business, and Mr Islam has said quite a lot about his perceptions of Mr Alamin, but we really say none of that greatly matters because those things were wrapped up in the deed, and the factual inquiry is focused on the context in which the deed was entered into and subsequent conduct. That’s the first broad area of agreement.
In this part of my address and in the submissions, I wish to make it plain that what I am doing is describing the allegations made in the earlier proceedings, not inviting your Honour to accept the correctness or otherwise of those allegations.
Mr Elliott SC says that the above is really the end of the matter and the TC2 complaint is an attempt to make further submissions on substantive matters.
During the hearing at least, both counsel appeared to be in “furious agreement” that there was no need for me to make findings regarding the allegations in respect of the earlier proceedings. It does not seem to me that I need to stray beyond that agreed basis. Mr Elliott SC did not ask me to make any positive findings of misconduct by Mr Alamin, and in light of the issues in the proceedings, there is no need for me to do so.
TC3: Mr Elliott SC submitted that a witness does not need “to have put to him what his own lawyer’s letters said in correspondence” [357] . There is no need for me to address whether that is universally true. Relevantly, in this case, I do not think that there is any relevant failure to cross examine on the terms of the 17 November 2022 offer.
TC4: Mr Castle SC submitted that Mr Alamin’s case is that the payment of the Settlement Amount was linked to the settlement of 11 & 82 Woolgen – not because this was discussed between the parties but because “this was the understanding on which the Settlement Deed was framed”. He says that it was open to Mr Elliott SC to cross-examine Mr Alamin on this understanding and “[h]aving failed to do so, Islam cannot seek any inference adverse to Alamin’s understanding, including the suggestion that Islam had refused to link the payments to settlement of the properties”. Mr Elliott SC says it was unnecessary to do so and, in any event, Mr Alamin was cross-examined quite directly about his understanding concerning how payment of the Settlement Deed amounts would be funded.
It seems to me that TC4 on any view does not assist Mr Alamin’s case. He has the onus of establishing, by clear and convincing proof, the case for rectification. Mr Elliott SC did not need to establish by inference or otherwise that Mr Alamin never sought to make the connection. It was enough for him to submit that no common intention had been established.
TC5: Mr Castle SC says that Mr Alamin was not cross-examined to the effect that he wished to avoid the spectre of a lengthy cross-examination about his alleged dishonest conduct. Mr Elliott SC says that there is no factual controversy, and that his submission cites “uncontroversial factual reality”. I do not agree with that. However, it seems to me it matters little. Mr Elliott SC did not need to establish that Mr Alamin’s motive the settlement with Mr Islam was to avoid cross examination (or some other reason). He did not ask me to make any finding to that effect. I do not propose to make any such finding. In light of that, TC5 does not assist either side.
TC6: Mr Castle SC objected to aspects of Mr Elliott SC submissions referencing conduct of Mr Alamin that involve misrepresentation or wrongdoing. Mr Elliott SC did not ask me to make any positive findings of misconduct by Mr Alamin, and in light of the issues in the proceedings, there is no need for me to do so.
TC7: Mr Castle SC’s complaint about Mr Elliott SC’s submissions in respect of failure to call his lawyers and the probabilities of what they would have advised him in a sense is beside the point. Mr Elliott SC did not submit that there was ‘Jones v Dunkel’ [358] issue. I do not propose to speculate about what the lawyers might have said nor regarding the probabilities of what they might have advised Mr Alamin. The point of note of Mr Elliott SC is that there was no evidence of oral communications of the parties’ lawyers and authorised agents regarding the negotiations, thus leaving an absence of direct evidence of outward expression of intention [359] .
TC8: Mr Castle SC took issue with the extent to which Mr Elliott SC pointed to answers given by Mr Alamin in cross-examination regarding what he considered would be the sources of funding for the Settlement Amount instalments. He submitted that
Logically, Alamin may have said that he was focused on the pre-sale moneys to fund the first instalment, but that he would not have agreed to make the payment unless he was certain that settlement had occurred or would occur – otherwise, for example, he would have had no means to repay the customer later (see eg. Alamin’s answer at T122.36-.44). He may have said that the sequence that applied in relation to the MH Group (where the two partners had an incentive to cooperate) was not the same sequence he was prepared to adopt for the purposes of the Settlement Deed (where the two partners were operating independently)
Q. What you were each trying to do when you agreed to the settlement terms that you did, was to work out how the amount of presale moneys you would get in for 11 Woolgen Park and 82 Woolgen Park; correct?
A. Yes, presale money.
Q. And when you would have enough presale money to make payments to Mr Islam; correct?
A. Yes.
Q. You were considering that as one possible source of funding to pay Mr Islam, weren’t you?
A. The main possible source.
Q. But there were others?
A. Normally the presale lots.
Q. But you said, “mainly”, so there were others. What were the others you had in mind?
A. At that time, there was no others.
Q. You just said, “mainly”. What were the other sources of funding that you had in mind?
A. The other source - I did not have anything in my mind, but it could be from my MH Affordable Homes company, whatever the money I can get my allotted amount.
Q. Because there was all sorts of presale activity happening in relation to those other properties as well; wasn’t there?
A. No, the presale money, normally we don’t take.
Q. What do you mean you don’t take?
A. Until the property is purchased.
Q. When presale money would come in, you would spend it on whatever 45 needed attending to, whether it was on the project for which the money was received or some other project; correct?
A. That’s correct.
Q. So one source of funding to pay Mr Islam was moneys you expected to receive in the future in relation to the MH Affordable group enterprises; correct?
A. In that time, the--
Q. Correct?
A. --only source was - at the time, the main source or only source was from the 11 and 82 Woolgen Park, the money, because the MH Affordable Homes is normally joint bank account, joint signatory. We - I mean, except our salary, we don’t get that much money from there.
Mr Elliott SC submitted that this was yet another attempt by Mr Castle SC to make submissions on substantive matters and should be ignored.
Mr Elliott SC’s initial submission at DS3 [53(a)] regarding presales was in respect of the first instalment payment. I considered Mr Alamin’s evidence on that issue (monies for the first payment) to be clear, as submitted by Mr Elliott SC. I do not accept that the evidence bears out Mr Castle SC’s contention that Mr Alamin would not have agreed to make the first instalment payment unless it was certain that settlement would occur. In any event, even assuming the Mr Castle SC’s submission was correct, it falls a long way short of demonstrating that Mr Islam perceived that “fact” or understanding as part of a gestalt and further agreed that the Settlement Deed and its terms should be consummated on that basis.
TC9: Concerning sources of funding, Mr Castle SC referenced the submissions of Mr Elliott SC, namely as to what Mr Islam says that Mr Alamin told him about sources of funding (DS3 [59]) and whether it was true or not (DS3 [60]). I accept, as Mr Elliott SC submitted, that it is not necessary for him to have put to Mr Alamin a matter about evidence Mr Islam gave (particular in circumstances where he was cross examined after Mr Alamin). It was not necessary for Mr Elliott SC to establish or prove whether Mr Alamin was correct or not in what Mr Islam says he was told by Mr Alamin, at least on this issue. I accept Mr Islam’s evidence that he was either told by Mr Alamin or believed that Mr Alamin had a variety of sources of funds.
TC10: On this particular theme, counsel were at odds even as to whether Mr Elliott SC had even made such submission.
Mr Castle SC’s referenced a submission that “Mr Alamin simply decides to cause his companies not to proceed with the acquisitions and to pursue other opportunities instead.” That was purportedly an extract out of DS3 [60]. Mr Elliott SC rightly responded that he had made no such submission in DS3 [60]. Indeed no such precise submission appears in Mr Elliott SC’s oral submissions.
Nonetheless, Mr Elliott SC did in addressing the utility of the proposed rectification make the observation that the effect of the rectification would leave the payment date for the Settlement Amount instalments uncertain and unspecified [361] . Further, he made the point that the purported rectified term would be confusing and convoluted “if one company acquires land and the other does not, or what is to happen if Mr Alamin simply decides to cause his companies not to proceed with the acquisitions and to pursue other opportunities instead” [362] . In oral submissions he noted that “Mr Alamin could simply avoid the payment by saying, “Well, I just won’t proceed”” [363] .
Mr Castle SC surmised that Mr Alamin could have responded to the matter in a particular way
Logically, for example, he could have said that he had obligations not only to Islam but also to the customers who entered presale agreements, who had their own interest in wanting to obtain title to their land. Whatever might be alleged about Alamin’s attitude to Islam, it could not be alleged, nor was it alleged, that he was prepared to sacrifice the interests of the community members for his own benefit (cf. the cross-examination of Islam at T272.30-273.27).
Even if the matter had been put and Mr Alamin had responded in that particular way, it does not seem to me that it materially detracts from Mr Elliott SC’s point that there was lack of certainty, at the very least, as to when the instalment payments would be made. Nor does it materially detract from Mr Elliott SC’s submissions that uncertainty as to timing of payment of instalments is a factor that counts against there being a so-called accord in any event, and against the claim for rectification and workability of the Settlement Deed.
TC11: Mr Castle SC’s submissions on this theme focused upon Mr Elliott SC’s submissions at DS3 [69]-[72], [109], [111], and [136]-[137]. Ultimately, he contended that
Alamin was not cross-examined at all about the ‘not one cent’ theory, nor about the Angle Vale proceeds, or Alamin’s ability successfully to raise alternative finance. It is obvious that, had any of the questions now put rhetorically in submissions been the subject of cross-examination, Alamin would have had the opportunity to respond that he did not accept the premise of Islam’s case theory, either at the time of the hearing before Slattery J or in relation to Angle Vale. The questions not having been put, these submissions should be rejected in any assessment by the Court of the matters in issue in these proceedings.
Mr Elliott SC contended that Mr Castle SC’s contention misunderstands the rule in Browne v Dunn. On any view of the matter, it is uncontroversial that Mr Alamin did not pay on the instalment dates, the Settlement Amount in part or at all and still has not paid those sums.
Neither counsel (as I understood them) contended that it was necessary for me to make some specific finding as to why that was the case. Even if I were to make such a finding, it is unclear to me how any such finding might assist me in finding whether there was any so-called gestalt and accord for rectification as contended for by Mr Castle SC.
TC12: The contended theme referenced the concluding two sentences of DS3 [124] as follows
If Mr Alamin does not want to do something (whether it be answering a question in the witness box, or paying money, or attending a mediation by 9 December 2024 in compliance with this Court’s order) he just does not do it, regardless of what his obligations are. Those around him are then left to deal with the consequences as best they can.
That submission of Mr Elliott SC was not actually an invitation for me to generally disbelieve Mr Alamin’s evidence. His submission (in DS3 [56]) regarding Mr Alamin’s evidence is that which I have noted earlier, namely “… Mr Alamin’s evidence does not provide a sufficiently reliable basis for the making of an order for rectification…”.
TC13: This contended theme referenced DS3 [118] and states in absolute terms what DS3 [118] had stated in more precise and qualified way as I set out below. In it, Mr Elliott SC addresses the counterfactual, namely what would have been the position had the Settlement Deed not been entered into at all.
Mr Castle SC submitted that evidence of loss and damage had been led and foreshadowed by the renewal of a tender of MFI-9 [364]
This submission ought not be entertained in circumstances where evidence of loss and damage was led – see eg. the Settlement Statement at CB 4/5391- 5392 (Concise Bundle Ex P7, p.867), and opened upon (T25.6-33). There was no cross examination to suggest that the Amin Parties did not suffer loss and damage. If this submission is to be permitted, the plaintiffs renew their tender of MFI 9 in reply, although it may be noted that two of the documents from MFI 9 form part of the Concise Bundle at CB4/1273 (Concise Bundle Ex P7, p.265A); CB4/1435-1436 (Concise Bundle Ex P7, p. 286A). Note also that the intercompany loan on 11 June 2021 is recorded at CB4/1437 (Concise Bundle Ex P7, p.273), which was preserved by the final sentence of clause 15 of the Deed of Settlement.
I accept that Mr Castle SC did seek to lead evidence as to loss and damage. That, I assume obviates a need to consider tender of MFI-9. However, to the extent necessary, I formally decline any tender of MFI-9. In any event, finding that some evidence has been led which may bear upon loss and damage of course does not mean that such evidence as he did lead justifies prior findings that there is some legal obligation in Mr Islam to pay or compensate the plaintiffs for loss and damage nor does it mean that some particular finding regarding loss and damage must be made.
TC14: The final contended theme focused upon DS [125(e)(iii)]. Mr Castle SC contends that Mr Elliott SC was careful (at T137.11-138.45) to ask questions only about past cooperation and Mr Alamin was never asked whether Islam would be a help or a hinderance in the future in terms of completing the projects.
Mr Elliott SC noted that it was put to Mr Alamin as a matter of general proposition, that when it comes to the MH Affordable business and providing the service to the community, he has been able to put aside his differences with Mr Islam (T 137.12-.22). He submitted that the evidence did not demonstrate that Mr Alamin would take a different position going forward, and as such, no further questioning was required. That submission appeared to accept that Mr Alamin would, if necessary, cooperate to do certain things for the purposes of completing projects. I am not quite sure whether Mr Castle SC disputes that.
What is not so straightforward is exactly how it might work. Mr Castle SC cross-examined Mr Islam regarding completion of remaining works in respect of 3 outstanding projects [365] . Part of that cross-examination was seemingly premised on the basis that it would be better for Mr Alamin to do all the work and be in full control rather than have a liquidator appointed. Mr Islam did not agree with that proposition [366] .
He then later returned to the topic and the evidence included [367]
Q. Yesterday, I asked you this question at 175, line 46. Perhaps, I’ll just 5 remind you what we were talking about. We were talking about the three remaining properties that need to be completed in terms of development. Do you remember I asked you some questions about that yesterday?
A. Yes.
Q. There was 404 Fourth Avenue, 1015-110 Gurner Avenue, and 39 Dixon Road. Do you remember I asked you some questions about that?
A. Yes.
Q. At line 46, I put this question to you:
“Q. There’s no reason why Mr Alamin couldn’t do it and get these projects finalised, is there?
A. Trust issue.”
Do you remember giving that evidence?
A. Yes.
Q. Was that evidence true?
A. Yes.
Q. Then at line 50, I then asked you this question:
“Q. The trust issue is the reason why this relationship between you and Mr Alamin can’t work; correct?
A. We still working last five years on finishing our project.”
Do you remember giving that evidence?
A. Yes.
Q. You were suggesting that the two of you could both work together to finish off these projects. That’s what you were suggesting by that last answer?
A. We finishing the project, working together, yeah.
Q. So, you trust him enough to be able to work the projects together, but you say you couldn’t do it if he was doing it alone because of trust. Is that what you’re saying?
A. That’s all existing project. And we both responsible for doing that projects.
Q. You say, do you, that there’s sufficient trust between you to enable those projects to be done together?
A. Sorry, say again.
Q. You say that there’s a sufficient level of trust between you that enables you to do those three projects together, you and Mr Alamin?
A. We working together, yeah.
Q. No, I’m putting a different question.
A. Yep.
…
…
Q. I’m asking you about the completion of the projects from today onwards, the three projects.
A. Yes.
Q. I’m asking you whether you believe there is sufficient trust between you and Mr Alamin to be able to do those projects together.
A. We have to finish this project, it’s still there is no trust. But I’m more caution now.
Q. You say there’s no trust, but you can work together to do it?
A. Yes.
Q. I suggest to you that your answers on this topic are simply inconsistent, ie the topic of trust. What do you say about that?
A. Not agree.
Q. I want to suggest to you that you are the person who can’t be trusted in this relationship rather than Mr Alamin. What do you say about that?
A. Not agree.
Based on the above, it seems to me that were it necessary to make a finding regarding cooperation in the future, both Mr Alamin and Mr Islam would at least attempt to work together. I accept, as Mr Islam says, that he would be a little cautious as he has a “trust issue” with Mr Alamin. Further, it does not seem to me that Mr Islam accepted that he would simply let Mr Alamin have full control without any involvement by Mr Islam.
However, how smoothly any such cooperative arrangement would work is a different matter. Even accepting the evidence of both gentlemen, their history of dispute over the last 5 years hardly augurs well or provides the court with any great confidence that they could effectively work together without further material or significant dispute.
On 2 September 2015, MH Affordable was incorporated, with both parties as directors with 51% of the shares held by Mr Alamin and 49% by Mr Islam [368] .
Mr Alamin and Mr Islam then conducted business in accordance with the Islamic Shariah Law, which prohibits the charging of interest [369] .
Subsequently, Mr Islam and Mr Amin incorporated a number of companies of which they were directors to develop various projects [370] .
In the context of the first project (Fourth Avenue Project) Mr Islam accepted that he considered Mr Alamin to be his partner in the project [371] .
Initially Mr Islam resisted the notion that Mr Alamin was responsible for legal matters for the MH Group. He indicated that they both discussed matters though Mr Alamin “was the communicator by email” [372] . Later, Mr Islam accepted that, so far as the division of responsibility occurred between them, he had a primary focus on sales and marketing, and Mr Alamin had a primary focus on legal matters [373] . I did not understand “primary focus” to mean that there was necessarily a total exclusion from the other roles (e.g. Mr Islam attended as a director to signing documents). Mr Castle SC contended that Mr Islam’s role in the business was essentially sales and marketing and that Mr Alamin “was really the person managing it day-to-day and on top of all aspects” [374] .
It appeared that both gentlemen liaised with Mr Dewan (McCabes) in relation to legal matters for the joint-venture prior to July 2021 [375] .
Mr Castle SC contended that Mr Islam engaged in Forex trading on behalf of himself and others whilst doing activities in relation to the MH Group business, which resulted in a loss [376] . Mr Islam’s affidavit indicated he invested his own funds, and some of his relatives and friends have invested their funds, on his recommendation, into a foreign exchange trading platform. He said he did not recall any issues ever being raised by Mr Alamin as to his involvement in this until around mid-2021 [377] . He (personally) made a loss [378] . I do not accept Mr Castle SC’s contention, if he intended by it, that Mr Islam was engaging a significant amount of time that ought to have been devoted to the business. Mr Islam’s evidence was that the investing did not take a long time and there was really no precision about when he was doing it.
Typically, the business is described as one which purchases blocks of acreages of land which are mostly sold prior to the commencement of the subdivision of the land, with the proceeds being used to fund the development and to purchase other such properties [379] . This model is used to provide a purchase option to members of the Islamic community in accordance with Islamic Shariah Law [380] . The agreements with the customers are typically “Ijarah Lease” agreements where the customer first pays a deposit, then monthly instalments towards the land price once the development of the property commences, until the balance is paid [381] .
On or about 5 June 2017, MH Kelly entered into a contract to purchase a property at the Boyd Street property for the sum of $12,500,000. It paid $3.875 million, including a deposit of $1.25 million, to the vendors of the property. In late December 2018, the vendors terminated the contract for the Boyd Street property due to the delay in payment of an instalment of the purchase price and forfeited the entire sum of $3.875 million already paid by MH Kelly. Following the termination, MH Kelly commenced proceedings in this Court against the vendors, seeking relief against forfeiture of the sum of $3.875 million less 10% deposit (MH Kelly Proceedings). Simultaneous with the proceedings, MH Kelly sought to negotiate to re-purchase the Boyd Street property from the vendors. During the period between entry into the contract in June 2017 and its termination in December 2018, MH Kelly presold approximately 30 proposed subdivision lots in respect of the Boyd Street property and received payments in excess of $7 million on account of deposits and instalment payments for the presold lots [382] .
Mr Alamin sent to Mr Islam a number of text messages expressing his concerns about Mr Islam’s lack of input in comparison to that of Mr Alamin. Such messages are dated 8 February 2019; 7 May 2019; 8 August 2020; 21 September 2020; and 15 November 2020 [383] .
Mr Alamin’s pleading in these proceedings asserted (and Mr Castle SC contended [384] ) that at least since mid-2020 the relationship between the gentlemen had broken down and that the mutual trust and confidence essentially since then had not existed. Mr Islam’s defence admitted that Mr Alamin had acted in a way inconsistent with the existence of any relationship of trust and confidence but denied the fact of breakdown [385] .
Mr Alamin’s evidence raised complaints regarding Mr Islam undertaking tasks from mid-2020 to June 2021 [386] . The cross examination of Mr Islam by Mr Castle SC regarding a fractured relationship actually focused upon emails in 2023 [387] . Certainly in July 2021 when Mr Alamin acted to remove Mr Islam as a director of MH Affordable, I accept that there was some breakdown which was significant no later than July 2021 and that it likely emerged or developed from about mid-2020.
On 5 March 2021, Mr Islam messaged Mr Alamin as to strategy in respect of the Boyd Street property. On 6 March 2021, Mr Alamin asked him about his thoughts and shortly thereafter Mr Islam messaged him suggesting they start another project of three to five acres to minimise their loss for MH Kelly [388] .
On 6 March 2021, Mr Alamin caused Signature Homes to enter into the 11 Woolgen Contract, with a completion date of within 365 days of the contract date and a deposit amount of $463,700 [389] .
On or about 19 March 2021, a 5% deposit (in the sum of $231,850) was paid [390] .
On or about 19 April 2021, Mr Islam had a conversation with Mr Alamin and was told about the possibility of purchasing 11 Woolgen from Rajiv Mamu as a solution to their loss of the Boyd Street property [391] .
On 26 April 2021, the MH Group launched a marketing campaign for the sale of the 11 Woolgen lots [392] . Mr Castle SC contends that Mr Islam was involved in the marketing of 11 Woolgen and knew that there had been a very significant number of presales and that substantial instalment amounts were available in respect of it [393] . I accept that Mr Islam was aware that the MH Group was involved. However, Mr Islam’s response in cross-examination regarding knowledge of presales was to the effect that as at December 2021 he assumed there was a very significant number of presales and the very substantial instalment amounts were available in respect of it [394] . However, he denied that it was on that assumption that he was prepared to give Mr Alamin time to pay $3.5 million in the 19 November 2022 offer [395] .
From 19 May 2021, MH Woolgen started to receive deposits for the purchase of lots at 11 Woolgen [396] .
One of the issues in the 2021 proceedings was that Mr Islam believed that Mr Alamin had been hiding information from him about 11 Woolgen. Mr Islam says initially, he was not aware that MA Signature had purchased 11 Woolgen and that Mr Alamin was involved in the company, but found this out later after searching the records of MH Group [397] . Mr Islam says he was perplexed about why Mr Alamin was trying to sell the property to MH Group for over $7 million when it was purchased for $4.6 million [398] . However, Mr Alamin believed that this was a fair ‘market price’ for the property [399] .
On 11 June 2021, Mr Islam claims that he had a conversation with Mr Alamin, who did not tell him the truth about having an interest in Signature Homes [400] . On this day, both Mr Islam and Mr Alamin signed the contract of sale to purchase 11 Woolgen for $7 million on behalf of MH Woolgen, in circumstances where Mr Islam was informed that it was the last day to pay the 5% deposit, and where he claims that he feared for the state of the MH Group [401] . Further, the balance of the 5% deposit of $231,850 on the 11 Woolgen Contract was paid [402] .
Under the June Sale Agreement, the ‘Purchase Price’ was $7 million (comprising a ‘Deposit’ ($700,000), “1st Instalment” ($4,173,300) and a ‘2nd Instalment’ ($2,126,700)) [403] .
Mr Castle SC contended that the June Sale Agreement would have the effect of transferring the 11 Woolgen Property to MH Woolgen in 18 months’ time [404] .
Mr Castle SC contended that Signature Homes would engage in development activities known as the “Land Costs” including, if possible, obtaining a development consent for the 11 Woolgen Property, and would, in effect earn $2-3 million in revenue for the “first part of the profit” and thereafter, MH Woolgen would be responsible for and earn profit from the second stage of profit known as “Development Costs” by doing the construction and outworks required for the 11 Woolgen Property [405] . The reference does not make that out. Mr Elliott SC objected that it is no part of this case for Mr Alamin to seek to be defending the validity or otherwise of this previously impugned transaction [406] .
By reason of use of the initials “MA” (for Mohammad Alamin), Mr Castle SC contended that Mr Islam knew or ought to have known that “MA Signature Homes” was affiliated with Mr Alamin [407] . He says he was not aware at the time. I accept that he was not actually aware.
On 25 June 2021, Mr Alamin sent a message to Mr Islam complaining about his lack of contribution to the business, and proposed that he wanted to work on partnership 65% in his favour and 35% in Mr Islam’s favour [408] , with the consequence of not doing so resulting in him charging $1,000/hour + GST for every hour worked over the hours performed by Mr Islam. Mr Islam did not respond [409] . Mr Islam received another message along the same premise, stating that Mr Islam would no longer receive a salary. Mr Islam again did not respond [410] .
Mr Castle SC submitted that by 30 June 2021, the closing balance for the MH Woolgen Westpac account was $674,341.63 [411] .
Further, he contended that the total amount of instalments expected for the presale was and would be substantial, and that Mr Islam knew that there were significant sums of money that would flow through once the 11 Woolgen transaction was settled [412] . I accept that as at December 2021 Mr Islam had looked at the prepayment amounts. However, he says that he believes that from about July 2021 clients were directed by Mr Alamin to make payments to Mr Alamin’s companies instead of to the MH Group [413] . I accept that was his belief.
In cross-examination, Mr Islam accepted that if 11 Woolgen was not settled, the presale monies would have to be returned to investors [414] .
After issues with financing for the Boyd Street property held by MH Kelly, the property settled on 14 July 2021, with the shortfall financed by Pacific 8 [415] .
Mr Castle SC contended that the June Sale Agreement did not ultimately proceed because Mr Islam changed his mind on the $7 million purchase price and the 10% deposit of $700,000 was not paid by MH Woolgen [416] . The second reference cited for this proposition is a text from Mr Alamin to Mr Islam on 15 July 2021.
On 15 July 2021, Mr Alamin messaged Mr Islam [417]
Arif bhai
I want to sit and have an open discussion about the matter for company current structure and resolve the matter with a peaceful solution.
I will be holding the operation for Woolgen park project for the time being.
Our Accountants needs to be present as well for the matter to give us proper advise and solution.
Please let me know your availability
[and later]
Just like to inform you that
MA Signatures decided not to sell or transfer the contract of the property (11 Woolgen park) because 10% (700k) deposit wasn’t paid on time and sale agreement has not been exchanged due to unpaid of full deposit amount.
$350,000 paid deposit will be refunded back accordingly.
Whilst I accept the June Sale Agreement did not ultimately proceed, I do not accept, if it be the contention, that the sole basis for it was due to a “change of mind” or entirely discrete from actions of Mr Alamin.
On or about 22 July 2021, Mr Alamin purportedly signed a director’s resolution to remove Mr Islam as a director [418] , which Mr Islam became aware of on 24 July 2021 when it was forwarded to him directly and to the MH Group WhatsApp chat [419] . Mr Islam responded to the WhatsApp group chat stating that the change was not recorded on ASIC and was invalid, leading to Mr Alamin and three other members leaving the group chat [420] . Thereafter, Mr Islam was unable to access the office premises and his IT access had been revoked [421] .
On 24 July 2021, Mr Alamin informed Mr Islam that Signature Homes declined to sell 11 Woolgen to MH Woolgen due to a further 5% deposit not being paid [422] .
In or around June and July 2021, Mr Islam believes that Mr Alamin directed clients make certain payments relating to their purchase of lots in 11 Woolgen to the account of Signature Homes rather than MH Affordable [423] . Mr Islam was of the belief that Mr Alamin used funds from MH Group to purchase 11 Woolgen through Signature Homes [424] . However, Mr Alamin contends that he did not do so and ‘validly’ used his own funds [425] .
On or around 30 August 2022 according to Mr Alamin, MH Kelly obtained financing from Centuria Bass for $15,606,113 [426] .
On 11 October 2021, Mr Alamin registered Amin Murooj [427] .
On 12 November 2021, Mr Alamin signed a Put and Call Option Deed for 82 Woolgen, on behalf of Amin Murooj. The Call Option Fee (a time is of the essence clause) was a sum of $1.5 million payable over a period of 18 months, with $375,000 payable on the date of the agreement, $750,000 within 6 months, and $375,000 within 18 months [428] .
Around this time, in November 2021, Mr Islam found out, through a conversation with Anthony Bucca (an LJ Hooker agent) that Mr Alamin had purchased 82 Woolgen [429] .
Mr Alamin claims that the initial amount of $375,000 was paid using proceeds from the pre-sale of 11 Woolgen lots, but that this was because 11 Woolgen was not, in the end, sold to MH Woolgen and Mr Islam would not transfer collected pre-sale funds back to Amin Murooj [430] .
On 13 December 2021, Mr Islam filed an oppression application [431] .
On 30 June 2022, an Expected Incomes and Expenses spreadsheet for 11 Woolgen showed an expected profit of $3,950,090.36 [432] . An Expected Incomes and Expenses spreadsheet for 82 Woolgen showed a negative amount of $900,731.24 as expected profits [433] . These spreadsheets were explained by Mr Alamin in cross-examination to be a calculation of how much money could be made from the project at the end of the day [434] .
Since around July 2022, according to Mr Alamin, Signature Homes had been seeking its own financings from Centuria Bass for a property purchase in Leppington [435] .
On 17 November 2022, two offers (one without prejudice, the other an open offer) were made by Cordoba Legal (at the time, representing Mr Alamin) to McCabes (representing Mr Islam) [436] .
The without prejudice offer [437] proposed payment of $2 million by the Alamin clients ($250,000 within 28 days from a deed and the balance within 12 months from the date of the deed). The letter specified
3. For the avoidance of any doubt, the Offer involves:
3.1. Our Clients retaining the Properties at 11 Woolgen Park Road Leppington NSW and 82 Woolgen Park Road Leppington NSW (the Properties);
3.2. Mr Mohammad Alamin is to remain the sole director of the entity MH Affordable Homes Pty Ltd (ACN 608 006 328) (the Company); and
3.3. The shareholding structure in the Company is to remain as is.
4. The Offer incorporates as 12 months payment term to allow the Properties to settle. Our Client will not be in a position to pay the balance of the Settlement Sum until such time the Properties have settled.
The open offer [438] proposed consenting to part of the relief in the Originating Process (prayer 2 and prayers 6 & 7) subject to amendments. In particular, it indicated that “[f]or the avoidance of doubt the intent and practical effect of this offer is that” 11 Woolgen would be deemed to be held on constructive trust by Signature Homes for the benefit of companies in MH Group [439] .
On 19 November 2022, McCabes made two without prejudice offers [440] .
The first involved various aspects including relevantly [441]
6. The Amin defendants be jointly and severally liable to pay $3,500,000 (settlement sum) to the plaintiff.
7. The settlement sum is to be paid by way of instalments as follows:
a. $1,000,000 on or before 30 November 2022;
b. $1,500,000 on or before 31 March 2023; and
c. $1,000,000 on or before 31 May 2023.
8. In the event there is delay in payment of any of the instalments or breach of any other terms of this settlement by any of the Amin defendants, all of the amounts will become immediately due and payable by the Amin defendants to the plaintiff.
9. The Amin defendants acknowledge and agree to:
a. refrain from encumbering their interest in 11 Woolgen Park Road, Leppington (11 Woolgen) and 82 Woolgen Park Road, Leppington (82 Woolgen) without the prior written consent of the plaintiff; and
b. that the plaintiff will be entitled to lodge a caveat on the title of each of 11 Woolgen and 82 Woolgen after any of them become registered proprietors of these properties.
10. The Amin defendants must not dispose, deal with or part with possession of any interest in 11 Woolgen and 82 Woolgen unless it is in the ordinary course of their ordinary business. For avoidance of doubt, the exercise of any option to purchase 82 Woolgen Park by anyone other than Amin Murooj will constitute an action outside the ordinary course of ordinary business.
11. The Amin defendants acknowledge and agree to grant security interest in registrable form on any or all of their present and after‐acquired property, including shares and real properties including 11 Woolgen and 82 Woolgen, as and when the plaintiff requires so.
12. In the event there is any default by any of the Amin defendants:
a. the plaintiff will be entitled to commence proceedings against the Amin defendants to enforce the terms of this settlement including, but not limited to, the recovery of all unpaid settlement amount and the enforcement of any security interest on any of the properties of the Amin defendants, plus all legal costs and expenses incurred by the plaintiff in enforcing the terms of the settlement on an indemnity basis; and
b. the Amin defendants will not be entitled to raise any defence, set-off or cross claim in relation to those proceedings or any action taken by the plaintiff to enforce the terms of this settlement.
13. Subject to the terms of settlement, the plaintiff and each of the defendants including the Amin defendants to release each other from any and all claims they may have against the other, including in relation to any payments made or received by any or all of them in respect of presale of proposed subdivision lots of 11 Woolgen and 82 Woolgen.
The second without prejudice offer [442] inter alia involved the court making various orders including declarations that “Assets” held by various Amin defendants are held on trust for MH Woolgen, the Assets defined to mean the 11 Woolgen Contract, the 82 Woolgen Option, presale contracts in respect of either property, and the funds in the bank accounts of the Amin defendants.
Mr Islam described them in the following terms [443]
The key difference in these two offers was that, one of them required the clients of Cordoba Legal to pay me $3.5 million by instalments and they retain their interest in 11 and 82 Woolgen, and the other offer did not require any such payment but provided that all interests in 11 and 82 Woolgen be held on trust for the benefit of one of the MH Group companies. Both offers lapsed on Monday, 21 November 2022 at 9:30am.
It is uncontentious that the offers lapsed.
Mr Castle SC submitted as one of the contended factual findings that Mr Islam knew that Mr Alamin required time to pay the $3.5 million in the 19 November 2021 Offer to enable settlement of 11 Woolgen to proceed and the purchase of 82 Woolgen, and that Mr Islam knew the 17 November 2022 offer was subject to ownership of 11 Woolgen and 82 Woolgen [444] .
The second part of that submission is straightforward enough. I accept Mr Islam knew the terms of the offers. However, the first part of the submission is very contentious. The transcript reference does not bear it out. It is as follows
Q. If you go back to tab 2 of the bundle in front of you, go to paragraph 227 of 10 that affidavit of 13 December 2021.
A. 27?
Q. 227. At least as at December 2021, 11 months before this particular discussion, you knew there were a very significant number of presales, and 15 that very substantial instalment amounts were available in respect of 11 Woolgen; that’s so, isn’t it?
A. That was my assumption.
Q. It was on that assumption that you were prepared to give him time to pay 20 the 3.5 million in the offer of 19 November; correct?
A. Not agree.
The fact that an offer is made on particular terms (such as time to pay) does not necessarily mean that the offeror “knows” that the offeree requires such time for a particular reason or purpose. I do not accept nor do I make any finding in unqualified terms that “Mr Islam knew that Mr Alamin required time to pay the $3.5 million in the 19 November 2021 Offer to enable settlement on 11 Woolgen to proceed and the purchase of 82 Woolgen”.
Further, Mr Castle SC contended that “[Mr] Islam wanted to be paid in instalments because he did not want to wait until the 11 Woolgen Property and 82 Woolgen Property had settled. He wanted to capture the presale income on a progressive basis” [445] . It is correct that the ultimate offer in the proceedings provide for payment of instalments. However, the transcript does not bear out the proposition that Mr Islam “wanted to capture the presale income on a progressive basis”.
On 21 November 2022, Parker J commenced hearing the 2021 proceedings [446] . The case was opened and there was discussion about ultimate aims and outcomes of the litigation. His Honour raised the prospect of appointment of a liquidator to wind up the companies [447] or the appointment of a receiver [448] .
During the opening, Mr Elliott SC made it clear that there were real issues as to whether the assets of MH Affordable included 11 & 82 Woolgen [449] and the way in which monies had been used to progress acquisition of those properties [450] , and asserted that Mr Alamin had failed to give Mr Islam various presale contracts and bank account statements [451] . The particular contention was that the funds for the option fee had been sourced from the MH Group and the presale of proposed lots in 82 Woolgen [452] . Of some significance is that his Honour enquired about how the balance of the funds to purchase 11 Woolgen would be sourced and Mr Elliott SC indicated that presale amounts collected from purchasers would yield enough to not only complete the transaction but make a substantial profit [453] . Mr Philips briefly responded and indicated that he would seek instructions from Mr Alamin, it being said to be helpful if he could do that prior to the case being progressed as it was contemplated that Mr Alamin would be cross-examined first on the opening day of the hearing on the basis that he might not be available later in the week [454] .
The hearing was adjourned until 11:30am. Negotiations occurred between the parties. Following a “short” adjournment at about 11:30am Mr Philips announced to the court a “joint report” that there had been “substantial and fruitful negotiations in relation to potential resolution of the whole matter” and sought further time, which was given to them by his Honour [455] .
It appears the parties and their legal representatives spent the balance of the morning and much of the afternoon negotiating a form of “Heads of Agreement”. Part of those negotiations appear to have occurred whilst the parties were in two separate meeting rooms in the Law Courts building [456] .
As noted above, Mr Alamin was legally represented by Mr S Philips, Mr N Condylis of counsel and their solicitor, Mr Elkheir. He observed that Mr Elkheir also had a number of people from his office attend at various points in time to assist him. It appears that included Kasem Elkheir, a paralegal [457] . Mr Islam was assisted by Mr Elliott SC, Ms N Dewan of counsel and his solicitors from McCabes, Mr Dewan and Mr Wade. Mr Islam states that his brother Rashedul Islam and friends such as Kamrul Islam attended Court to provide him moral support but says that they were not involved in negotiating any settlement with Mr Alamin and he did not seek any advice or suggestion from them in this regard [458] .
390 At the time, following the comments made by Parker J, I was concerned that if MH Group was placed into liquidation, the clients of MH Group would not get the land they had paid to purchase from MH Group as our purchasing structure provides for interest-free shariah compliant purchasing which was unlikely to be facilitated by a liquidator, and are long term projects I would have liked to see to completion.
391 I make comments below regarding certain facts which I asked my instructing solicitors to pass on to Hamidul, noting that this relay of information was separate from my instructions for legal advice and the conduct of the litigation in respect of which I maintain my claim of privilege. To the extent that this might be taken to be a waiver of legal privilege, I withdraw those paragraphs and do not rely on them.
392 I always intended that any offer made to Hamidul had to be made on the basis of the price lists, subdivision plan, and financial feasibility of the 11 Woolgen and 82 Woolgen projects. It was the only way I would be able to obtain funds and make any payment to Hamidul to settle the proceedings. This was because my money was tied up in the assets of the MH Group companies (as well as in 11 and 82 Woolgen), and the cash profits I might make from them those businesses would only be realised fully upon completion of each companies’ project/s being when the customers made their final payments for the pre-sold lots, which was still some years away. In the meantime though, I was aware that I could use cash from the pre-sale of lots in 11 and 82 Woolgen to give Hamidul an effective half share of the profits that were expected to have been made before the time when they were in fact realised. It was on this basis that only that I was able to make cash offers to Hamidul to settle the Islam Proceedings. I was consistent in communicating this intention to my solicitors in and around the time when settlement discussions were ongoing. The alternative offer type was the transfer of the companies into the MH Group which would remove my need to obtain cash immediately but would give Hamidul an effective 50% share of 11 and 82 Woolgen.
393 I brought copies of the documents I prepared, setting out the financial feasibility of the payment of the cash requested by Hamidul based on the expected profit and expenses for 11 Woolgen and 82 Woolgen, with me to the settlement discussions. A copy of that Price List, subdivision Plan, and Financial Feasbility for each of 11 Woolgen and 82 Woolgen are at pages 1641 - 1646 (Feasibility Documents).
394 The Feasibility Documents are created for every project in the usual course of our business. The Price List and Subdivision plan are ordinarily provided to the clients, but the Financial Feasibility is ordinarily an internal company document.
395 I asked Kazem to provide a copy of the financial feasibility to Foez and Hamidul so that they could see the actual estimated profit amount for 11 Woolgen and 82 Woolgen. I saw Kazem take copies of the Feasibility Document with him when he went outside the meeting room and I believe that he took them and provided them to Hamidul’s legal team because when he came back, he no longer had the Feasibility Documents with him.
396 Following this, I instructed Kazem and Mr Phillips to make an initial offer to Hamidul for the settlement of the whole of the dispute, in which I would get to keep both 11 and 82 Woolgen and I would pay him an amount of $2.1 million, which was based on the profits expected and cash flows set out in the Feasibility Documents.
397 Kazem and Mr Phillips told me that Hamidul had rejected this offer and that Hamidul’s legal team had told them that he was maintained his offer of $3.5 million cash, payable within 6 months.
398 I did not understand why Hamidul insisted on the figure of $3.5 million or what it was based on. I was told by Mr Phillips or Kazem that Hamidul rejected the expected financial returns to 11 and 82 Woolgen and feasibility assessment I outlined in the Feasibility Document, though no evidence or reason was ever given by him for that rejection.
399 I instructed Kazem and Mr Phillips to make an offer of $2.5 million, paid in instalments over 24 months to account for my expected cash flows arising from the sale of pre-sold lots, as set out in the Feasibility Document. I proposed the following timetable:
a. $250,000 in 3 months;
b. $250,000 in a further 3 months;
c. $1,000,000 in a further 6 months; and
d. $1,000,000 in a further 12 months.
This timetable was proposed on the basis of 11 Woolgen settling on 15 December 2022 as set out at paragraph 309 above.
400 Mr Phillips left the meeting room and I believe he conveyed the offer set out a paragraph 399 above to Mr Elliot based on my instructions that he do so and the conversation I had with him when he returned to the room, based on the paragraph immediately below.
401 When Mr Phillips returned, he told me words to the effect that Hamidul had rejected the offer I made, set out at paragraph 399 above.
402 Mr Phillips also told me words to the effect that Hamidul had made another offer of $3.5 million, which amount included Hamidul’s legal costs, but which allowed for a 12-month period for payment.
403 I told Mr Phillips and Kazem to convey to Hamidul that, based on my calculations, the 11 Woolgen and 82 Woolgen projects would not make enough profit within a 12-month period to pay $3.5m. If I had the money, I would have already paid Hamidul so that I could move on and stop incurring legal fees - it was not my intention to avoid paying him out, the issue was the availability of cash to meet his demand.
404 I instructed Mr Phillips and Kazem to convey a revised offer to Hamidul of $3 million. At this stage, we were just negotiating the payment figure.
405 When Mr Phillips returned, he told me words to the effect that Hamidul had made a counteroffer of $3.25 million with a 12-month period for payment.
406 I again instructed Kazem and Mr Phillips to convey to Hamidul that 12 months was not enough time to make payment as I would need to settle the purchase of 11 Woolgen and 82 Woolgen first before I could pay Hamidul.
407 Though I do not recall the exact date or time, I understand, from comments made by Hamidul outside the Lakemba - Darul Ulum Sydney Mosque, in the carpark inside my car, that he “believes the profit of 11 Woolgen and 82 Woolgen would make profit of at least $8 million”, that Hamidul believes $3.25 million represents close to a half share in profits for the development of 11 Woolgen and 82 Woolgen. I do not agree with this figure or expected profit.
408 I again instructed Kazem and Mr Phillips to convey to Hamidul a counter-offer of $3.25 million with a 15-month payment timeframe on the basis that the 11 Woolgen Park project was scheduled to settle on 15 December 2022, being approximately 1 month away. That would allow sufficient time for funds to be generated from the pre-sale lots to pay Hamidul the initial instalment of $350,000 by 31 December 2023.
409 I believe Mr Phillips conveyed the offer in paragraph 408 to Mr Elliot because I instructed him to make the offer and then Mr Phillips left the room and appeared to be going to speak with Hamidul’s legal team. When Mr Phillips returned, he said words to the effect that the offer had been made, outlined at paragraph 408 above, had been accepted by Hamidul.
410 My legal team and Hamidul’s then continued negotiations in relation to the terms of Hamidul’s directorship and shareholding in the MH Group companies. I was told by Mr Phillips that Mr Elliot had conveyed to him Hamidul’s wish to remain as director of the MH Group companies.
411 I did not want to bring Hamidul back into the MH Group. I accept now that I may not have validly removed Hamidul, but I removed Hamidul as Director as a result of his stealing company information from my computer and giving it to third parties, his lack of effort or participation in the business, and using his MH Affordable email and office information in his Forex Business and taking money from third parties as set out at paragraph 269. Though I removed him as a Director on ASIC, I continued to pay his salary. I did [not] [460] want Hamidul back as a director as he does not do any work, delays matters when decisions need to be made waiting for his signature or consent and did not generally understand the jobs required of the MH Group. I continued paying his salary despite him not doing any work and for this reason saw him being a director only as a complication.
412 However, ultimately, I agreed to reinstate Hamidul as a director as part of the settlement, though in this capacity he has sought to use his powers within the MH Group to damage the companies, delay and disrupt the projects they were undertaking and otherwise frustrate the businesses. I expand on this in greater detail below at paragraphs 523 to 545.
413 Mr Phillips also conveyed to me words to the effect that Hamidul wanted 2 shares issued to him in MH Affordable so that our shareholding was equal. Initially, I did not agree to this as an equal shareholding would result in a deadlock situation for the MH Group. My initial response, which I asked Mr Phillips to convey to Hamidul’s legal team, was that I would reinstate Hamidul as a director but I would not agree to issue 2 further shares to Hamidul. I believe that Mr Phillips conveyed this offer to Hamidul because I told him my offer and I saw Mr Phillips leave the room, at which point I believe that he went and spoke to Mr Elliot.
414 When Mr Phillips returned, he said words to the effect that my offer, referred to in paragraph 413 above, had been rejected and that Hamidul was again threatening liquidation of the MH Group if I did not agree to give him two more shares to make the shareholding equal.
415 At that time, I did not believe liquidation was the right thing to do for the MH Group or the clients of the MH Group. In those circumstances, I told Mr Phillips to convey my agreement to transfer the 2 shares in the MH Affordable company to Hamidul.
416 I recall that Kazem and Mr Phillips then left the room to discuss the drafting of a deed with Mr Elliot and Foez. By the time Kazem and Mr Phillips returned, it was approximately 5pm. I do not know what conversation occurred between Kazem and Mr Phillips and Mr Elliot and Foez but I was told by either Mr Phillips or Kazem that Foez would be preparing a settlement deed. I had a conversation with Kazem to the following effect:
K: Mohammad, Foez will prepare a draft settlement deed. He proposed we go to his office and sign the deed tonight because it was already 5pm and the court was closing for the day. There is no access to the computers and printers here. Either we go to his office and sign the deed, or you can wait in my office, and when the deed is ready, Foez will call us to go to his office to sign the deed.
M: No, I do not want to go to Foez’s office. Let’s go to your office, or even we can go to my office. And why can’t we do it tomorrow then?
K: Foez told me they want to execute the deed tonight in case you change your mind in the morning. Ok, let’s go to my office and wait for Foez to send us the draft deed. When I receive the draft deed, I will review it and ask for any amendments if needed and send it to Mr Phillips.
417 I went to Kazem’s office and waited. …
By early evening, a draft “Heads of Agreement” [462] (handwritten on McCabes file note paper) had been prepared and contained 17 points, 16 of which appear to have been in the handwriting of one of the legal representatives (unidentified) with the final 17th point mostly in other handwriting but with the concluding few lines seemingly in the same handwriting as the 16 other points.
Mr Islam states that that document was taken by Mr Alamin’s legal representatives and later, at 6.43pm, Cordoba Legal emailed it to McCabes [463] .
Mr Castle SC contended that the Heads of Agreement do not include an exception for financing, had a settlement sum of $3.25 million, had payment in arrangements by way of instalments, included a provision that each party would bear their own costs in relation to the 2021 proceedings, and did not include the ability to obtain finance to complete the purchase of 11 Woolgen [464] . That much can be accepted.
Further, he contended that:
the Heads of Agreement instalments were less in amount than the 19 November 2021 Offer and provided a longer payment period, as they took into consideration the need to settle 11 Woolgen to enable access to pre-sale monies from the sale of lots in the 11 Woolgen [465] ; and
calculation of the Heads of Agreement instalments were made on the basis of how much money could be made available from 11 Woolgen, having regard to purchasing the property and accessing the pre-sale money [466] ; and
the proceeds for the Settlement Amount of $3.25 million could only have come from 11 Woolgen [467] .
Certainly, the first two instalment amounts were less than the 19 November 2022 offer and all three payment dates were broadly speaking more distant than the 19 November 2022 Offer. However, the proposition that “they took into consideration the need to settle 11 Woolgen to enable access to pre-sale monies from the sale of lots in 11 Woolgen” was not agreed to by Mr Islam. His evidence is as follows [468]
Q. You see, you had every ability to work out how much he could pay by way of instalments, because you had information, that we’ve been over before, about the presale contracts, the amounts that were being paid by people, and also you knew what lots had been sold; correct?
A. Not completely correct, because I - Mohammad agreed to pay me something, it’s not - has to be like presale, all the money has to come from the presale. He has other business as well. He has a student business - student consultancy business, and overseas he has a big hospital. Even though he send me a text message before the proceeding start that he has lots of friends and family who wants to spend million dollars, who wants to join with his business, with a million, million dollars, so--
Q. Mr--
A. --why it has to be only from the presale?
Q. --Islam, when you said, “Not only”, part of your answer acknowledges, does it not, putting aside all the hospitals and everything else, that one ready source of funds to him would be presale income from 11 Woolgen Park presales; correct?
A. I don’t know.
…
[and [469] ]
Q. And the reason they’re different is because you understood Mr Alamin’s position was that he couldn’t generate presales to make a $1 million payment on 30 November, and that he wanted to have a lesser amount payable by 31 December; what do you say about that?
A. I don’t remember.
Q. He wanted more time to pay to allow the purchase of 11 Woolgen to occur to make up the settlement sum that had been provided for in the letter of 19 November; that’s so, isn’t it?
A. I can’t remember exactly what happened in that day, but part of our agreement is signed in the settlement date, there was two days negotiation, lots of calculation done by both parties, then we both agreed to sign the settlement after two days.
Q. Yes, and the calculations were done on the basis of how much money could be made available from 11 Woolgen, having regard to purchasing the property and accessing presale and instalment money as you understood it; what do you say about that?
A. Not true.
417 I went to Kazem’s office and waited. It was not till around 9pm that Foez sent a draft deed to Kazem. A copy of the email attaching a copy of that deed is at page 1647.
418 Kazem told me words to the effect that he needed to review it, possibly request some amendments, and also send to Mr Phillips to be reviewed and that I should go home for the night because it wouldn’t be finalised today. I then went home. ….
6. Restraint on Dealing
The Amin Parties jointly and severally agree not to transfer, dispose of, encumber or otherwise deal with all or any part of their interest in either or both of 11 Woolgen and 82 Woolgen, or any contract in respect thereof, other than for sale of lots in their respective plans for sub-division for market value, without the prior written consent of Islam (which consent shall not be unreasonably withheld).
7. Charge
The Amin Parties charge their:
(a) present and any and all future interest on or any part of 11 Woolgen and 82 Woolgen, or any contract in respect thereof; and
(b) shares held in any MH Group or Amin Companies, as security for the payments of any amount payable under this Deed for the benefit of Islam and will execute all documents necessary to register or record such charge.
8. Caveat
(a) The Amin Parties acknowledge and agree that Islam may lodge and maintain a caveat over each of the 11 Woolgen and 82 Woolgen as and from the date any of them becomes registered proprietor of the property in question to protect Islam’s interest as chargee.
(b) Islam acknowledges and agrees to temporarily withdraw his caveat, as and when required by the Amin Parties for the purposes of allowing the Amin Parties to refinance or encumber either property in accordance with a use of those properties for a purpose as consented to by Hamidul Islam under clause 6 of this Deed.
Some of the funds for the deposit of the 82 Woolgen were sourced from Signature Homes on account of presale of proposed subdivision lots of the 11 Woolgen. The funds sources from Signature Homes have since been repaid to Signature Homes.
6. Restraint on Dealing
The Amin Parties jointly and severally agree that up until the Settlement Sum has been paid in full, they will not to transfer, dispose of, encumber or otherwise deal with all or any part of their interest in either or both of 11 Woolgen and 82 Woolgen, or any contract in respect thereof, other than for sale of lots in their respective plans for sub-division, and other than finance or encumbrance for the purposes of Completion of the Contract for Sale for 11 Woolgen Park and the Option for 8 Woolgen, without the prior written consent of Islam (which consent shall not be unreasonably withheld).
7. Charge
The Amin Parties charge their shares held in any MH Group or Amin Companies, as security for the payments of any amount payable under this Deed for the benefit of Islam and will execute all documents necessary to register or record such charge.
12. Provision of Information
The Amin Parties will keep Islam informed of any developments in relation to 11 Woolgen and 82 Woolgen, within a reasonable period of time after becoming aware of those developments, including any developments in relation to conveyance of any or both of these properties and financing or attempt to secure financing in respect of these properties.
419 I returned to the Law Courts building on 22 November 2022, being the following day. Both Hamidul and I, together with our legal teams, set ourselves up in meetings rooms at the Court.
420 I recall that there were numerous discussions back and forth throughout the day until around 4pm. I observed Mr Phillips and Kazem going back and forward to discuss the settlement with Mr Elliot and Ms Dewan, and then returning to convey to me what had been said and to seek my instructions.
421 The conversations I recall were to the following effect:
Kazem: They want to put a personal security charge on you.
422 At the time my concerns that a personal security charge would hamper my ability to borrow the money required to settle on the purchase of 11 Woolgen. I was prepared for Hamidul to place a caveat on the land once purchased but, because I had to be guarantor for any financing, I knew that financier would not accept a personal security charge on.
423 I raised this concern with Kazem and Mr Phillips and Mr Phillips said words to the effect:
Mr Phillips: Ok, let me talk to the other party. They can have the caveat but not the personal security charge.
424 Mr Phillips left the room and spoke to Mr Elliot. I believed that my instructions were acted upon and Mr Elliot was informed of these restrictions. Upon his return, our conversation continued to the following effect:
S: Okay, they will put a caveat as well after you settle the land. A caveat clause is there already however they are adding a personal security charge over you until you settle the land.
M: But this will hamper my ability to borrow the finance to settle the properties. The financier will not accept the personal security charge. 11 Woolgen settlement is in December and without the finance, I cannot settle this land.
S: Yes, Mr Elliot agreed to put a clause in the deed to remove the personal security and caveat temporarily to secure finance to settle the land.
K: Foez also mentioned that it is in the best interest of their client that you settle the land first. Any reasonable request to remove the security and caveat will be accepted to grant the finance to acquire 11 Woolgen and 82 Woolgen only.
M: If that is the case, I am ok with that.
K: They also want to include your Amin Homes Mahmiat Logan and APG in the settlement deed.
M: Why is that? These 2 companies are not part of the proceedings. I will not agree to this. In their statement of claims, affidavits or evidence, they never mentioned these 2 companies. They have no claim against them. How can they want to include this at the end of the mediation?
S: Let me go and talk to them.
425 I relied on the Kazem’s communication to me of Mr Elliot’s statement that a clause would be added into the Deed that would allow the PPSR charge to be lifted temporarily to obtain finance. I would not have entered into the Deed without this clause as it would have been impossible for me to obtain finance which was the only way I could complete the purchase of 11 and 82 Woolgen and so obtain the funds needed to make the settlement payment.
426 After Mr Phillips returned, he said words to the effect that Hamidul would not sign a deed without including the Amin Homes Mahmiat Logan and APG companies. I wanted to resolve the matter so l agreed to include Amin Homes Mahmiat Logan and APG in the Deed.
427 I was not part of the conversations with Mr Phillips and Mr Elliot when Mr Phillips left the room, but I have no reason to believe that my lawyers did not convey my position as set out in paragraphs 395 and 415 above and by their words and actions I believed that my intentions and instructions had been conveyed. I relied on them actually and fully conveying my instructions.
428 Kazem had his laptop with him and was able to work from the Supreme Court.
429 I understand that there were further back and forth emails between the lawyers to finalise the deed of settlement as I could see Kazem working on his laptop which led me to assume that he was making amendments to the draft deed to send to Foez. I generally was not involved in the back and forth amendments as that was being handled by Kazem and was not copied into any emails that he was receiving or was sending.
In the event of a failure to pay any of the Instalments in full or on time, or breach of any other term , and a notice is given to the Amin Parties to remedy that breach and the breach is not remedied within fourteen (14) days (with time being of the essence) then all of the balance of the Settlement Sum not then paid shall be immediately due and payable.
There was a minor change to clause 6. Mr Castle SC contends (and I accept) that document was labelled, at the footer of the page, as “#20077947v1” [475] .
Clause 7 was changed as follows
The Amin Parties charge their present and any and all future interest in:
(a) all or any part of 11 Woolgen and 82 Woolgen, or any contract in respect thereof; and
(b) shares held in any MH Group or Amin Companies (which for the avoidance of doubt includes rights and entitlements under or in respect of those shares such as any entitlement to receive or share in the profits by way of dividend or otherwise),
as security for the payments of any amount payable under this Deed for the benefit of Islam and will execute all documents necessary to register or record such charge.
Provision of Information
The Amin Parties will keep Islam informed of any developments in relation to conveyance of 11 Woolgen and 82 Woolgen, and financing or attempt to secure financing in respect of these properties within a reasonable period of time after becoming aware of those developments
Mr Castle SC contended that Mr Islam knew that Mr Alamin would require financing to complete the conveyance/purchase of the 11 Woolgen [477] .
In context, the contention was essentially that the repayment of the instalments under the Settlement Deed was tied to financing to complete the purchase of 11 Woolgen. I do not accept that per se. Mr Islam’s evidence was as follows [478]
Q. But you are trying to avoid the obvious, I suggest to you sir, which was this deed was wholly founded upon Mr Alamin owning 11 Woolgen and getting finance to complete the purchase; what do you say about that?
A. Not true.
…
Q. I suggest that your side, as the price of allowing Mr Alamin to go and get the finance, wanted to make sure that he kept you up to date with how he was going with his attempts to secure financing; correct?
A. Yes.
Q. Because you didn’t ask for provision of information about how he was going with his relatives overseas, or the hospital in Bangladesh; did you?
A. I told you before that he has different sources to raise money.
At 12.47pm, Mr Elkheir emailed a revised draft (5) of the Settlement Deed to Mr Dewan. The main changes made were as follows [481] :
Clause 5 was amended to include specifically breaches of clauses 2, 3, 4 and 6.
Clause 7 (see below) was amended to include a new provision that Mr Islam acknowledges and agrees and consents to temporary withdrawal of any of the charges referred to in the preceding clauses as and when required by the Amin Parties to allow them to refinance or encumber either property with a use of those properties for a purpose as consented to by Mr Islam under clause 6(ii) of the Deed.
Clause 9(b) was amended to specify any claim for payment under clause 4.
Clause 12 was amended to include that the clause applied only where a written request was made by Islam, and requiring the Amin Parties to respond within 14 days.
Clause 13 was amended to include clause 13(b), specifically that such business opportunities must not be pursued using the financial resources of the MH Group (but permitted them to do so if profits from existing MH Group projects are used).
An additional clause 19 was proposed, regarding non-disparagement.
Clauses 6 and 7 (12.47pm) were in the following terms
6. Restraint on Dealing
The Amin Parties jointly and severally agree that up until the Settlement Sum has been paid in full, they will not transfer, dispose of, encumber or otherwise deal with all or any part of their interest in either or both of 11 Woolgen and 82 Woolgen, or any contract in respect thereof, other than for:
(i) sale of lots in their respective plans for sub-division; and
(ii) finance or encumbrance for the purposes of Completion of the Contract for Sale for 11 Woolgen and the Put & Call Option Deed for 8 Woolgen
without the prior written consent of Islam (which consent shall not be unreasonably withheld)
7. Charge
The Amin Parties charge their present and any and all future interest in:
(a)
(i) all or any part of 11 Woolgen and 82 Woolgen, or any contract in respect thereof; and
(ii) shares held in any MH Group or Amin Companies (which for the avoidance of doubt includes rights and entitlements under or in respect of those shares such as any entitlement to receive or share in the profits by way of dividend or otherwise), as security for the payments of any amount payable under this Deed for the benefit of Islam and will execute all documents necessary to register or record such charge.
(b) Islam acknowledges and agrees and consents to temporarily withdrawal of any of the charges referred to clauses 7(a) or 7(b) as and when required by the Amin Parties for the purposes of allowing the Amin Parties to refinance or encumber either property in accordance with a use of those properties for a purpose as consented to by Hamidul Islam under clause 6(ii) of this Deed [482] .
At 1:03pm, McCabes (Mr Wade) sent an email to Mr Elkheir confirming receipt of the draft, stating that he understood that Mr Elliott SC had provided their counsel (Mr Philips) with a more recent draft and with a request that they review the version provided by Mr Elliott SC for any further amendments [483] .
Mr Castle SC contended that by 1.03pm, there were two different draft deeds in circulation amongst the Islam and Alamin parties. One exchanged between solicitors, and one exchanged between counsel [484] . I can accept that there was a more recent draft. To that extent, the proposition is correct, so far as it goes.
Mr Islam states that Cordoba Legal provided their suggested amendments by hand in Court following that request by McCabes. He states that neither he nor McCabes have a copy of that version [485] .
However, neither side adduced a version that had been handed by Mr Elliott SC to Mr Philips.
At 1:38pm, Mr Wade sent an email to Mr Elkheir with a revised deed of settlement and release [486] . This version was not tracked or marked up [487] . The developments included:
Deletion of clause 7(b) [488] .
Rejection of the timeframe of 14 days in clause 12.
Rejection of clause 13(b).
Addition of clause 17(d), namely that both warrant and represent to each other that … “they hold the positions and have the authority to enter into this Deed for and on behalf of the company, trustee, or other entity to which this Deed concerns”.
Addition of clause 18(b), that the Parties must not make comments to other persons or entities which denigrate or disparage any other Party to the Deed and rejection of the cl 19 standalone non-disparagement clause.
Thus in the 1.38pm version, clause 7 (which at 12.47pm had 7(a)(i) & (ii) and a new 7(b)) was revised back exactly the form of the prior 9.22am version. Cl 7(a)(i) reverted back to the prior 7(a) and 7(a)(ii) back to the prior 7(b).
The wording in the 9.22am and 1.38pm versions was [489]
7. Charge
The Amin Parties charge their present and any and all future interest in:
(a) all or any part of 11 Woolgen and 82 Woolgen, or any contract in respect thereof; and
(b) shares held in any MH Group or Amin Companies (which for the avoidance of doubt includes rights and entitlements under or in respect of those shares such as any entitlement to receive or share in the profits by way of dividend or otherwise),
as security for the payments of any amount payable under this Deed for the benefit of Islam and will execute all documents necessary to register or record such charge.
Mr Castle SC contended as a factual finding that that Mr Amin’s proposed cl 7(b) was removed by mistake or alternatively, intentionally, without that change being drawn to the attention of Mr Alamin and his solicitors which was, in all the circumstances, misleading and deceptive conduct by Mr Islam (through his lawyers) [490] .
In the passages cited by Mr Castle SC, Mr Islam’s initial evidence is that the removal was not a mistake [491] . When Mr Castle SC returned to further cross examination of Mr Islam, Mr Islam continued to assert that it was not a mistake [492] . I accept his evidence. I deal below with the issue of whether the failure to draw attention to the removal constituted misleading and deceptive conduct. However, it suffices to note at this point that I find that it did not.
430 Eventually, and to the best of my recollection, Foez’s office organised for a copy, of what I understood to be the final draft, of the settlement deed to be printed and brought to the Supreme Court for signing.
431 At pages 1648 - 1800 is a copy of variations of the draft deed that I have access to together with their covering email. I do not know if this is all variations.
This release shall not operate in respect of loans internal to the MH Group, as between any member of the MH Group and Islam or Alamin, or internal to the Amin Group.
The footers of the Settlement Deed each had a number followed by an indication of the version. The Settlement Deed at 9.22am had “v1”; at 12.47pm also “v1”; at 1.38pm “v3”; and at 2.54pm “v4” [495] . The draft which is “v2” of the Settlement Deed is not in evidence.
Mr Castle SC spent time focusing on the omission/removal of cl 7(b) from the draft of the Settlement Deed at 1.38pm from the earlier draft at 12.47pm and made various submissions regarding this.
He contended that in the process of rapid exchange of “multiple drafts”, cl 7(b) was omitted unintentionally. He says that I should reject Mr Islam’s evidence that there was (at 1.38pm) intentional non-acceptance of Mr Amin’s proposed cl 7(b) in the 12.47pm draft and that I should find that there was a mistake in its omission [496] . Further, he submitted that the omission of “v2” of the draft of the Settlement Deed from evidence compelled an inference that the omission was mistaken [497] .
Mr Elliott SC’s submissions addressed Mr Amin’s proposed cl 7(b). Essentially, he submitted that the omission was not a mistake. Rather, the proposal by Mr Alamin’s lawyers (which Mr Castle SC accepted [498] ) had been intentionally rejected by Mr Islam who did not wish to weaken his security position [499] .
One possibility which I raised during submissions is that “v2” was the tracked version of the draft at 1.38pm and “v3” was the version in which the track changes had been accepted. However, Mr Elliott SC noted that some changes had been accepted and others not [500] . In final submissions Mr Castle SC sought to take some comfort from my raising of a possibility that perhaps a marked up version was “v2” and a clean version was “v3” [501] .
In any event, I reject the notion that the absence of “v2” of the draft Settlement Deed compels a finding that the omission of Mr Amin’s proposed cl 7(b) was a mistake. It was available to either party to either adduce “v2” or explain its absence from the evidence. Neither party did so.
As to whether the omission from the ultimate form of the Settlement Deed was otherwise a mistake, it was proposed by Mr Alamin’s representatives and omitted in the next draft by McCabes. In light of Mr Islam’s evidence, which I accept on this issue, his assertion in this regard is not inherently unbelievable. I see no reason why I am compelled to find its absence was a mistake.
At around 3.30pm, a final signed version was executed [502] .
I have set out above relevant provisions of the Deed. Mr Castle SC contended that the Settlement Deed varied the alleged JV in the following respects [503]
[1] Alamin and Islam agreed to treat 11 Woolgen and 82 Woolgen as joint venture properties.
[2] Alamin reinstated Islam as director of MH Affordable Homes Pty Ltd.
[3] the joint venture was terminated going forward in respect of any further properties that either Alamin or Islam (and their associated entities) wished to acquire, subdivide and/or sell adopting a business model similar to that utilised by the joint venture.
The premise that the Settlement Deed “varied” the alleged JV is contestable. The nature and extent in terms of the so-called JV was not the subject of detailed submissions.
The first proposition is contestable and I do not accept it per se. There is nothing in the Settlement Deed in the recitals or elsewhere which suggests Mr Islam agreed to treat 11 & 82 Woolgen as JV properties.
The second proposition is correct at least so far as directorship is concerned (see cl 2 of the Settlement Deed).
The third proposition might well be correct in terms of in terms of practical effect. However, recital “L” suggests that the Settlement Deed was resolving a dispute between the parties.
44 I had always understood that any payment under the Deed was to be on the basis that I had purchased the Leppington Property as the Court Proceedings were seeking to obtain the profit from the Leppington Property.
45 If I cannot purchase the Leppington Property, there will be no profit from the development.
46 If I cannot purchase the Leppington Property, I will not have the funds available to make payment pursuant to the Deed and I do not believe I will be able to obtain any other financing whilst a PPSR charge is in place.
433 The final form of the Deed which was provided to me then to be signed and which I did sign is not in the form I believed it to be in based on my instructions set out at paragraph 395 to 415 above. My solicitors never told me that the Deed was inconsistent with my instructions. I also relied on the matters that had been conveyed to me by my solicitors indicating that Mr Elliot had agreed to add into the PPSR clause the ability for it to be lifted so that I could obtain financing.
434 At the time I entered into the financing arrangement with Centruia Bass [sic] at paragraph 137 above, I was not aware that it restricted the placing of any charges on my shareholdings or, if I was told this at the time I entered into the Deed, I was not aware or did not recall that this restriction prevented or restricted the charging of my assets (without the approval of Centuria Bass) as my assets were also security for that financing arrangement.
435 The Deed provided for a payment schedule as follows:
a. $350,000 by 31 December 2022;
b. $1,000,000 by 30 June 2023; and
c. $1,900,000 by 28 February 2024.
436 At the time of signing this revised Deed, based on the matters set out above at paragraphs 393 to 425, I believed that Hamidul and his legal representatives were all aware that payment under the Deed was contingent upon, and could not occur before, 11 Woolgen was purchased because this was the property expected to provide the greatest return as set out in the Feasibility Documents provided at paragraph 393 and was part of the properties that Hamidul sought to obtain a half share in, and that I was not able to pay the cash under the deed, and further, that any PPSR charge or caveat that was placed on any of my interests would have to be removed to allow me to obtain financing so that the purchases of 11 and 82 Woolgen could occur. I would never have entered the deed otherwise because it would have been impossible for me to fulfill the deed.
437 Further, as set out in the Feasibility Document, the value of these two companies was, at the stage the Deed was entered, limited to the interest each company had in the land, being the opportunity to complete on the 11 Woolgen contract and the option to purchase 82 Woolgen, together with the pre-sale amounts generated from 11 Woolgen. The expected profits that (I hoped) would eventually be generated from those projects and could not be obtained until the land was purchased. What the deed did was give Hamidul access to the expected profits of those companies before they were realised.
438 This was the reason I prepared the Feasibility Document - to ensure that what was agreed to by me could actually be delivered upon.
439 I felt confident to proceed with the hearing and cross-examination by Mr Elliot. Mr Elliot had worked on my instruction in the past and I felt I knew him very well particularly because he attended with me in the Kelly Street proceedings mediation.
440 Before I signed the Deed, it was never explained to me by my solicitors that the Deed did not reflect my instructions including that the payment of the settlement sum could only occur after the settlement of 11 Woolgen. It did not cross my mind at the time the deed was entered that the purchase of this property may not occur. But, if it did not occur, there would be no property from which to generate any profit - I would never have entered into an agreement to pay Hamidul profits from a property development that did not exist.
Offer could only come from proceeds from 11 Woolgen and 82 Woolgen/Foez Hamidul Knew
441 Having gained an understanding of my business structure, how I am able to obtain funds from pre-sale lots, the nature of how the MH Group operated and, subsequently, my own companies would operate, I believe that Hamidul’s advisor knew that the only way I would be able to make any payment to Hamidul was through the proceeds of pre-sold lots of 11 Woolgen. This information was obtained as set out at paragraph 72 and 377 to 427 and included information which I believed was conveyed to them by my solicitors.
442 Further to the above, at the time of negotiation the Deed as set out at paragraph 393 above, I provided Feasibility Documents, as defined in paragraph 393 above demonstrating the basis on which any funds could be paid to Hamidul.
In reply, Mr Islam states:
[MA 436] disputes that there were any communications made during the course of the negotiations that payment by Mr Alamin under the Deed “was contingent upon, and could not occur before” the purchase of any property by Mohammad or his companies [506] .
[MA 441 and 442] rejects Mr Alamin’s claims regarding payment sources [507] .
Mr Islam in his affidavit evidence stated, in respect of his knowledge and understanding at the time of the negotiations, that:
implicit in the Settlement Deed was that Mr Alamin would retain his and his Amin Group companies’ interest in 11 & 82 Woolgen, and none of the MH Group companies nor he would have any claim or interest in them [508] ; and
He was aware that Mr Alamin had already presold and was in the process of further preselling a number of proposed subdivision lots for 11 & 82 Woolgen. However, he was unaware as to when the settlement of 11 Woolgen was to take place and did not agree to any of the payments of the Settlement Amount under the Settlement Deed to be dependent or linked in any way to acquisitions or developments of those properties. He had no control over what Mr Alamin did or would do in relation to those properties after the 2021 proceedings were settled, and was never prepared to accept any settlement which linked the payment of the Settlement Amount to the expected future profits from 11 & 82 Woolgen [509] .
485 As a result of being unable to purchase 11 Woolgen, I have calculated the following losses that have been incurred by AHHW:
a. deposit totalling $1,283,700.00;
b. Shariah compliant Finance Rent and Admin fee of $503,976 pursuant to the finance arrangements I have with Centuria Bass entered for the purposes of purchasing 11 Woolgen;
c. $197,510.31 in legal fees for finance and other related matters to the 11 Woolgen project;
d. potential profit of approximately $3,950,090.36;
e. generated cash flow and revenue of $16,333,760.73 within the 5 year period;
486 In failing to purchase 11 Woolgen, I now also need to arrange for a refund of the pre-sale deposits totalling $3,772,620 (comprising funds collected by MH Woolgen and AHHW) or, alternatively, if the client agrees I may be able to transfer the purchaser to a lot in 82 Woolgen but this will mean a reduction in profit in the 82 Woolgen project.
487 As at the time of preparing this affidavit, 4 clients have terminated their contract for 11 Woolgen and 19 clients have indicated that they are prepared to transfer to another project. In the event all 19 clients are transferred from 11 Woolgen to 82 Woolgen, I have estimated that 82 Woolgen will operate at a loss of approximately $1,029,986.43.
Mr Castle SC contends that by December 2021, Mr Islam knew that the majority of the lots in 11 Woolgen had been exchanged or were likely to exchange in the next few months [511] . Initially, Mr Islam appeared to accept that that was a reasonable assumption [512] . When Mr Castle SC later returned to the topic, Mr Islam’s responses regarding available monies were qualified in terms of the various different projects.
There is evidence that as at December 2022, Mr Alamin was looking into options to finance the 11 Woolgen project. For example, on 9 December 2022 at 10.46am, Mr Alamin sent to Andrew Kingston of Pacific 8 (a financier), an email attaching documents for 11 Woolgen and seeking a loan of $4.3 million. [513]
On 5 December 2022, Mr Islam registered several PPSR charges over Mr Alamin and his interests in associated companies. The charge was second ranking after Centuria Bass [514] .
It will be recalled that Mr Alamin’s evidence is that his proposed offers were on the basis of 11 Woolgen settling on 15 December 2022 [515] . No such settlement occurred on that day [516] .
On 22 December 2022, Mr Islam’s solicitors sent a letter to those of Mr Alamin, reminding them of their client’s obligations under the Settlement Deed to pay the first instalment amount of $350,000 by 31 December 2022 [517] . In response to this letter, on 23 December 2022, Mr Alamin’s solicitors stated that the payment term in the Settlement Deed was predicated on the completion of the contract of sale for 11 Woolgen, and that due to difficulties in obtaining the required short fall of funds, completion would not be likely to occur before February 2023. Accordingly, they requested for an extension of the payment of the first instalment until 15 February 2023 [518] .
The 15 February 2023 settlement statement for 11 Woolgen, shows the balance amount payable as $3,853,300. Mr Castle SC contends that the settlement statement demonstrates payments to the 11 Woolgen Vendors totalling $1,283,700 (Payments to 11 Woolgen Vendor****s) [519] . I accept that the difference between the total purchase price of $5,137,000 and the deposits and instalment payments made of $3,853,300 = $1,283,700 (though see MFI 9 where the figures total $1,283,730).
On 22 February 2023, Mr Alamin caused Signature Homes/Amin Co to obtain financing with Centuria Bass for $4,014,000 to finance the purchase of 11 Woolgen. The finance was to be secured by a first ranking mortgage over 11 Woolgen [520] . Mr Castle SC asserts that it was Shariah Law compliant [521] .
On 3 March 2023 at 12.12am, HWL Ebsworth Lawyers (HWLE) sent an email to Mr Alamin and other parties indicating that the PPSR registration in favour of the Islam Trust must be discharged so that Centuria Bass’s security registration on settlement is first ranking [522] .
On 9 March 2023, Cordoba Legal advised Mr Alamin that they ceased to act for him as of 22 December 2023 [sic] [523] .
On 4 April 2023 at 1.56pm, HWLE sent another email to multiple parties saying that with regard to the PPSR registration, it would be helpful for a partial release to be signed [524] .
On 21 April 2023, Origin Lawyers (Mr Alamin’s then solicitors) sent to McCabes (acting for Mr Islam) a without prejudice email, seeking execution of the Settlement Deed with regard to a removal of the PPSR charge, and noting that Mr Alamin may have to commence proceedings if the PPSR charge is not removed [525] .
Mr Castle SC contended that on 8 May 2023, Mr Khan, accountant for the MH Group, advised Mr Alamin and Mr Islam that, amongst other things, resolutions would be required to be prepared for distribution of the profit from MH Angle Vale to them [526] .
On 12 May 2023, these proceedings were commenced and there was a listing before Slattery J on 24 May 2023 [527] .
Mr Castle SC contended that a suggestion was made by Slattery J that Mr Islam temporarily uplift the PPSR charge (the Withdrawal Suggestion) which was rejected on the basis that Islam wanted payment in full [528] . The relevant part of the Slattery J hearing transcript appears to be at P7 [1274]. Mr Castle SC contended that [529]
The Withdrawal Suggestion was rejected by Islam as a pressure tactic in bad faith knowing that it would cause loss to Alamin, and to members of their faith community who entered into presale contracts.
The transcript reference does not bear out the contention. Questions at T 269 regarding pressure were objected to and not pressed. I certainly do not find that the failure of Mr Islam to agree to the “Withdrawal Suggestion” was a pressure tactic and motivated by bad faith.
On 16 June 2023, Mr Islam served the statutory demands referenced earlier [530] .
Mr Castle SC contended as a factual finding that Mr Islam agreed in principle with the MH Angle Vale distribution foreshadowed by the MH Group accountant (on 8 May 2023 see above) - but only on the basis that the entire distribution was directed to him [531] . The reference is to an email from Mr Dewan to Lisa Cox (a solicitor at Origin Lawyers) dated 28 June 2023 as follows
Dear Lisa
We refer to below email from the accountant of MH Angle Vale, Mr Azil Khan, and your client’s response to it.
Our client agrees in principle to the proposal contained in the email from Mr Khan.
As we understand, if the proposal is implemented, MH Angle Vale will make final distribution and transfer its two unsold lots to the current shareholders and then be deregistered on or before 30 June 2023.
As we further understand, there are approximately $1.3 million in funds available in MH Angle Vale, along with two properties with a combined value of approximately $500,000.
We request you confirm if your client agrees to have his entitlement to his share of distribution as well as one of the lots that he would ordinarily receive being transferred to our client, in reduction of the amount owed by him and his companies under the settlement deed of 22 November 2022.
We request your response by midday tomorrow.
On 23 August 2023 (as noted above) the resale of 11 Woolgen to Ms Letta was completed. Mr Castle SC contended that the $1,283,700 had been forfeited [532] . Certainly, that figure appears to have been claimed as a loss [533] . However, Mr Castle SC during the hearing indicated to me that there was a separate legal case in which there was an attempt to recover those payments [534] . I do not know what has happened in relation to that case and whether any part of that sum has been able to be recovered.
On 25 September 2023, the Put and Call Option Deed for 82 Woolgen was exercised by Mr Alamin on behalf of Amin Murooj and the contracts were exchanged, with the completion date being 6 November 2023 [535] .
On 24 November 2023, APGM was registered by Mr Alamin to purchase 82 Woolgen, Mr Alamin negotiated with the vendor, on or around 1 December 2023, a contract was entered into between APGM and the vendors to purchase 82 Woolgen, which was completed on 21 December 2023 [536] . Mr Alamin seemingly accepted that APGM, should, in effect, take the place of Amin Murooj in the Deed though stating “is not liable to pay the Settlement Amount in the Deed as the 11 Woolgen property was not purchased and therefore profits are not able to be generated from that development” [537] .
Mr Castle SC addressed various of the projects noted in Mr Islam’s affidavit [538] . He contended that the:
Fourth Avenue Project has 3 unsold lots and is awaiting sewer connection [539] .
Gurner Avenue Project has 13 lots remaining to be sold [540] . I note that Mr Islam’s evidence suggested that there were (or may be) more than 13 unsold lots [541] .
Boyd Street Project has been sold and an amount of funds generated from presale of lots remain in the Court’s trust account [542] .
Harris Street Project is complete and awaiting final distribution of profit [543] .
Dickson Road Project has 2 to 3 lots remaining to sold and is awaiting council rezoning so that a development application can be submitted [544] .
The plaintiffs’ claim is that the payment in cl 4 was conditional and dependent upon future events, namely Amin Co/Signature Homes and Amin Murooj becoming the registered proprietors respectively of 11 Woolgen and 82 Woolgen (alleged pre-condition). The precision of that case was relaxed at least once during Mr Castle SC’s opening, which described the timing of the payments being “connected with the completion of the developments” of those properties [545] .
Mr Castle SC explained the relief in paragraph 6(i) ASC by reference to Mr Alamin’s evidence that he proposed offers on the basis of 11 Woolgen settling on 15 December 2022 (though no settlement in fact occurred on that day) [546] and in respect of 82 Woolgen on 25 September 2023, being the date on which Amin Murooj exercised the option, and entered into a contract to purchase 82 Woolgen [547] .
the surrounding circumstances are relevant to the three ways in which the plaintiff puts its case:
a. a rectification case …;
b. a case of misleading and deceptive conduct under s.18 of the Australian Consumer Law (ACL), giving rise to an entitlement to have the Deed of Settlement varied under ACL s.243 …;
c. in equity by reason of the joint venture duties owed by Islam to Alamin …
Mr Castle SC’s submissions regarding rectification of the Settlement Deed were based on premises that:
there was a JVA between Mr Alamin and Mr Islam and related parties in respect of specified property projects [550] ;
the alleged JV was conducted according to a known business model [551] ;
the alleged JVA was varied relevantly in three respects (continuing the JV in respect of existing JV Properties only; terminating the JV in respect of any future properties; and treating 11 & 82 Woolgen as if they were JV Properties) [552] ;
rather than bring these properties back into the joint venture formally, the Settlement Deed was a type of practical means by which Mr Islam would gain an equivalent economic benefit from the development of those properties [553] ; and
the purpose of cl 6(ii) was to permit financing or encumbrance for the purpose of completing the contract for sale [554] and in any event funds to pay the instalments could have come not merely from existing presale payments but also future presale payments [555] ; and
Mr Alamin and Mr Islam owed “some sort of moral duty” to members of their community and wished to avoid claims in respect of the presale payments [556] ; did not wish to abandon the (Islamic) community [557] and it was an “implicit understanding” that the payments (presumably amount referable to the payments) would be “transferred” or “novated” across to Signature Homes [558] and obligations to repay presale monies would not be released [559] .
Essentially, Mr Castle SC contended (as I have outlined at the start of these reasons) that because of the mutual gestalt regarding how projects were progressed and financed (and alleged fiduciary duties and implied duties of good faith conduct and cooperation [560] ), the instalment amounts and dates in respect of the Settlement Amount were predicated upon completion of the purchase of 11 & 82 Woolgen [561] , consistent with how prior/existing development projects worked [562] . Indeed, a submission was put at one point that it was further tied to future exploitation or profit from those purchases.
Mr Castle SC, in PS3 (Factual Submissions – Speaking Notes – Fourth Point), addressed what he contended was the established way the gentlemen did business
Fourth, as a matter of context, under JV, established way of doing business to meet the needs of their customers under Islam finance – gestalt – background they both knew:
• secure a property with a contract or an option and pay a deposit – semi rural property with potential tied to sewer and land release
• engage in presales – 2 elements – land and development – receive instalment payments – obviously popular
• land payments permitted completion of the contract – doing a DA – depend on councils
• construction for the subdivision works – also called outworks
• moneys that came in would be lent by intercompany loans within the JV
• risk was that if purchase not completed, the moneys would be refunded – Boyd Street litigation issue
• by the time of 11 Woolgen – they also had borrowed money to assist in purchasing property – Centuria Bass: took mortgages and PPSR charges.
Mr Castle SC emphasized that the Settlement Amount ($3.25 million) was inextricably tied to the purchase and future exploitation of the opportunity that those two properties represented, as part of the ordinary business of the joint venture [563] . Rather than bring these properties back into the joint venture formally, the Settlement Deed was a means by which Mr Islam would gain an equivalent economic benefit from the development of those properties. Yet Mr Islam sought the benefit of that purchase and development (through payment of the Settlement Amount), without being prepared to incur any burden of cooperating or facilitating the purchase and development occurring [564] .
Further, he contended that the so-called gestalt was based on prior cooperation, and extended to Mr Islam being obliged to lift the PPSR charge to allow Mr Alamin to purchase 11 Woolgen and that this was also underpinned by commercial logic [565] . The problem, Mr Castle SC contended, was that Mr Islam impermissibly failed to cooperate [566] , or lift his PPSR charge [567] .
He also contended that the above analysis of the gestalt was supported by (or at the very least consistent with) the sequence of events at least from the formulation of claim in the 2021 proceedings as an alleged diversion of a joint venture opportunity, and the failure to make provision for a termination of the joint venture, evolving through the settlement process, in which (inter alia) Mr Alamin (by Cordoba Legal) made a settlement offer on 17 November 2022 linking payment and the settlement of the properties and the response from Mr Islam’s lawyers, McCabes, on 19 November 2022 [568] . He submitted that Mr Islam’s evidence recognised that there was “more” to facilitating the purchase of 11 Woolgen than appears in the Settlement Deed [569] .
Mr Elliott SC contended that there was no clear and convincing evidence justifying rectification [570] .
Mr Elliott SC made some submissions which were really directed towards construction of the clause, contending the rectification case is untenable because the instalment payments are time essential and as matter of construction unqualified and unconditional [571] . Such a submission is understandable in the context I have described above, in that rectification is engaged consequent upon the issue of whether construction avails the claimant.
Mr Elliott SC observed that a failure (whether by conscious forensic decision or otherwise) to lead evidence from actual communications of the parties, their lawyers and agents limits proof of the contended common intention [572] .
He contended that the respective legal representatives were experienced [573] , and noted that the Settlement Deed (by cl 20.9) confirms the parties had sought their own legal advice in respect of the Deed, and that this aspect is not challenged [574] .
Mr Elliott SC made a number of preliminary points regarding the claim for rectification. He noted the shifting and confusing way in which the claimed “common intention” qualification on the payment of the instalment amounts was put. He emphasised that differing qualifications had been advanced by Mr Castle SC, which were different from the claim for relief in the ASC, predicated on Signature Homes/Amin Co and Amin Murooj respectively becoming registered as proprietor of 11 & 82 Woolgen [575] . This included the notion that payment should be precluded by injunctive relief “other than from profits earned by those companies from the acquisition and development of the properties” [576] and the payments were connected to the “completion of the development” of the properties [577] .
More specifically, Mr Elliott SC advanced 8 reasons as to why the rectification claim ought to fail.
First, cl 4(b) is unconditional [578] .
Secondly, the payment of the instalments was strict, with time being of the essence [579] , and further, default in the first instalment triggered payment of the full amount [580] .
Thirdly, Mr Alamin failed to lead any evidence as to the actual communications between the parties’ lawyers and authorised agents present during the negotiations, leaving an absence of direct evidence of outward expression of intention [581] .
Further, to the extent that Mr Castle SC (or Mr Alamin) contended that there need not be any communication of intention, and that it will be sufficient merely to prove that each party held an intention, uncommunicated to the other, with the intention arising from a gestalt, Mr Elliott SC submitted that this involves a misreading of Ryledar and was contrary to the High Court decision in Simic [582] . He submitted that this is not a gestalt case [583] .
Fourthly, there is no corroborating witness to Mr Alamin’s evidence as to what he claims to have been raised and discussed internally by him within his own negotiating camp [584] and regarding his assertions as to how the clauses operated [585] .
Fifthly, Mr Alamin’s uncorroborated evidence was found wanting when tested through cross-examination, with his answers in the witness box demonstrating that he probably did not hold the intention he had asserted in his affidavit. The evidence of past dealings showed a typical approach whereby presale monies were received and spent well before settlement of the underlying contract to purchase land with an inherent risk being taken by spending that pre-sale money away without having secured actual ownership of the property, in the hope or expectation that settlement would later eventuate. This risky business, but one the parties pursued time and again, which is contrary to the gestalt case. Elaborating on this, Mr Elliott SC stated that [586] :
Mr Alamin admitted that all he considered at the time of entering into the Settlement Deed was the amount of money he would make from 11 Woolgen presale payments, not only in respect of the first instalment [587] (see above) but in respect of all instalments [588] , in a context where: (a) receipt and spending of presale payments was quite temporally disconnected from the completion of purchase of the land and he was not even thinking of those moneys as being his only source of funds to pay Mr Islam [589] ; (b) he had funds available to him through MH Affordable and its other projects, his other business interests and family and friends [590] ; (c) the prospect of not purchasing 11 Woolgen had not even occurred to him as a possibility [591] ; and (d) if 11 Woolgen was not being purchased in March 2023, he “would have to take out a loan to pay” the settlement amount to Mr Islam, but never did [592] ;
his attempt to explain his understanding of the payment obligation in cl 4 of the Settlement Deed being conditional in the way he alleges in the proceedings, by reference to clause 8 (the caveat clause) was unconvincing, and unlikely to reflect what he actually thought at the time [593] , he ultimately conceding that the caveat provision was only concerned with a caveat that would exist after settlement of the purchase of the property had occurred [594] ; and
Mr Alamin’s agreed to settle on the best terms he could, backing himself to be able to come up with the money needed within the stipulated time frames and was motivated by avoiding the risk of liquidation of the MH Group companies and associated community shame [595] .
Sixthly, the contended rectification is contrary to the objective evidence both by reference to prehearing proposals (in circumstances where Mr Islam had squarely rejected a proposal which sought to link payment to the future events concerning these two properties), he (Mr Islam) having no ability to control what would or would not happen in relation to the purchase of those properties going forward, the initial handwritten document, subsequent draft deeds and the executed Deed itself [596] .
Seventhly, Mr Islam’s evidence was that he did not hold the alleged intention and he was simply concerned to be paid. Mr Alamin had spoken to Mr Islam over time in terms which indicated that Mr Alamin had a variety of sources of funds. However, Mr Islam was indifferent to where Mr Alamin would source the funds for payment of the instalments and in any event was in no position to control what would occur in respect of 11 Woolgen [597] .
Eighthly, the alleged conditionality of the payment obligations are unclear, confusing and convoluted such that rectification would not be ordered. The uncertainty including what were to happen if: (a) one or other of 11 & 82 Woolgen was acquired by the relevant company and the other does not; or (b) Mr Alamin simply decided to cause his companies not to proceed with the acquisitions and to pursue other opportunities instead. Mr Elliott SC submitted that it was unlikely Mr Islam would have given up his rights to clear and timely payment by reference to the above and unknown risks potentially postponing payment forever [598] .
Mr Elliott SC made various submissions to refute Mr Alamin’s claims that Mr Islam is obliged to postpone his charge. In summary, Mr Elliott SC contended that:
the claims were misconceived or constructed, and not due to any legal rights but rather other factors such as Mr Alamin’s own convenience [599] .
Mr Alamin delayed in making such claims with the first communication seeking removal of the charge occurred in March 2023, being well over three months after the execution of the Settlement Deed [600] and in a context in which the Amin Parties were in breach of the Settlement Deed, including transferring his shares in Signature Homes/Amin Co to MSAA Family on 15 February 2023 [601] .
Mr Alamin indicated that he could borrow to pay the Settlement Amount [602] , he had not provided any details about presale amounts or his own resources so as to give any credible clarity about what precise sum was needed to complete the purchase of 11 Woolgen [603] , and he had rejected alternatives such as monies from the MH Angle Vale project [604] .
Mr Elliott SC says that in the above circumstances, and additionally where Mr Alamin had not paid any money (not even “one cent” [605] ) Mr Islam was not only entitled to refuse to withdraw his charge but actually to enforce it [606] .
Separately from the points which I have addressed above, namely whether Mr Amin’s proposed cl 7(b) was omitted by mistake or intentionally rejected by Mr Islam, Mr Elliott SC spent some time emphasising the distinction between the work done by cl 8 and cl 7. He contended that Mr Amin’s proposed cl 7(b) is directed to a different issue to cl 8 (as Mr Alamin conceded in cross-examination), namely the confirmation as to the status of the charge granted in cl 7 and how that charge would be recognised on title following any successful acquisition of the properties yet to be acquired and a limited exception to the ongoing maintenance of the caveat following any such acquisition [607] .
Mr Elliott SC otherwise relied upon his earlier submissions (appropriately adapted) addressing the rectification claim regarding cl 4 [608] .
Mr Elliott SC indicated that it was important to understand the nature of the 2021 proceedings in order to properly appreciate the context for the Settlement Deed [609] .
First, he described those proceedings as: complaints by Mr Islam regarding misconduct of Mr Alamin in respect of the conduct of the affairs of the MH Group having various effects; his purported removal as a director; the misallocation of shares so as to favour Mr Alamin over Mr Islam; and the secret taking by Mr Alamin of MH Group assets and opportunities, in particular bearing upon 11 & 82 Woolgen [610] . Expressly, he did not invite me to make findings regarding or proceeding upon the basis of the correctness of the allegations [611] .
Secondly, regarding 11 Woolgen, he contended that:
Mr Islam’s understanding as at the time of the 2021 proceedings regarding presales from 11 Woolgen was based on his information as at June 2021 [612] ;
Mr Islam investigated his suspicions regarding Mr Alamin’s conduct with the result that in July 2021: Mr Alamin put the purchase of 11 Woolgen on hold; he purported to remove Mr Islam as a director of MH Affordable and other companies; and he withdrew his company from the June Sale Agreement [613] ;
the cross-examination of Mr Islam regarding his knowledge of presale monies in respect of 11 Woolgen was, in the above context, ill-founded because he did not know what had happened after June 2021, having been excluded from involvement [614] ; and
From June 2021, Mr Alamin dealt with 11 Woolgen as if it was his own property and used his own companies to seek to proceed with it [615] .
Thirdly, he contended that Mr Islam’s discovery after bringing the 2021 proceedings that Mr Alamin had used Amin Murooj to purchase 82 Woolgen and presale amounts from 11 Woolgen, and Mr Alamin’s claims as to why he acted the way he did (set out in evidence in the 2021 proceedings and in these proceedings) formed important context for the negotiations in respect of the Settlement Deed [616] .
Fourthly, he referred to and highlighted various aspects of the various offers that had been made prior to the commencement of the 2021 Proceedings [617] . He emphasised that: (a) the notion of 11 Woolgen being held on trust or connecting payment of some amount with settlement of any property was rejected and never raised again; (b) at no stage had Mr Alamin offered to bring 82 Woolgen into the MH Group; and (c) payment of the initial instalment amount was in any event imminent and not subject to settlement of the property purchases [618] .
Further, he stressed that Mr Alamin did not wish for a winding up to occur [619] .
Fifthly, he stressed that at no point during the negotiations did Mr Alamin seek to reintroduce any condition that linked payment of the Settlement Amount to settlement of any land purchase [620] and Mr Alamin’s attempt to introduce the new cl 7(b) had been rejected [621] .
Sixthly, he referenced various breaches of the Settlement Deed by Mr Alamin including the incorporation of APGM [622] .
Mr Elliott SC disputed that any gestalt understanding was applicable or made out on the facts [623] .
First, he submitted that rectification and consequently any gestalt requires disclosure of intention albeit that the disclosure need not be express. Gestalt in the context of rectification will only have a role to play once there is actual communication or disclosure by words or action it is not a substitute for communication [624] .
Secondly, he submitted that the actual communications from Mr Alamin to Mr Islam shows that the contended rectification terms were only initially and briefly positively promoted by Mr Alamin and rejected by Mr Islam [625] .
Thirdly, Mr Alamin’s gestalt theory, that settlement of purchase of a property with payment on the basis that settlement of the property would occur at an early point in a project life cycle or that most pre-sale payments would be made after settlement and were thus conditional on settlement, falsified the history of projects whereby most presale payments were received and spent in advance of any later settlement of purchase of the property [626] .
We say as part of that, it was in their interest because Mr Islam was getting money, Mr Alamin was getting free to take these properties once he’d paid out Mr Islam’s share, and so that’s the gestalt and the instalment payments, the movement from, “I’ll pay you a lump sum” to “I’ll pay you by instalments”, the negotiation about the dates and the amounts is the conduct which did not need to be said, “We’re doing this by reference to this calculation” or that calculation because they were all able to do their own calculations. Mr Alamin had the information. He knew what the presales were, at least on the MH Affordable side. He knew it was popular. He knew what the monies were that were being dealt with and were coming in, so these parties knew all of that and the thing they did was then to negotiate the instalment schedule.
Otherwise in reply, Mr Castle SC:
contended in part by reference to P4 (Tab 2 [223]-[227]) that Mr Islam knew that contracts for the majority of the lots had already been exchanged or were likely to be exchanged, knew details of the clients who had booked or made payments in what was in the bank accounts [628] .
took exception to what he contended were serious attacks against Mr Alamin regarding wrongful division of funds and breach and not paying monies to him without being put to Mr Alamin. He emphasised the seriousness of findings regarding dishonesty [629] .
disputed that the extension of time regime was problematic, asserting that Mr Alamin was subject to fiduciary and contractual duties, had a very clear incentive to complete as quickly as he could, was subject to the security provisions under the Settlement Deed, and felt an obligation towards the purchasers/customers in a context in which the parties relationship was not ending but one of working together [630] .
accepted that cl 8(a) addresses the point of time after the Amin Parties become registered as proprietor of 11 and/or 82 Woolgen, and accordingly cl 8(b) does likewise. However, he says that it is a mistake to assume that Mr Amin’s proposed cl 7(b) charge would be recognised on title following any successful acquisition of the properties, because cl 7 creates an immediate charge and operates immediately and so extends to purposes under c 6(ii) not only to refinance but also to finance and encumbrance [631] .
submitted that, in cross-examination, Mr Alamin suggested that the instalment payment obligations in cl 4 were in some way tied to the caveat provisions of cl 8 [632] . Mr Elliott SC directed Mr Alamin’s attention to the provisions of cl 8, inviting him to accede to the proposition that he understood that Mr Islam could only lodge and maintain a caveat over the two properties after Mr Alamin’s companies had become registered proprietors cl 8 had nothing to do with the Amin parties obtaining funds to complete the purchase of either property [633] . Mr Alamin gave conflicting answers. Initially, he indicated a caveat could be lodged before his companies became registered proprietors [634] , a little later he accepted it could only happen after his companies had become registered proprietors [635] , then he reverted to his earlier position (namely a caveat could be put on prior to the Amin parties becoming registered as proprietor of the properties) [636] , then he accepted that a caveat could be lodged only once his companies became registered proprietors of the properties [637] , before finally reverting to the position that under cl 8, a caveat could be lodged at any time [638] . Contemporaneous with that vacillation, at several points he asserted (non-responsively) that cl 8 was put in to give him an opportunity to get finance [639] .
referenced Mr Alamin’s evidence that “I would not have entered into the Deed without this clause as it would have been impossible for me to obtain finance which was the only way I could complete the purchase of 11 & 82 Woolgen and so obtain the funds needed to make the settlement payment” [640] .
addressed for more abundant caution, Mr Elliott SC’s submission above that Mr Alamin failed to lead any evidence as to actual communications of the parties’ lawyers and authorised agents regarding the negotiations. He sought to explain why there was no evidence called by Mr Alamin’s former solicitors (alluding to the fact that they were asserting a lien over his file) [641] .
Rectification requires discerning the parties’ actual intention mutually held, as viewed objectively from their words or actions [642] .
I observed at the outset that the word ‘gestalt’ does not appear in the pleadings and agreed issues nor is it used by Mr Alamin in the evidence in the case. Nonetheless, it was expressly advanced by Mr Castle SC in pre-hearing, opening and later submissions. There are a number of obstacles to accepting Mr Castle SC’s rectification submissions, which lead me to rejecting the claim for rectification based on gestalt (and otherwise).
First, the evidentiary landscape for considering the gestalt was limited in the sense that the actual negotiations that occurred between the parties were conducted by the legal representatives, none of whom were called and gave evidence in these proceedings. There were some occasions on which the legal representatives spoke to one another at court both on 21 and 22 November 2022. However, there is no evidence of what was said by one of the legal representatives to another. Thus, in considering the claim for rectification, there is an absence of evidence regarding disclosure in the form of spoken words by one party or their legal representative to the other party or representative. Consideration of the rectification claim is in that sense limited to conduct in the form of written communications by email, or more particularly documents (drafts and final) sent by email by the legal representatives to one another [643] , and whatever might be legitimately identified as a gestalt perceived by each of Mr Alamin and Mr Islam. I accept Mr Elliott SC’s submission that the evidence regarding past dealings, including any presale monies received being spent well before settlement, is contrary (or very arguably contrary) to the gestalt case. In any event, it seems to me that there is considerable force in Mr Elliott SC’s submission that gestalt in the context of rectification will only have a role to play once there is actual communication or disclosure by words or action. It is not a substitute for communication.
Whatever was in the mind of Mr Alamin and Mr Islam and the subject of evidence of their intentions, was not said to have been actually communicated by spoken statements to each other or by their legal representatives in the form of any admissible evidence. The plaintiffs are unable to point to any commonly held intention by prior written communication (or otherwise) whereby Mr Islam accepted their contended rectifications such that a mutual intention existed.
Secondly, the notion that the mutual gestalt arising out of how prior/existing projects were progressed and financed, even if, as Mr Castle SC says, it included the context in which the Settlement Deed was entered, seems to me to ignore or seriously underplay the fact that the parties were in dispute and the reasons for that. The 2021 proceedings were premised (and indeed amended) on claims by Mr Islam that Mr Alamin had taken steps to purchase of 11 & 82 Woolgen outside the existing mode of which the gentlemen had operated. Trust between the gentlemen had been eroded. Even if conceptually Mr Islam could perceive how it might be beneficial for Mr Alamin to purchase 11 & 82 Woolgen in accordance with prior systems in which they had operated, there is nothing which satisfies me on the balance of probabilities that Mr Islam agreed to the proposed rectifications. Thus, the so-called mutual gestalt about flexibility in instalment payments could not to my mind, trump what was actually disclosed by text between the parties in November 2022, in light of the disputed context in which the parties found themselves in at that time including the eroded trust.
Thirdly, the claim that the payment of the cl 4(b) instalments should be qualified and payment deferred until registration of purchase of 11 & 82 Woolgen is inconsistent with claims that it should be deferred until “development*”* of the properties, and “completion of the development*”* of the properties [644] , and in any event inconsistent with the claimed relief regarding rectification, which does not claim that the initial $350,000 sum due by 31 December 2022 was so deferred [645] .
Fourthly, the above scenario does not find expression as a topic of discussion at the time of negotiation of the Settlement Deed let alone being a term of the Settlement Deed.
Fifthly, I did not understand Mr Islam’s evidence as intimating that he had an undocumented obligation to Mr Alamin to give him an opportunity to purchase 11 Woolgen for his benefit and that of the Islamic community. Nor did I understand his evidence to be that he accepted unequivocally that there was a “common intention” arising out of more to the parties’ broader understanding of how the property development business worked that payment under the Settlement Deed was expressly premised on Mr Alamin being able to complete the purchase of 11 Woolgen [646] . Mr Castle SC appeared to accept that Mr Islam had not conceded as such. Nonetheless, he contended that in discerning gestalt one looks objectively at the matter to assess, on the balance of probabilities, what was the intention of the parties based upon the way they were doing business together, rather than being bound by parties’ oral evidence particularly where it reflects their “position in litigation” [647] .
Sixthly, appeals to commercial imperatives or notions of how the parties had conducted themselves up to the time of the signing of the Settlement Deed have limitations. Assuming for the moment that Mr Islam understood that Mr Alamin would be commercially benefited by allowing 11 Woolgen to be completed and that this might (to some degree) facilitate him in being able to pay Mr Islam the Settlement Amount, it does not logically follow nor more importantly does it mean that it is actually the case that Mr Islam was prepared to postpone receipt of payment of the Settlement Amount until purchase of 11 Woolgen was completed.
Seventhly, the alleged gestalt and commercial benefit argument is undermined by the fact that by the point of time of the court hearing, negotiations and vitally, execution of the Settlement Deed, Mr Islam had ceased to trust Mr Alamin. The lack of trust was borne out of Mr Islam’s beliefs and view as to how Mr Alamin dealt with money and property, and Mr Islam was not obviously minded to subordinate his own interest in payment of specific sums by specified dates to Mr Alamin’s interest in sourcing payment from completion of the purchase of 11 Woolgen. Nor is it obvious that Mr Islam was minded to give Mr Alamin further indeterminate time to complete that purchase. Mr Castle SC sought to meet the lack of trust point by contending that the parties “weren’t trying to cheat each other” [648] . Elaborating, he contended that the payment of the Settlement Amount was not a payment to end the JV but the payment to end the dispute of a claim of a constructive trust over the properties and at no stage did Mr Islam expressly say that the instalment payments must be made irrespective of whether the purchase of 11 Woolgen proceeded [649] . Yet again the argument was premised on the notion that Mr Islam was settling on a basis that would not put at risk the ability of Mr Alamin to get the properties (11 & 82 Woolgen) [650] . Clearly from Mr Alamin’s perspective, a requirement for Mr Islam to postpone ranking of his security is understandable. However, commercial logic per se does not mean that Mr Islam intended (let alone agreed) that he would postpone his security to Centuria Bass to allow Mr Alamin financing to complete the purchase of 11 Woolgen.
Eighthly, I do not accept that the proposed rectification to cl 7 was part of a gestalt. Mr Amin’s proposed cl 7(b) was, on the correspondence, simply rejected. I have earlier addressed the issue regarding mistake.
Ninthly, as submitted by Mr Elliott SC, Mr Amin’s proposed cl 7(b) is directed to a different issue to cl 8 (as Mr Alamin conceded in cross-examination), namely the confirmation as to the status of the charge granted in cl 7 and how that charge would be recognised on title following any successful acquisition of the properties yet to be acquired, and a limited exception to the ongoing maintenance of the caveat following any such acquisition [651] .
Tenthly, the first instalment payment was due by 31 December 2022. Mr Castle SC initially accepted that Mr Alamin could not use presale payments to pay that instalment [652] . Later, Mr Castle SC contended that I should proceed on the basis that there was no impediment to Mr Alamin using either existing presale funds or new presale funds to pay the instalments of the Settlement Amount [653] . He intimated that this is consistent with the cross-examination of Mr Alamin [654] .
Eleventhly, despite Mr Castle SC’s submissions about available sources of funding, relevantly for whether a gestalt was mutually perceived, no evidence was adduced that Mr Islam was told prior to execution of the Settlement Deed, precisely how Mr Alamin proposed to make the first instalment payment (or indeed the other payments).
Twelfthly, the notion (as contended by Mr Castle SC) that Mr Islam was prepared to accept a settlement in November 2022 linked to payment of the Settlement Amount from “expected future profits” of 11 & 82 Woolgen rather than live with the liquidation of the MH Group [655] , is a type of false dichotomy (a matter which I observed during the hearing [656] ). It might have been convenient for Mr Alamin to seek to pay the instalment sums from such “future profits”. However, there is no clear evidence that Mr Alamin was unable to source funds from other than expected future profits of 11 & 82 Woolgen. Further, it is not clear that Mr Islam was prepared to wait for payment until that occurred.
Thirteenthly, as submitted by Mr Elliott SC, a sub-conscious or underlying confidence or assumption about what will happen in the future does not mean that actual thought at all was being given to the actual creation and imposition of a contractual term in a specific contract [657] .
Fourteenthly, whatever the consequence of lost presales payments (one might think) would be the subject of the contractual arrangements between MH Woolgen and the individual community members. Mr Castle SC appeared to accept that whatever arrangements there were, there was no provision for such a “novation” as referenced [658] .
In all of the above circumstances it is not necessary for me to make any particular finding regarding alleged dishonesty by Mr Alamin. On any view of the matter, irrespective of dishonesty, Mr Alamin simply did not make any payment of the Settlement Amount and has still not done so.
For the purposes of completeness, I briefly address the various other submissions made by Mr Castle SC.
First, I do not accept that Mr Islam had a sufficient level of knowledge about what monies were likely to flow from the 11 Woolgen project as at November 2022. The affidavit that Mr Castle SC cross-examined him on was dated December 2021. His questioning regarding these details was by reference to payments made as at June 2021 and the position as at December 2021 [659] . Mr Islam did not accept that as at 13 December 2021, when his affidavit was affirmed, he had enough information available to him to identify the income flow that would arise from prepayments [660] . In any event, the affidavit was sworn 11 months prior to the Settlement Deed. Mr Islam’s knowledge 11 months prior is significantly dated and not a strong basis for inferring his knowledge as at November 2022.
Secondly, I did not and do not understand Mr Elliott SC’s argument to be anything other than that cl 8 addressed an entitlement to lodge a caveat after registration. His use of terminology that clause 8 was directed to “confirmation” as to the status of the charge granted in clause 7 “following any successful acquisition of the properties…” make that clear. Rather Mr Elliott SC, in likening Mr Amin’s proposed cl 7(b) to cl 8, was principally referencing the actual wording of those clauses as distinct from their operation. Even if I be wrong on that and Mr Elliott SC was taken to be contending that the operation of the clauses was the same, as distinct from cl 8 operating post registration of title and cl 7 operating immediately, it does not seem to me that this avails Mr Alamin. If, as is the natural reading of cl 8, it did not provide any right to caveat until 11 and/or 82 Woolgen were purchased, cl 7 was the only clause providing any immediate form of security for Mr Islam. It hardly seems likely that Mr Islam (in the absence of the right to caveat the properties prior to completion of purchase and registration on title) would have been willing to agree to Mr Amin’s proposed cl 7(b), thereby postponing his only security for payment in the terms of the rectification suggested by Mr Alamin.
Thirdly, in respect of Mr Castle SC’s submissions regarding Mr Alamin’s evidence about requiring finance to make the settlement payments, there are some answers to this. One is that Mr Elliott SC is correct [661] in that he did cross-examine Mr Alamin regarding his evidence affidavit evidence that “[i]t did not cross my mind at the time the deed was entered that the purchase of this property may not occur” [662] , which he confirmed in cross-examination [663] . Next, even if his asserted thought was true at the time, there is no evidence that it was ever disclosed to Mr Islam or that by words or actions Mr Islam had any common intention understanding about that.
Fourthly, the alleged Jones v Dunkel issue can be shortly addressed. Mr Elliott SC was not putting a Jones v Dunkel submission. The absence of any evidence of the legal representatives regarding what was said or discussed in the negotiations for the Settlement Deed is not necessarily fatal to establishing the requirements for rectification. However, as I understood Mr Elliott SC’s point, it essentially inhibited the means by which any clear and convincing case of rectification could be proved.
The pleading giving rise to an alleged unilateral mistake appears in paragraph 30 ASC. It is said to be predicated on knowledge by Mr Islam of matters referred to in the particulars of paragraph 29 ASC - essentially (alleged) assumed implicit assumptions that: (a) the “Settlement Amount was conditional upon the acquisitions of 11 & 82 Woolgen occurring”; and (b) Mr Alamin and his associated entities were not subject to contractual restrictions in the granting of the charge in cl 7.
I am not satisfied that Mr Islam had any such knowledge. The particulars of paragraph 30 of the ASC also assert that the knowledge of Mr Islam includes the knowledge of Mr Dewan. However, I am in no way satisfied that it has been demonstrated that Mr Dewan had any such knowledge of those assumptions.
Precisely how the so-called fiduciary duties and the contention that unilateral mistake is not limited to cases of actual knowledge by the other party, operated so as to fix Mr Islam with any relevant knowledge of Mr Alamin’s mistake was elusive and to my mind not adequately explained.
I have already addressed above how Mr Castle SC’s submissions regarding Agip give no strong support for the proposition that the existence of a fiduciary relationship would more easily enliven a claim for rectification. In any event, Taylor v Johnson provides no support to the suggestion that simple rejection of a proposal in negotiations enlivens equitable intervention. I am not satisfied that it can be said that Mr Islam’s conduct in the negotiations comes even remotely close to the description of conduct as a basis for equitable intervention whereby there is a deliberate setting out to ensure that the first party does not become aware of the existence of his mistake or misapprehension.
The implied term issue essentially is a contention that cl 7 of the Settlement Deed should be construed to so as to contain precisely the same implied term – that is, one having the language set out in in the ASC (relief 6(ii) and 8) (and what I have described otherwise as being Mr Amin’s proposed cl 7(b)).
Mr Castle SC contended that it was so obvious “as to go without saying” that payment of the Settlement Monies was to come from the profits of the 11 Woolgen project [666] .
He placed reliance on the doctrine in Stirling v Maitland (1864) 5 B & S 840; 122 ER 1043 (referenced in Netdeen Pty Ltd t/as GJ Gardner Homes v Lindfield Pty Ltd [2025] NSWCA 196 [667] ) per Cockburn CJ (at [851], 1047) that
I look on the law to be that, if a party enters into an arrangement which can only take effect by the continuance of a certain existing state of circumstances, there is an implied engagement on his part that he shall do nothing of his own motion to put an end to that state of circumstances, under which alone the arrangement can be operative.
an implied term to the effect that Mr Islam acknowledges, agrees and consents to the temporary withdrawal of charges when required by the Amin Parties for the purposes of allowing them to refinance or encumber the completion of the of the 11 Woolgen Contract and the 82 Woolgen Option (implied terms)? [and]
implied contractual duties to act in good faith, reasonably in for a proper purpose in respect of each other and/or the subject matter of the Settlement Deed; and a duty to cooperate to give Mr Alamin and each of the defendants the benefit of the Settlement Deed (implied contractual duties)?
The claim regarding an implied term can be shortly disposed of. To my mind on any view of the matter, the alleged implied term does not satisfy the BP Refinery v Hastings criteria. It is not required in order to bring business efficacy to the Deed, nor is it so obvious that it goes without saying.
I reject the claim that a duty of co-operation would lead to the result that Mr Islam was obliged to wait for payment until the acquisitions of 11 & 82 Woolgen had been completed or that he was obliged to withdraw his charges to allow refinancing to occur. As I have indicated earlier, what is implied by means of co-operation is defined by (or at least strongly influenced by) what has been promised under the contract in question, and not on some absolute obligation to look after the benefit of the other party. Having rejected the claimed rectification case, I do not consider that there is separately any aspect of the commercial context of the case that require the sort of co-operation alleged in the face of the rectified express terms of the contract.
Lastly, I am not satisfied that in the circumstances of this case there is some form of duty upon Mr Islam to act in good faith which obliged him to wait for payment until the acquisitions of 11 & 82 Woolgen had been completed or that he was obliged to withdraw his charges to allow refinancing to occur. Even if somehow some form of good faith duty might be contemplated, it does not seem to me that it could stand in the face of the rectified express terms of the contract which required payment of instalments by specific times, which were of the essence, and in circumstances where temporary withdrawal term which appears in cl 8(b) was rejected as a proposal for cl 7(b).
Mr Castle SC contended that the relationship between Mr Alamin and Mr Islam was bound by the JVA as pleaded and for a Varied JVA. I have made findings in respect of that above.
Mr Castle SC emphasised that a joint venture can exist in relation to a prospective project such as 11 Woolgen [671] and submitted that fiduciary duties were owed by the parties even though they had or have agreed to terminate their relationship, citing Chan v Zacharia [672] . On this basis he contended that the fiduciary duties “fill the gap in relation to what is to happen to” the presale monies in MH Woolgen’s bank account and “also fill the gap in terms of identifying the context within which they were negotiating the deed of settlement” [673] .
For something that was, on the Plaintiffs side, said to be so fundamental, the Settlement Deed is surprisingly silent on the relationship between the parties in respect of alleged JVA, JV terms and Varied JV.
The Settlement Deed does not use terminology of ‘joint venture’. The recitals do not refer to any such joint venture.
The initial recitals broadly speaking reference parties or entities, shareholding, and capacity for entering the Deed (recitals A-E).
The next set of recitals reference 11 Woolgen noting: its acquisition by Signature Homes (recital F); Mr Islam’s allegation that funds for the deposit had been sourced from the MH Group (recital G); and an acknowledgement that MH Woolgen received approximately $950,000 on account of presales of the subdivision lots (recital H).
The next set of recitals reference 82 Woolgen, noting: the 82 Woolgen Option (recital I), that some of the funds for the deposit for 82 Woolgen were sourced from Signature Homes on account of 11 Woolgen presales and that Mr Alamin alleged that those had since been repaid to Signature Homes (recital J).
The final recitals reference the proceedings and the fact that the parties had agreed to settle all matters in dispute between them on the terms of the Settlement Deed on a without prejudice and without admission basis (recitals K, L).
The operative terms of the Deed do not give any clear indication regarding what the parties had agreed or were going to do in respect of the alleged JVA, JV terms and Varied JV.
The following may be noted:
cl 2 and 3 envisaged that Mr Islam would be reappointed as a director of MH Affordable and issued two ordinary shares in it (cl 2, 3 - such that their shareholding in MH Affordable would be equal), and that Mr Islam was not to be appointed a director or given any shareholding in respect of Signature Homes/Amin Co regarding 11 Woolgen or Amin Murooj regarding of 82 Woolgen;
cl 12 provided a mechanism for Mr Islam to request information from the Amin Parties about progress and proposed future action in relation to “conveyance” and financing or attempt to secure financing of 11 & 82 Woolgen;
cl 13, which addressed pursuit of business opportunities, was phrased in terms which essentially permitted them to go their own way either solely or in partnership with other people but did not expressly address anything about the existing alleged JVA;
cl 14 addressed deadlock in respect of MH Affordable (but not in respect of any of the other companies);
cl 15 provided for releases between all the relevant entities and parties including in respect of payments made or received by loan or in respect of the sale of all or any part of 11 & 82 Woolgen (excepting out any loans internal to the MH Group, as between any member of that group and Mr Islam or Mr Alamin, or internal to the Amin Group); and
cl 16 involved dismissal of the 2021 proceedings.
In light of the above, it is certainly not self-evident from the express terms of the Settlement Deed that the purpose or the effect of it was to:
terminate the Joint Venture in respect of any future properties;
continue the Joint Venture in respect of existing JV Properties only; and
treat 11 & 82 Woolgen as if they were JV Properties.
Possibly, one might infer, having regard to cl 13, that the parties were to go their separate ways in respect of any further joint property developments, but there is no express terms setting out how existing property projects would be finalised.
More particularly, it is to my mind certainly not self-evident that the Settlement Deed either created a form of Varied JV or provided that 11 & 82 Woolgen were to be treated as if they were JV Properties.
It is not clear to me that Mr Castle SC actually asked me to make a finding that the JV had been varied as alleged. One of the difficulties with that is that whilst the general business model or methodology of property development was explained, there was no attempt to set up what the precise terms of the joint venture were. However, even assuming it is right to describe the legal relationship is between Mr Alamin and Mr Islam as a joint venture, and I am prepared to accept that such a joint venture was impacted by the Settlement Deed, and that it seems unlikely that Mr Alamin and Mr Islam would continue to develop properties through the MH Group, it is not clearly established on the balance of probabilities that the Settlement Deed terminated the alleged JV in respect of any future properties and continues the Joint Venture in respect of existing JV Properties only. If I am wrong in that in the Settlement Deed did terminate the JV the lack of clarity of the exact terms on which the termination was to occur makes a finding about so-called termination somewhat inutile.
Leaving aside for the moment precision about the content of particular fiduciary obligations, I accept a type of joint venture existed between Mr Alamin and Mr Islam and related entities but only in respect of certain projects through the MH Group (the first five projects that proceeded) and that it did not include 11 & 82 Woolgen.
In any event, I am not satisfied that there was an agreement (whether a varied JVA or JV term or otherwise) to treat 11 & 82 Woolgen as if they were JV Properties.
26 The second alternative formulation of Alamin’s claim is in equity, to enforce Islam’s fiduciary duties owed to Alamin as his joint venturer, as an alternative basis for claiming in the injunction in ASOC prayer 1(i): see ASOC [24(b)(i)].
27 The claim brought by Islam in proceedings before Parker J sought to restrain Alamin from making a profit in breach of his fiduciary duties from the development of 11 and 82 Woolgen. Yet, that is what Islam seeks to do by claiming that Alamin ought pay him the sum of $3.5m under the Settlement Deed, in circumstances where the 11 Woolgen development did not proceed because of Islam’s conduct that prevented a refinancing required to purchase those properties from proceeding. Islam ought not be permitted from making a profit from his own breach of fiduciary duties owed to Alamin.
28 The appropriate remedy in these circumstances is an injunction in the terms of ASOC prayer 1(i).
Mr Elliott SC, submitted that [677] :
there was no agreed JV for the development of 11 & 82 Woolgen;
the contentions regarding those developments was addressed in the Settlement Deed by creation of a debt obligation in favour of Mr Islam with the constructive trust contention being released; and
the debt and security rights do not self-evidently give rise to fiduciary obligations.
I have addressed above some basic findings regarding the JV and alleged Varied JV and the Settlement Deed.
It seems to me that, in relation to the first five projects (which proceeded), there was a fiduciary relationship as between Mr Alamin and Mr Islam.
The alleged fiduciary duties in relation to the JV between them according to the ASC [678] and replicated in the list of agreed issues are
a. a duty to act, at all times, in good faith, in the best interests of each other, for a proper purpose (good faith);
b. a duty not to obtain or use an improper advantage or profit or to act in a position of conflict (non-profit and non-conflict);
c. a duty to cooperate and contribute, at all times, to the successful operation of the Joint Venture between them, including by making agreed financial and nonfinancial contributions to its success (cooperate and contribute); and
d. a duty, at all times, not to use any position, right or power to cause damage or harm to the other (non-harm).
As outlined earlier Mr Islam admitted in like language that both gentlemen had the first, second and fourth set of duties (good faith, non-profit, non-conflict and non-detriment) in respect of the MH Group [679] . Mr Islam denied a duty to cooperate and contribute including by making agreed financial and non-financial contributions to its success [680] .
This is not the occasion to delve deeply into the proscriptive/prescriptive dichotomy, at least because Mr Castle SC did not go there in his submissions and (understandably) nor did Mr Elliott SC in replying to Mr Castle SC’s submissions.
Joint venturers may agree as between themselves to cooperate and contribute financially and non-financially in certain ways to a project. Their ‘duty’ in that regard arises from contract. However, apart from agreement or contract, the notion that fiduciaries have an active duty to cooperate and contribute was not underpinned by Mr Castle SC by reference to particular case law.
It is to my mind insufficient for the plaintiffs simply to assert generalised forms of duties as has been pleaded and outlined above, without tying the content and scope of the duties closely to the facts of the case.
Caselaw (as outlined above) shows that, conceptually, fiduciary relationships and separately fiduciary duties, can arise in relation to prospective projects. The cases which admit of those propositions are generally cases where the projects involved have been the subject of discussion or express contemplation as between the fiduciary parties.
Mr Castle SC’s reference to Chan v Zacharia provides only a very basic starting point for contemplating how a duty might arise as between Mr Alamin and Mr Islam in the context of the Settlement Deed.
However, if it be supposed that the dealings between Mr Alamin and Mr Islam in relation to the 5 projects where those contended for by Mr Castle SC, it does not follow that those duties had necessarily application in the context of the negotiation of the Settlement Deed.
Conceptually, it might be that there are circumstances in which joint venturers or one or more of them may be bound by obligations in relation to properties that have not been discussed or contemplated between them. Clearly, it is arguable that one joint venturer (A) who used property from one project to fund another project which had not been the subject of any particular discussion with the other joint venturer (B), has breached an obligation to not gain an advantage for himself. However, it is far from clear to me that if the other joint venturer (B) is initially unaware of the acquisition of the particular property by A, outside any scope of an agreed project, that B is somehow obliged to cooperate and contribute to A securing that project for himself.
It seems to me that Mr Elliott SC’s submissions are correct. In particular, there was no agreed JV for the development of 11 & 82 Woolgen and the contentions regarding those developments were addressed in the Settlement Deed by creation of a debt obligation in favour of Mr Islam with the constructive trust contention being released.
Specifically, on the facts of this case, I am unsatisfied, in the context of the 2021 proceedings and the dispute over the acquisition of 11 & 82 Woolgen, that Mr Islam had was a duty to cooperate and contribute to the successful acquisition by Mr Alamin or the Alamin parties of 11 & 82 Woolgen by the means pleaded in the claims for rectification of the Settlement Deed, specifically by: (a) suppressing his interests and not insisting upon timely payment of instalments until Mr Alamin had acquired 11 & 82 Woolgen; and (b) being obliged to postpone his charge to allow Mr Alamin to obtain financing.
Further, to the extent that it is asserted that there were some duty on the part of Mr Islam to act in the best interests of Mr Alamin to enable him to obtain the benefit of the acquisition of 11 & 82 Woolgen, I reject that notion. It would be a different matter if the acquisition of those properties were an agreed project as between them, or even if the acquisition of those properties was the matter of particular discussion with them even if they had not worked out a specific arrangement between them regarding those properties. However, on any view of this case, Mr Islam had not in any way, shape or form embarked upon mutual discussions with Mr Alamin as to the acquisition of 11 & 82 Woolgen, let alone agreed for those properties to be JV Properties as between them.
Lastly, whilst Mr Alamin had pleaded that Mr Islam was under a fiduciary duty not to obtain or use an improper advantage or profit or to act in a position of conflict in relation to the JV between them, I cannot see how on any view of the matter such a duty extended to 11 & 82 Woolgen.
As a result of Islam’s conduct, Alamin has lost deposits or prepayments paid in respect of 11 Woolgen, Shariah compliant Finance Rent and fees, and also incurred legal costs in proceedings that have not been reimbursed by means of cost orders. The amount of the direct losses in respect of 11 Woolgen ought not be the subject of any dispute, if liability is established. The quantification of additional costs is a matter that can be referred to a referee for determination. Both of these heads of damage can, in any event, be matters to be taken into account in determining any buy-out order if made ...
Mr Elliott SC submitted that the breach claim failed at a number of levels.
First, Signature Homes (now Amin Co), the party said to have suffered the loss, is not a plaintiff [682] .
Secondly, the claim failed at an evidentiary level, with there being no satisfactory basis in the evidence for a finding that Mr Islam’s decision not to withdraw his charge caused the loss of the purchase of 11 Woolgen and, in any event, the evidence demonstrates that 82 Woolgen was able to be purchased without the release of any charges held by Mr Islam [683] .
My findings regarding the JV terms issue and the Fiduciary duties issue essentially foreclose the need to address breach.
However, less there be any doubt about it, it can hardly be said that Mr Islam’s stance in insisting on timely and strict compliance with the payment by Mr Alamin of instalments under the Settlement Deed, declining to lift his charge and resisting Mr Alamin’s rectification claim in relation to 11 & 82 Woolgen could be said to be a breach of any of the alleged fiduciary duties.
Mr Castle SC submitted in opening [685] and finally [686] that failure of Mr Islam to advise Mr Alamin of his alleged intention in relation to the Settlement Amount instalments being payable irrespective of whether or not Mr Alamin proceeded with the development of 11 & 82 Woolgen constituted misleading and deceptive conduct.
Specifically, he submitted that Mr Islam’s assertion that the omission of Mr Alamin’s proposed cl 7(b) from the 1.38pm version was intentional, enlivened s 18 ACL liability. He contended that the failure (omission) of McCabes to draw to the attention of Mr Alamin and his advisers some positive indication that it had been intentionally removed [687] amounted for the purposes of s 18 ACL to conduct that led or was likely to lead into error when in all the circumstances there was a reasonable expectation to speak (or alert) of intentional rejection, citing Care A2 Plus Pty Ltd v Pichardo [2024] NSWCA 35 (Care A2 Plus) [688] .
Mr Castle SC contended that [689]
22… the relevant principles include: a. whether conduct is misleading and deceptive must be considered in light of the nature of the parties, the character of the transaction contemplated and the circumstances in which the conduct occurred: Butcher v Lachlan Elder Realty Pty Ltd (2004) 218 CLR 592 at [39]-[40]; b. the test is objective: Care A2 Plus Pty Ltd v Pichardo [2024] NSWCA 35 at [100]; c. failure to speak (or ‘silence’) can be misleading or deceptive where the circumstances reveal a reasonable expectation that a party would disclose a relevant matter to the other party: Care A2 at [102]-[105].
23 The difference between the rectification case and the ACL case is that the focus of the ACL case is on the conduct of Islam and his solicitor, in particular a solicitor who had formerly acted for the joint venture. As a joint venturer, Alamin had an objectively reasonable expectation that Islam would tell him of an intention that the $3.5m sum would be payable irrespective of the development of 11 and 82 Woolgen.
24 The same might be said of Islam’s solicitor, who by acting for one party of the joint venture against another party, would create a heightened expectation that he would ensure that he did not create a conflict by allowing Alamin to sign a Deed without confirming to Alamin that the terms allowed Islam to seek payment of the $3.5m sum irrespective of the development of 11 and 82 Woolgen.
25 In terms of remedies for misleading and deceptive conduct, the issue for the Court is what remedy will best relieve Alamin of the misleading and deceptive conduct. Two 7 alternatives are claimed in the ASOC: a. Prayer 1(i) – an injunction against seeking payment under ACL ss. 232, 243; b. Prayer 6 – an order for variation of the Deed of Settlement under ACL s.243.
It seems to me that the proper understanding of what occurred is that Mr Alamin’s proposed cl 7(b) advanced by Mr Alamin’s legal representatives was simply rejected.
I have carefully considered the statement of legal principles of Bell CJ regarding silence in s 18 ACL cases in Care A2 Plus. There is no evidence of what if anything was stated between the negotiating parties between 12.47pm and 1.38pm. If one assumes that it is the case that nothing overt was said about the deletion or omission of Mr Alamin’s proposed cl 7(b) from the 1.38pm version, I remain unconvinced that in the context of the settlement negotiations in this matter that there was objectively (or otherwise) some “reasonable expectation” that the omission would be drawn to the attention of Mr Alamin and his legal representatives.
Even assuming there was such an obligation, I accept Mr Elliott SC’s submission that there is no sensible evidentiary basis on which I can assess any loss that has occurred.
10 Alamin’s contention is that a buy-out is the preferrable option as it will result in the least inconvenience and impact to third parties, being community members who have acquired an interest in their individual lots under the ‘off the plan’ instalment arrangements entered into with the joint venture companies (ASOC [27]).
…
30 The Court has a general jurisdiction in equity to wind up associations on the just and equitable basis, which is sufficiently broad to include joint ventures: *Re Led Company’s Workmen’*s Fund Society [1904] 2 Ch 196. That jurisdiction enlivens the Court’s powers under s.90 of the Civil Procedure Act 2005 to make such orders as the nature of the case requires.
31 The plaintiff also invokes s.461(k) of the Corporations Act 2001 to seek a just and equitable winding up of the companies that form part of the joint venture: ASOC prayer 4, [25].
32 It is well established that the just and equitable power to order a winding up may be exercised when a relationship has broken down between the parties, particularly where they are effectively partners: Ebrahimi v Westbourne Galleries Ltd [1973] AC 360.
33 Under the Corporations Act, s.467(4), the Court has an alternative remedy to a winding up order, on the just and equitable ground, if some other remedy is available as a reasonable alternative. The remedy of a buy-out by Alamin of Islam’s interest in the joint venture is available here, and is sought in SOC prayer 2. By analogy the same relief ought be available under s.90 of the Civil Procedure Act in respect of the equitable jurisdiction.
34 In order to facilitate that buy-out, a valuation of Islam’s interest ought be undertaken, which will require an account to be taken, including in relation to the damages which have been suffered by Alamin and his companies by and as a result of Islam’s conduct in relation to the 11 and 82 Woolgen properties, and his insistence on payment of the $3.5m. These are matters that raise many permutations and possibilities that will be more effectively addressed orally.
Mr Elliott SC submits that winding up is not relief that Mr Alamin has ever wanted, and/or now wants and, when questioned about it, Mr Alamin constantly deflected by saying he would “prefer” a buyout [694] . Indeed, Mr Elliott SC said that, self-evidently, the winding-up claim is a stalking horse and pretext for a buyout [695] , which buyout cannot occur unless the court is first satisfied that a winding-up order would otherwise be made either as a matter of power or appropriateness. In any event, Mr Alamin has not demonstrated that he has the financial means to purchase Mr Islam’s interests [696] .
Further, Mr Elliott SC submits that in any event: (a) there is a paucity of material to enable the court to make any fully informed decision about winding up [697] ; (b) to the extent that there is evidence, the evidence suggests that the projects are either completed or so close to completion makes no sense for a liquidator to be appointed [698] ; (c) the practical impact of the breakdown is not so significant that it materially frustrates the commercial viability and operations of the company [699] ; (d) Mr Alamin in cross-examination expressly admitted that he has been able to put aside his differences with Mr Islam in order to ensure that they can together, through the companies, deliver the MH Group projects [700] ; and (e) the claim has been released [701] .
Practically speaking one may well doubt whether any of the parties, but in this case more particularly Mr Alamin, wishes to have a winding up order made.
It was certainly not the case when the 2021 proceedings came to trial. Indeed, the comments made by Parker J concerning the prospect of a winding up seem to have been the catalyst for the parties engaging in settlement discussions which led to the execution of the Settlement Deed.
The issue has been raised and it is necessary for me to deal with it.
For his part, Mr Alamin acknowledged in cross-examination that the Fourth Avenue Project had progressed to a point where it was nearly complete [704] , the Angle Vale project has proceeded to a point where it is completed such that all that is required is to calculate the profit and make distributions accordingly [705] .
Mr Castle SC addressed the state of completion of the five projects which proceeded. I have outlined this above. In summary he contended that the:
Fourth Avenue Project has three unsold lots and is awaiting sewer connection;
Gurner Avenue Project has 13 lots (or perhaps more) remaining to be sold;
Boyd Street Project has been sold and an amount of funds generated from presale of lots remains in the court’s trust account;
Harris Street Project is complete and awaiting final distribution of profit; and
Dickson Road Project has two to three lots remaining to sold and is awaiting council rezoning so that a development application can be submitted.
Mr Elliott SC’s summary of the position was not materially different. He contended that only the Gurner Avenue Project the Dickson Road Project were ongoing.
Mr Elliott SC cross-examined Mr Islam regarding the development of the Gurner Avenue Project. An offer had been made for the provision of finance by La Trobe Finance on terms that will involve each of Mr Alamin and Mr Islam being guarantors [706] . There was no suggestion that whatever lack of trust there might be between the parties that they could not cooperate to ensure that project was completed, particularly with the assistance of an accounts manager, Mr Mirag, who seemingly acts as a go-between for Mr Alamin and Mr Islam [707] . Mr Castle SC’s cross examination of Mr Islam regarding this property did not suggest that there is any significant impediment to the parties completing this project.
In response to questioning, Mr Islam confirmed that the sale of the rest of the Gurner Avenue lots would generate significant revenue and, after taking off expenses at the end of the project, the profit would be worked out and split between him and Mr Alamin [708] .
There was little cross-examination by Mr Castle SC of Mr Islam regarding the work needed to be completed in relation to the Dickson Road Project [709] .
Clearly Mr Islam had issues regarding trusting Mr Alamin. Mr Islam had rejected the notion that Mr Alamin could be left to his own devices to complete the work required in relation to those properties [710] . However, on one view of his then evidence [711] and later evidence he intimated that he could work together with Mr Alamin to finish the uncompleted existing projects [712] .
Mr Elliott SC submitted that in relation to the Gurner Avenue Project (MH Affordable) and the Dickson Road Project (MH Dickson) the plaintiffs had not demonstrated that there was deadlock between the directors and owners even on a single decision to be made let alone on an issue of such consequences to materially frustrates the commercial viability and operations of the companies [713] . I accept this submission.
I remain unpersuaded that any winding up order is justified. Even if it were the case that technically the basis for a winding up order was enlivened, I would not, as matters currently stand, as a matter of discretion order a winding up. Mr Castle SC emphasised the inconvenience and impact to the Islamic community particularly regarding members who have acquired interests in lots under the ‘off the plan’ instalment arrangements entered into with the JV companies [714] .
Further, I am not satisfied that it is appropriate to order any form of buyout remedy. Mr Castle SC relied upon the alpine of principles of Nixon J in WAM Active*.* Nixon J referenced a decision of Austin J in Tomanovic, where at [43] Austin J noted that the Court has an extremely broad discretion with respect to relief. Nixon J further extracted [715] part of Austin J’s judgment (at [44]-[46]) touching upon the buyout remedy [716]
Although a compulsory buy-out is often ordered, the granting of such relief is properly subject to the broader principle that the Court will seek to craft orders which are the least intrusive to the management of the affairs of the company, consistent with the termination of the oppression: Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd (1998) 28 ACSR 688 at 742 per Young J; [1998] NSWSC 413; *John J Starr (Real Estate) Pty Ltd v Robert R Andrew (A’*asia) Pty Ltd (1991) 6 ACSR 63. Consequently, a compulsory buy-out should not be ordered, if less drastic remedies are consistent with the termination of oppression. Further, there will ordinarily be no occasion for a buy-out, if the oppression has otherwise been brought to an end: Campbell v Backoffice Investments Pty Ltd (2008) 66 ACSR 359 per Giles JA at [123]; [2008] NSWCA 95; see also Young CJ in Eq at [382]; Campbell v Backoffice Investments Pty Ltd (2009) 238 CLR 304 at [182]; [2009] HCA 25.
With respect to orders for the regulation of the future conduct of the company, orders that have been made include an order requiring investigation of various transactions in relation to moneys expended*: Parker v NRMA* (1993) 11 ACSR 370; RE Spargos Mining NL (1990) 3 ACSR 1 at 50.
Winding up is to be regarded as a remedy of last resort, and one which ought not be granted if some other less drastic form of relief is available and appropriate: Re Dalkeith Investments Pty Ltd (1984) 9 ACLR 247 at 252; Fexuto v Bosnjak Holdings Pty Ltd (1998) 28 ACSR 688 at 742; [1998] NSWSC 413; Short v Crawley (No 3) [2007] NSWSC 1322 at [1222] per White J; Holt v Burnside & Hollen Australia Pty Ltd [2009] VSC 95 at [78]-[81] per Robson J.
I am far from satisfied that a buyout remedy is appropriate. The principal claim in this case related to the Settlement Deed. In accordance with the findings I have made there is no basis for rectification of the Settlement Deed. I have dealt with what needs to be attended to in relation to arrangements between the gentlemen in respect of the remaining projects.
Apart from Mr Castle SC emphasising to me that a buyout remedy was preferable from Mr Alamin’s perspective no detailed evidence was adduced nor detailed submissions made, as to how a buyout remedy might impact each of the gentlemen or to otherwise inform the ground of relief.
Mr Elliott SC contended that Mr Alamin and APGM must provide Mr Islam with a stamped and executed mortgage in registerable form over 82 Woolgen, as security for the payment of the moneys payable pursuant to the judgment of this Court (including as to costs) [717] .
This followed as an out working of performance of the promise on the part of the Amin Parties in cl 7 of the Settlement Deed to execute all documents necessary to register or record such charge. In DS3 he contended that the terms should be in the form of mortgage memorandum dealing number Q860000 [718] . In oral submissions Mr Elliott SC pressed for that relief [719] .
Little was said by Mr Castle SC regarding that relief. I accept that broadly speaking Mr Castle SC opposed the relief. However, other than mentioning the claim for relief in the context of contending for a form of buyout order [720] , I did not really detect any reasoned argument as to why that relief should not be granted.
It seems to me that on a plain construction of the Settlement Deed the Amin parties have clearly charged their interest in 82 Woolgen and that they agreed to execute documents necessary to register or record such charge. That relief should be given.
In conclusion, I reject the claims for relief sought by the plaintiff.
I find that there should be judgement in favour of the cross-claimants for the payment of the Settlement Amount in accordance with cl 4 of the Settlement Deed together with pre-judgement interest. Details of the interest will need to be calculated, as recognised by Mr Elliott SC [721] .
(a) In the event of any default by the Amin Parties, the Amin Parties shall pay Islam all costs incurred by Islam in the enforcement of this Deed on the full indemnity basis, and agree to indemnify Mr Islam in respect of such costs.
(b) The amount payable under subclause 10(a) is secured by the charge in clause 7 above
Mr Castle SC did not make a submission against indemnity costs in the event that I rejected his submissions regarding the plaintiff’s claims for relief. Certainly he did not contended that the terms of cl 10 of the Settlement Deed did not have the effect that Mr Elliott SC contended for.
It seems to me that the relief sought on the cross-claim including indemnity costs, and a declaration that it is secured by the charges and cl 7 of the Settlement Deed [724] is appropriate.
I direct the parties to bring in short minutes of order to give effect to these reasons for judgment.
**********
Dolls In Dolls, “Layers of a Legend” (web page) < https://dollsindolls.com.au/matryoshka-doll-history-meaning-dolls-in-doll > accessed 9 September 2026. See also The University of Kansas, Centre for Russian, East European & Eurasian Studies, “Matryoshka/Матрёшка” (web page) < https://crees.ku.edu/matryoshka > accessed 9 September 2026. But see other possible origins raised in the article by Elena Kostomarova, "More Than Just a Pretty Face: The Secrets of the Russian Matryoshka," Russia Beyond the Headlines, August 2015 (web page) < www.rbth.com/arts/2015/08/08/the\_secrets\_of\_the\_russian\_matryoshka\_48375.html > pages 3-5.
Oxford English Dictionary, online ed, (Matryoshka (n.) Etymology) July 2023.
Elena Kostomarova, "More Than Just a Pretty Face: The Secrets of the Russian Matryoshka," Russia Beyond the Headlines, August 2015 (web page) < www.rbth.com/arts/2015/08/08/the\_secrets\_of\_the\_russian\_matryoshka\_48375.html > accessed 9 September 2026, page 2.
Oxford English Dictionary, online ed, (Matryoshka) July 2023; Dolls In Dolls, “Layers of a Legend” (web page) < https://dollsindolls.com.au/matryoshka-doll-history-meaning-dolls-in-doll > accessed 9 September 2026; The University of Kansas, Centre for Russian, East European & Eurasian Studies, “Matryoshka/Матрёшка” (web page) < https://crees.ku.edu/matryoshka. > accessed 9 September 2026.
T 2.3-.8, T 4.31-.42; T 18.5-.11; T 30.21-.22; T 33.31-.33; T 36.50; T 44.29-.34. Counsel's terminology at times slipped into use of ‘Babushka dolls’ (see T 18, 30, 33) - the expression conveying the meaning of grandmother or elderly woman: see Oxford English Dictionary, online ed, (Babushka (n.)) September 2024.
Newey v Westpac Banking Corporation [2014] NSWCA 319 (Newey) at [175] (per Gleeson JA).
T 319.40-.49.
P7 814-839; CB4/5248- 5273.
PS1 [17]-[19]; PS3 [Fourth Point]; T 28.20-.21; T 292.43-.46, 307.19-.22, 362.22-363.10, 364.7-.33.
See the interview with Bill Moyers in 1988: Bill Moyers, A World of Ideas (Interview, 17 November 1989) transcript accessible here: https://billmoyers.com/content/peter-drucker/.
Ibid, and also Macquarie Dictionary, online ed, (Gestalt) 2026.
Macquarie Dictionary, online ed, (Gestalt) 2026.
Ibid.
Ibid.
Ibid.
George Mather, ‘Foundations of Sensation and Perception’ (3rd Ed Psychology Press 2016) (Mather 3rd Ed) page 39; George Mather, ‘Foundations of Sensation and Perception’ (4th Ed Psychology Press 2023) (Mather 4th Ed) page 44.
Principally see Mather 3rd Ed at 304-306 (see also Mather 4th Ed at 261).
Mark Twain, The Adventures of Huckleberry Finn (Penguin 2009), at the prefacing notice “Persons attempting to find a motive in this narrative will be prosecuted; persons attempting to find a moral in it will be banished; persons attempting to find a plot in it will be shot. BY ORDER OF THE AUTHOR per G.G., CHIEF OF ORDNANCE”.
See Robert James Waller, The Bridges of Madison County (Penguin 2021), page 39 - Robert Kincaid's life philosophy, recalled to mind as he contemplated a sensual experience invoked by Francesca taking off her boots (having returned to the Johnson House after Francesca had travelled with him shown him the way to Roseman Bridge).
Terence Patrick Murphy, ‘Gestalt Patterns in the Novel: The Case of the Opening Chapter or Two in Jane Austen’ (2026) 40(8) Textual Practice 1121, 1121 (Taylor & Francis Online) (Murphy) at 1123.
Nicholas Dames, The Chapter: A Segmented History from Antiquity to the Twenty-First Century (Princeton UP 2024) page 17 (cited by Murphy at 1121).
Phillip Stevick, ‘The Theory of Literary Chapters’ in Phillip Stevick Ed. The Theory of the Novel (New York: The Free Press, 1967) pages 172-174 (cited by Murphy at 1122).
Murphy at 1122-1123. Jane Austen, Sense and Sensibility (Ed. Ros Ballaster) (Penguin Classics 2014); Jane Austen, Persuasion (Ed. Gillian Beer) (Penguin Classics 2015); Jane Austen, Pride and Prejudice (Ed. James Kinsley) (Oxford Modern Classics 2008); George Eliot, Middlemarch, A Study of Provincial Life (New York: Penguin Books 2015).
Murphy at 1122.
Ibid at 1122-1123.
Ibid at 1123.
Roger Match and Piotr Smietana, ‘11 Gestalt Principles of Design: A visual guide for design teams’ 18 January 2025 (Match and Smietana), < https://www.superside.com/blog/gestalt-principles-of-design >. Kareem Mohamed and Fatos Adiloglu ‘Analyzing the Role of Gestalt Elements and Design Principles in Logo and Branding’ (2023) International Journal of Communication and Media Science 10(2), 33; See also Figma, “What are the Gestalt Principles?” (web page) < https://www.figma.com/resource-library/gestalt-principles/ > accessed 9 September 2026 (Figma).
Macquarie Dictionary, online ed, (aha moment) 2026; Figma.
See e.g. WWF Australia, < https://wwf.org.au/ > accessed September 2026.
See e.g. The Paul McCartney Project, “The “Abbey Road” photo session” (web page) < https://www.the-paulmccartney-project.com/1969/08/photo-shoot-of-the-abbey-road-cover/ > last updated 14 May 2025.
See Figma.
W. H. Ittelson, ‘Visual Space Perception’ (Springer Publishing Company, 1969) LOCCCN 60-15818.
See Match and Smietana.
Ibid; See e.g. Microsoft Ignite, ‘Floppy Disc Dave Icon’ < https://learn.microsoft.com/en-us/answers/questions/4867658/floppy-disc-save-icon > last updated 22 March 2015.
Jiayang Ma, ‘A Study on Perceptual Design of Hierarchical Graphic Information in Interfaces Based on Gestalt Principles’ (2025) Applied Science 15(21), article 11327, page 4.
See Figma.
See generally at [273]-[304], and specifically at [281] (per Campbell JA).
Ryledar at [281] (per Campbell JA).
The Adoption of Edmund (a pseudonym) [2024] NSWSC 803 at [35]-[54].
Franklins Pty Ltd v Metcash Trading Ltd (2009) 76 NSWLR 603; [2009] NSWCA 407 (Franklins) at [451] (per Campbell JA) citing various authorities including Pukallus v Cameron (1982) 180 CLR 447 at 452 (Pukallus v Cameron) (per Wilson J) and Australian Gypsum Ltd v Hume Steel Ltd (1930) 45 CLR 54 (Australian Gypsum) at 64 (per Rich, Starke and Dixon JJ). See also T 333.5-.11; DS3 [48(a)] citing Newey at [170] (per Gleeson JA); Maralinga Pty Ltd v Major Enterprises Pty Ltd (1973) 128 CLR 336 (Maralinga v Major Enterprises) at 349 (per Mason J); Igloo Homes Pty Ltd v Sammut Constructions Pty Ltd [2005] NSWCA 280 (per Ipp JA, with whom Santow JA agreed).
Ryledar at [306]-[308] (per Campbell JA).
Ryledar at [310]-[311] (per Campbell JA).
Simic v New South Wales Land and Housing Corporation (2016) 260 CLR 85; [2016] HCA 47 (Simic) at [104] (per Gageler, Nettle and Gordon JJ (joint judgment)), citing Bishopsgate Insurance Australia Ltd v Commonwealth Engineering (NSW) Pty Ltd [1981] 1 NSWLR 429 at 431 (per Yeldham J); Bush v National Australia Bank Ltd (1992) 35 NSWLR 390 (Bush) at 405-406 (per Hodgson J).
Simic at [104] (joint judgment) citing Bush at 405-406 (per Hodgson JA). DS3 [48(b)].
Ryledar at [305] (per Campbell JA).
Leaving aside the possibility of some surgeons and chess players being merely onlookers of an event.
Mike Klein, “The Top 10 World Championship Matches in History”, Chess.com (web page) < https://www.chess.com/article/view/fischer-vs-spassky-world-chess-championship-1972 > accessed 9 September 2026.
Walter Trevis, The Queen’s Gambit (Random House 1983).
T 4.31-.42; T 33.31-.33.
T 286.15-.24.
T 33.50.
T 34.49-.35.42.
Specifically 265A, 286A, 286B, 287A, 1298A, 1299A.
PS5 [6].
PS5 page 3.
T 294.18-.33; T 317.21.
CB 4/2295.
CB 3/27[7].
CB 3/27[8].
CB 3/28[10]-[13].
CB 3/28[16].
CB 3/28[17].
CB 3/29[18].
CB 3/29[19].
CB 3/29[20].
See e.g. P7 1388; PS4 [5] citing T 184.14-.18.
P7 69[11]; CB 3/3[11]; CB3 32[27].
MFI-3 56[13].
CB 3/33[36].
These reasons use the spelling most frequently used by the parties, although the alternate spelling “Sharia Law” was also used at times.
P7 14; CB 1/14.
Initially, on 22 February 2021 Amin Co was incorporated as MA Homes Pty Ltd, on around 11 March 2021 its name was changed to MA Signature Homes Pty Ltd and then changed to Amin Homes Hadiqat Woolgen Pty Ltd on around 25 January 2023: CB 159[15a]; CB 73[285].
CB 3/3[9].
Francis Joseph Steingass, The Students Arabic-English Dictionary (W.H. Allen 1884) 968.
CB 4/7074 (Amin Hadiqat); CB 4/7067 (Amin Mahmiat); CB 167 (Islam affidavit 19 May 2023 [33]).
PS4 [3]; T 198.10-.15.
CB 3/2-3[7].
P7 1387-1388.
CB 3/148[125]; 3/158[6].
CB 3/158[7].
DS3 [4]-[6].
P6 (annexure B).
P6 (cl 6.1).
P6 (cl 8.2).
P6 (cls 2.1, 2.2).
P6 (cl 2.3).
P6 (cl 2.4).
PS4 [4] citing T 211.14-.20; P7 70[16]-[20].
P7 70[16]-[20].
T 319.45-.46.
T320.44-321.10.
P6 (cls 4(b), 10.1).
T 317.46-.49.
P6 (cl 16.4).
T 320.31-.42.
D1 61[35].
In Mr Alamin’s affidavit the Dickson Road property is described as being the sixth project in a context in which he identified a so-called fifth project at Logan Reserve in Brisbane which did not proceed: P7 447[35]-[36].
During the hearing, it was mostly referred to simply as 11 Woolgen.
During the hearing, it was mostly referred to simply as 82 Woolgen.
P7 169[469]-170[483].
CB 4/1103-1105.
P7 141[297].
DS3 [9(a),(b)], T 327.23-.42; CB 4/2317.
CB 4/2329, 4/2786.
Mr Elliott SC at T 323.18-.22.
DS3 [9(a),(b)]; T 327.23-.42; CB 4/2787.
CB 4/3300-3306.
Settlement Statement dated 15 February 2023; CB 4/5391-5392.
T 321.24-324.38 (The documents regarding the $463,700 sum were in the Court Book. The documents regarding the $820,000 sum were not in the Court book and others not).
T 323.35-.37 (see also CB4 5391 and 6607 where the figure is said to be $1,283,700).
PS4 [63]; Ex P3.
PS4 [63]; P7 1421.
PS4 [63].
T 324.40-.43.
T 321.46-.48, T 327.5-.23.
CB 4/2025-2027 and ff.
P7 147; CB 3/81[319].
Title search P7 1421 (11 Woolgen).
P7 170; CB 3/104[483].
P7 170; CB 3/104[483]; Title search P7 1361 (82 Woolgen).
PS4 [29].
D1 12[12(a)].
DS3 [9].
Settlement Deed recitals I & J; DS3 [10].
PS4 [34] citing P7 156[383].
CB 3/167 (Islam affidavit 19 May 2023 [33]).
P7 2.
Alamin v Islam [2023] NSWSC 701 at [3] (per Slattery J).
PS1 [5a]; DS3 [40]. (See also transcript of pre-trial directions (as described by Mr Elliott SC and agreed by Mr Kheir) T 1.34-.38; T 2.24-.26.
DS1 [30], [33], [38(a),(e)]; DS3 [45]; PS1 [5b].
PS4 [67].
PS4 [68]; Amin PG v Mr Islam 2023/217577; Amin Hadiqat v Mr Islam 2023/217579 and Amin Murooj v Mr Islam 2023/217580; In the matter of Amin Property Group Pty Ltd; In the matter of Amin Homes Hadiqat Woolgen Pty Ltd; In the matter of Amin Homes Murooj Woolgen Pty Ltd [2023] NSWSC 1591, Williams J - 15 December 2023 (Williams J judgment or WJ).
See Summons.
DS3 [20].
P7 822-823 (CB4/5256-5257).
No formal appearance was filed for the second to fifth cross-defendants. However, a Defence to First Cross-Claim was filed by Origin Lawyers on behalf of all cross-defendants, and the hearing proceeded on the basis that they were jointly represented by Mr Castle SC.
T 1.27-.45; T 285.28-.45; T 286.7-.9.
T 294.18-.33.
T 317.24-.33.
T 325.27-326.7.
T 285.
T 286.4-.5.
DS3 [3], [39].
DS3 [56].
P7 9-11 (ASOC), 56-57(AXC).
P7 3.
D1 56-57[15]-[18].
D1 56-57[19]; P7 101[44].
PS4 [1] citing T 150.3-.31.
P7 39-40[8].
P7 14[8]-15[10], 39[8]-40[10]. PS4 [6].
P7 15[11], 40-41[11].
P7 16[12], 41[12].
DS3 [98]-[99].
D1 48[81]-49[82].
D1 48[82(b)].
D1 49-50.
D1 51[93] (final paragraph of the points of defence of the first to fourth defendants).
P7 13[7]-16[12].
P7 16[13]-18[14].
P7 18[15]-19[18].
P7 42[15]-44[17].
P7 19[19]-20[20].
P7 20[21]-21[22].
P7 46[20f].
P7 46[20c-e].
P7 46[21]-[22].
DS2.
T 2, 23, 29, 51.
T 3.11-.16.
T 53.8-.28, 54.45-.48.
T 63.42-64.36.
PS1 [11].
T 315.40-.316.19.
T 2.12-.18.
T 58.19-.45.
PS1 [12]; Pharmacy Platform Pty Ltd v Millichamp [2025] NSWCA 213 at [44]-[47] (per McHugh JA, Kirk JA and Price AJA agreeing).
See Grant v John Grant & Sons Pty Ltd (1954) 91 CLR 112; [1954] HCA 23 at 123-124 (per Dixon CJ, Fullagar, Kitto and Taylor JJ).
Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 (Mount Bruce) at [46]-[52] (French CJ, Nettle and Gordon JJ) (footnotes omitted).
Sanmik Food Pvt Ltd v Alfa Laval Australia Pty Ltd [2025] NSWCA 7 (Sanmik) at [152] (per Griffiths AJA) citing Mount Bruce at [46]-[49].
Donau Pty Ltd v ASC AWD Shipbuilder Pty Ltd (2019) 101 NSWLR 679; [2019] NSWCA 185 at [58] (per Bell P, Basten JA at [154] relevantly agreeing).
Sanmik at [55] (per Adamson JA), [155] (per Griffiths AJA).
PS1 [14]; PS2 [3]; T 287-.291.
PS1 [15]; PS2 [5]. Special leave to appeal to the High Court from the decision in Ryledar was refused: Ryledar Pty Ltd v Euphoric Pty Ltd [2007] HCATrans 698 (Hayne and Crennan JJ).
PS2 [4]; T 290-.291; Jenyns v Public Curator (Qld) (1953) 90 CLR 113; [1953] HCA 2.
PS2 [4]; T 291.25-.292.9.
At [273]-[304].
At [281].
Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) v Personnel Contracting Pty Ltd (2022) 275 CLR 165; [2022] HCA 1 at [177] (per Gordon J); Commissioner of Taxation v PepsiCo Inc [2025] HCA 30; (2025) 424 ALR 294 at [183] (per Gordon, Edelman, Steward and Gleeson JJ); T 296-.297.
Stormriders Pty Ltd v Copperart Pty Ltd [2004] NSWSC 809 (Stormriders) (per White J); citing New South Wales Medical Defence Union Limited v Transport Industries Insurance Company Limited (1986) 6 NSWLR 740 (NSW MDU) at 752 (per Clarke J); T 297-298.
NSW MDU at 752C-D (per Clarke J).
Ibid.
NSW MDU per Clarke J at 752E-F.
Stormriders at [48] (per White J).
Redenbach v Norris Bros Pty Ltd [2025] NSWSC 765 at [30].
M Leeming ‘The Limits of rectification’ (2023) 17 J Eq 122 (Leeming – rectification) at 134. See also PS2 [4], T 292.10-.40.
Seymour Whyte Constructions Pty Ltd v Ostwald Bros Pty Ltd (in liquidation) (2019) 99 NSWLR 317; [2019] NSWCA 11 (Seymour) at [6] (per Leeming JA, Payne and White JJA agreeing at [44] and [45] respectively); Leeming – rectification at 124.
Maralinga v Major Enterprises at 350 (per Mason J); Simic at [103] (joint judgment).
Leeming – rectification at 124.
Seymour at [15] (per Leeming JA).
Leeming – rectification at 125-126.
Leeming – rectification at 126-128.
Franklins Pty Ltd v Metcash Trading Ltd (2009) 76 NSWLR 603; [2009] NSWCA 407 (Franklins) at [444] (per Campbell JA).
Leeming – rectification at 128.
Leeming – rectification at 128; citing e.g. Franklins at [539] (per Campbell JA).
Leeming – rectification at 129.
See Civil Procedure Act 2005 (NSW) s 56(1).
Alcan Australia Ltd v Geraghty (Supreme Court (NSW), Young J, 8 October 1993, BC9302153, unrep) at 2-3.
Leeming – rectification at 129-130.
Simic (joint judgment) at [103].
Simic (joint judgment) at [104]; citing Bishopsgate Insurance Australia Ltd v Commonwealth Engineering (NSW) Pty Ltd [1981] 1 NSWLR 429 at 431 (per Yeldham J); Bush v National Australia Bank Ltd (1992) 35 NSWLR 390 (Bush) at 405-406 (per Hodgson J).
Simic at [104] (joint judgment); citing Bush at 405-406. DS3 [48(b)].
Simic at [103], [104], [109] (joint judgment).
Simic at [42] (per Kiefel J).
Simic at [12] (per French CJ); [42], [48] (per Kiefel J); [103], [104], [109], [117] (joint judgment).
Simic at [44]-[45] (per Kiefel J); referencing Pukallus v Cameron at 452.
Simic at [42]-[43] (per Kiefel J); DS3 [48(b)&(c)]; T 133.15-.335.10.
Simic at [103] (per Gageler, Nettle and Gordon JJ); Newey at [171] (per Gleeson JA); WJ [93].
Ryledar at [278] (per Campbell JA).
Franklins at [451] citing various authorities including Pukallus v Cameron at 452 (per Wilson J) and Australian Gypsum at 64 (per Rich, Starke and Dixon JJ). See also T 333.5-.11; DS3 [48(a)] citing Newey at [170] (per Gleeson JA); Maralinga v Major Enterprises at 349 (per Mason J); Igloo Homes (per Ipp JA, with whom Santow JA agreed).
Public Trustee v Smith [2008] NSWSC 397 at [71] (per White J) citing Bush (per Hodgson J) at 407F; Muriti v Prendergast [2005] NSWSC 281 at [137] (per White J).
IDP 971 Richmond Pty Ltd v Xerri [2026] NSWCA 89 (IDP 971 Richmond) at [38] (per Bell CJ, Mitchelmore JA at [61] and McHugh JA at [62] agreeing).
Franklins at [446] (per Campbel JA).
Franklins at [450] (per Campbell JA).
Ryledar at [305] (per Campbell JA).
Ibid at [306]-[308] (per Campbell JA).
Joseph Story, Commentaries on Equity Jurisprudence as Administered in England and America, ed Melville M Bigelow (Little, Brown, and Company, 13th ed, 1886). at 168-169, [154]-[155].
Ibid at [310]; and in context [309]-[310].
Ryledar at [315]-[316] (per Campbell JA).
DS3 [50].
Franklins at [459] (per Campbell JA).
IDP 971 Richmond at [38] (per Bell CJ).
Denis S K Ong, Ong on Equity (2011, Federation Press) at 46 citing Estate Realties Ltd v Wignall [1991] 3 NZLR 482 at 492 (per Tipping J).
Oxford English Dictionary, online ed, (Fiduciary (n.) Etymology) June 2026.
Hospital Products at 96-97 (per Mason J).
JD Heydon, MJ Leeming and PG Turner, Meagher, Gummow & Lehane’s Equity: Doctrine & Remedies (5th ed, 2015, LexisNexis Butterworth).
MGL at [5-005].
Denis Ong, Trusts Law in Australia (5th ed, 2018, Federation Press) at 48.
Anderson v Canaccord Genuity Financial Ltd (2023) 113 NSWLR 151; [2023] NSWCA 294 (Anderson) at [149] (per Gleeson, Leeming and White JJA).
A matter particularly emphasised in Anderson at [126], [127], [146] and especially at [152]-[166] (per Gleeson, Leeming and White JJA).
Beach Petroleum NL v Kennedy (1999) 48 NSWLR 1; [1999] NSWCA 408 at 45 (per Spigelman CJ, Sheller and Stein JA).
Hospital Products at 102 (per Mason J).
Anderson at [146] (per Gleeson, Leeming and White JJA).
See e.g. Xiao v BCEG International (Australia) Pty Ltd (2023) 111 NSWLR 132; [2023] NSWCA 48 (Xiao) at 156 [111] (per Gleeson JA, Mitchelmore JA at [163] and Griffiths AJA at [164] agreeing).
Ibid.
MGL at [5-380].
Breen v Williams (1996) 186 CLR 71 at 93-94 (per Dawson and Toohey JJ); at 113 (per Gaudron and McHugh JJ).
Justice Fabian Gleeson, ‘Proscriptive and prescriptive duties: is the distinction helpful and sustainable, and if so, what are the practical consequences?’, Supreme Court Corporate and Commercial Law Conference, 15 November 2017 (Gleeson Paper) at 1.
Pilmer v Duke Group Limited (in liq) (2001) 207 CLR 165 at 197-198 (per McHugh, Gummow, Hayne and Callinan JJ).
Friend v Brooker (2009) 239 CLR 129; [2009] HCA 21 at 157 [74] (per McHugh, Gummow, Hayne and Callinan JJ).
Howard v Federal Commissioner of Taxation (2013) 253 CLR 83; [2014] HCA 21 at 98-99 [31]-[32] (per French CJ and Keane J) and 106 [56] (per Hayne J and Crennan J).
For example, describing the obligation of counsel not to be in a position of conflict either between counsel’s own interests and the duty owed to their client or between the duty owed to their client and a duty owed to another person (including another client): see e.g. Farrugia v The King [2026] HCA 28 at [41] (per Gageler CJ, Gordon, Steward, Gleeson and Beech-Jones JJ); citing Breen v Williams (1996) 186 CLR 71 at 93, 113, 135; Naaman v Jaken Properties Australia Pty Ltd (2025) 281 CLR 635; [2025] HCA 1 (Naaman – HC) at 664 [81] (per Gordon, Edelman and Steward JJ); R v Neil [2002] 3 SCR 631 at 643-644 [16] (per Binnie J). See also Naaman – HC at 649 [31] (per Gageler CJ, Gleeson, Jagot and Beech-Jones JJ).
Gleeson Paper at 1[3].
See e.g. Lionel Smith, ‘Prescriptive Fiduciary Duties’ (2018) 37 University of Queensland Law Journal 262.
J D Heydon, M J Leeming and P G Turner, Meagher, Gummow & Lehane’s Equity: Doctrines and Remedies (5th ed, 2014, LexisNexis) (MGL) at [5-380]-[5-385].
Gleeson Paper at 2[4].
MGL at [5-415]-[5-420]; Gleeson Paper at 2-3[7].
Ibid.
United Dominions Corp Ltd v Brian Pty Ltd (1985) 157 CLR 1; [1985] HCA 49 (UDC) at 10 (per Mason, Brennan and Deane JJ).
UDC at 10.
Ibid at 10-11.
UDC at 10.
UDC at 11.
UDC at 12-13.
UDC at 12; See also Anderson at [116] (per Gleeson, Leeming and White JJA); Botanical Water Technologies IP Ltd v Driver [2025] NSWCA 162 at [48] (per Payne JA, Ward P at [1] and Adamson JA at [105] agreeing).
UDC at 13;
Chan v Zacharia (1984) 154 CLR 178; [1984] HCA 36.
Ibid at 186 (per Brennan J).
Ibid at 179.
Ibid at 186-187 (per Deane J).
Ibid at 182 (per Gibbs CJ).
Ibid at 184 (per Gibbs CJ).
Ibid at 185 (per Murphy J).
Ibid at 195 (per Deane J).
Ibid.
Ibid 195-197 (per Deane J).
Ibid at 197 (per Deane J).
Ibid at 186 (per Murphy J).
Ibid.
Ibid at 206 (Dawson J).
Stellar Vision Operations Pty Ltd v Hills Health Solutions Pty Ltd [2023] NSWCA 102 (Stellar) at [99] (per Bell CJ, Hammerschlag CJ in Eq and Adamson JA) (cited by Mr Castle SC at T 310.39-.48; PS2 [7]).
Engadine Medical Imaging Services Pty Ltd atf The Engadine Unit Trust v Mena Ibrahim & Ors [2025] NSWCA 269 (Engadine) at [100] (per Black J, Payne JA at [1] and Stern JA at [2] agreeing).
Engadine at [100] (per Black J); citing Southern Real Estate Pty Ltd v Dellow (2003) 87 SASR 1; [2003] SASC 318.
Engadine at [100] (per Black J).
Care A2 Plus Pty Ltd v Pichardo [2024] NSWCA 35 (Care A2 Plus) at [100] (per Bell CJ, Stern JA at [203] and Basten AJA at [204] agreeing); citing, inter alia, Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 149 CLR 191; [1982] HCA 44 at 198 (Gibbs CJ).
Care A2 Plus at [104]-[105] (per Bell CJ).
PS2 [8]; T 315.10-.18.
PS2 [9], T 315.20-.26.
Leibler v Air New Zealand Ltd [No 2] [1999] 1 VR 1 [1999] 1 VR 1 (Leibler) at [60] (per Kenny JA).
PS2 [9].
Seddon, Nick, and Bigwood, Rick, Cheshire & Fifoot Law of Contract (LexisNexis Australia, online at September 2026) (Cheshire & Fifoot) at [10.36].
Cheshire & Fifoot at [10.37] citing Byrne v Australian Airlines Ltd (1995) 185 CLR 410 (Byrne) at 422 (per Brennan CJ, Dawson and Toohey JJ); [1995] HCA 24; Realestate.com.au Pty Ltd v Hardingham (2022) 277 CLR 115 (Realestate.com.au) at [16] (per Kiefel CJ and Gageler J); [2022] HCA 39.
Carpenter v Morris (2023) 111 NSWLR 603; [2023] NSWCA 154 at [80] (per White JA, Bell CJ at [1] and Simpson AJ at [97] agreeing) citing Byrne at 422.
Cheshire & Fifoot at [10.38].
Cheshire & Fifoot at [10.38] fn 1; citing, inter alia, Commonwealth Bank of Australia v Barker (2014) 253 CLR 169; [2014] HCA 32 at [24]-[25] (per French CJ, Bell and Keane JJ).
Cheshire & Fifoot at [10.38] (footnotes omitted).
Cheshire & Fifoot at [10.37].
Cheshire & Fifoot at [10.37], [10.49].
Cheshire & Fifoot at [10.41].
Cheshire & Fifoot at [10.41].
Cheshire & Fifoot at [10.41], citing Famestock Pty Ltd v The Body Corporate for No 9 Port Douglas Road [2013] QCA 354 at [15] (per Douglas J, de Jersey CJ at [1] and Frazer JA at [2] agreeing).
Cheshire & Fifoot at [10.42].
Cheshire & Fifoot at [10.42].
Cheshire & Fifoot at [10.42] citing Australis Media Holdings Pty Ltd v Telstra Corp Ltd (1998) 43 NSWLR 104 at 124D-E (per Mason P, Beazley and Stein JJA).
Cheshire & Fifoot at [10.43] citing Alcatel Australia Ltd v Scarcella (1998) 44 NSWLR 349 at 369B (per Sheller JA, Powell and Beazley JJA at 370C agreeing).
Cheshire & Fifoot at [10.43] citing Burger King Corp v Hungry Jack’s Pty Ltd (2001) 69 NSWLR 558; [2001] NSWCA 187 (Burger King) at [146]-[165] (per Sheller, Beazley and Stein JJA); Vodafone Pacific Ltd v MI Ltd [2004] NSWCA 15 (Vodaphone) at [188]–[190] (per Giles JA, Sheller JA at [1] and Ipp JA at [342] agreeing).
Burger King at [167] (per Sheller, Beazley and Stein JJA).
Vodaphone at [188], [198] (per Giles JA).
Vodaphone at [192]-[193] (per Giles JA).
Cheshire & Fifoot at [10.44].
Cheshire & Fifoot at [10.45].
Cheshire & Fifoot at [10.45] citing South Sydney District Rugby League Football Club Ltd v News Ltd (2000) 177 ALR 611; [2000] FCA 1541 at [432]–[434] (per Finn J) (reversed on other grounds in South Sydney District Rugby League Football Club Ltd v News Ltd (2001) 111 FCR 456; [2001] FCA 862); Russell v The Trustees of the Roman Catholic Church for the Archdiocese of Sydney [2007] NSWSC 104 at [112] (per Rothman J); CGU Workers Compensation (NSW) Ltd v Garcia (2007) 69 NSWLR 680; [2007] NSWCA 193 at 693 [60] (per Mason P).
T 316.21-.43.
Evidence Act 1995 (NSW) (Evidence Act) ss 55-56.
Evidence Act s 136.
Leeming – rectification at 135.
McNamara v R (2023) 280 CLR 201; [2023] HCA 36 at 225 [67] (per Gageler CJ, Gleeson and Jagot JJ).
Leeming – rectification at 135-136.
Jenyns at 118-119 (per Dixon CJ, McTiernan and Kitto JJ).
Kronenberg v Macaulay [2025] NSWCA 195 at [197] (per Leeming JA, Mitchelmore JA at [239] and Free JA at [240] agreeing).
Evidence Act s 140(1).
Evidence Act s 140(2).
Leeming – rectification at 137, referencing Evidence Act ss 9, 140(2)(a), and citing Franklins at [458]–[460]; Rawack v Spicer [2002] NSWSC 849 at [30]–[31] (per Campbell J).
Affidavits affirmed: 11 May 2023 P7 67, CB 3/1; 22 May 2023 P7 78, CB 3/12; 19 February 2024 P7 92, CB 3/26; 19 August 2024 P7 182, CB 3/116, and 13 February 2025 P7 197, CB 3/131.
Affidavits affirmed: 19 May 2023 P7 221, CB 3/155; 5 March 2024 P7 241, CB 3/175 and 8 July 2024 P7 253, CB 3/187.
See MFI-4 and MFI-6.
MFI-4 T 56.1.
MFI-6 T 79.5.
Fox v Percy (2003) 214 CLR 118; [2003] HCA 22 at [30]-[31] (per Gleeson CJ, Gummow and Kirby JJ).
ET-China.com International Holdings Ltd v Cheung [2021] NSWCA 24; (2021) 388 ALR 128 at [25], [28] (per Bell P).
Whittorn v Siu [2026] NSWSC 666 at [102].
DS3 [56].
DS3 [124].
T 312.6-.17.
T 312.23-.312.26.
T 158.
P7 442[14], 443[16]; T 312.23-.313.3.
T 317.1-.19.
P7 99[34], 102[49], 107[74], 107[78].
DS3 [58].
PS5 [2]-[5].
Obviously intended to be a refence to 17 November 2022.
PS5 [4], also PS5 page 10
PS5 [3].
DS4 [1].
DS4 [2].
DS4 [4].
See Mills v Dodds [2025] NSWSC 396 at [122]-[124].
West v Mead [2003] NSWSC 161; (2003) 13 BPR 24,431 (West v Mead) at [98] (per Campbell J).
see e.g. Fairfax Media Publications Pty Ltd v Gayle; The Age Company Pty Ltd v Gayle; The Federal Capital Press of Australia Pty Ltd v Gayle (2019) 100 NSWLR 155; [2019] NSWCA 172 (Gayle) at [117] (per Leeming JA, Bell P at [1] and Gleeson JA at [4] agreeing), citing J D Heydon, Cross on Evidence (11th ed, 2017, LexisNexis Butterworths) at [17445].
Gayle at [123]-[128] (per Leeming JA), clarifying comments of the Court of Appeal in Oneflare Pty Ltd v Chernih [2017] NSWCA 195 at [40] (per Meagher JA).
DS4 page 3.
T 78.18-.22.
T 30.4-.6.
T 286.14-.24.
T 326.21-.24.
DS4 page 5.
Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8.
DS3 [47]; T 332.46-.333.1.
T 122.12-.123.9.
T 340.24-.27.
DS3 [61].
T 340.11-.12.
PS5 at 9 (regarding DS [118]).
T 175.40-.176.7.
T 176.34-.177.7.
T 280.5-.281.35.
PS4 [3]; CB 4/6908-6911.
P7 69[12]; PS4 [2].
P7 68-69[7].
PS4 [7]; T 150.26-.31.
T 140.3-.141.29, T 146.19-.33.
PS4 [8], [10]; T 149.29-.46, T 150.33-.43, T 151.5-.49.
T 313.3-.6.
PS4 [9], T 143.13-.29; T 146.19-.33.
PS4 [11].
P7 610[159].
T 153.4-.44.
Ex D1 59[33].
P7 70[14]-[15].
P7 70[16]-[20].
PS4 [13]; P7 454-455[63]-[66].
CB 3/57-58[171]-[172].
PS4 [12].
P7 16[13], 41[13].
P7 122[163]-[169].
T 171.9-.30.
PS4 [13]; P7 454-455[68]-[69].
PS4 [14]; P7 139[288], 270.
PS4 [15]; P7 265ACB 4/2329, 4/2786.
Ex D1 70[74].
PS4 [21] citing P7 457[78], T 206.15-.18.
PS4 [22].
T 223.14-.18.
T 223.20-.22.
PS4 [23]; T 206.20-.23; P7 460[94].
Ex D1 71[80].
Ex D1 71[80].
CB 3/77[298].
D1 75[102].
PS4 [16] citing T 195.20-.32; P7 276, D1 76-77[106]-[110].
PS4 [15]; P7 286B.
PS4 [17]; P7 277.
PS4 [18] citing T 208.38-.49.
PS4 [19] citing T 209.1-.35.
T 209.42-.44.
PS4 [20] citing T 197.33-.49, 198.1-.19.
D1 76-77[106]-[110]; CB3/79 [303].
D1 80[129].
Ex D1 81[131].
PS4 [24] T 252.37-.39. (Presale amounts included $23,000 from Asfand Khan on 2 June 2021, $100,000 from Mina Orya on 23 June 2021 and another $2,050 from Minya Orya on 30 June 2021: CB 4/1437-1439).
PS4 [25] citing P7 481[223]-[227] and T 253.4-.45.
P7 482[228].
T 253.47-.49.
D1 82[138]-[142].
PS4 [26] citing P7 145[303], 287A.
P7 286, 287A.
D1 83[148]; CB4/1943.
Ex D1 84[152].
Ex D1 84[155].
Ex D1 86[163].
Ex D1 86[161].
Ex D1 96[227]-[231].
Ex D1 88[173]-[194].
CB 3/74[291].
P7 72[30].
P7 [316].
PS4 [27]-[28] (see P7 147[317]-[318]).
Ex D1 99-100[245]-[249].
CB 3/81[318].
CB 4/2471.
CB 4/3657.
CB 4/3660.
T 117.38-.39.
P7 73[34].
PS4 [30].
P7 626-627; CB 4/5078-5079.
P7 628-629; CB 4/5080-5081.
P7 628; CB 4/5080.
PS4 [31].
P7 631-632.
P7 633-635.
P7 255[13].
PS4 [32] citing T 223.20.
PS4 [33] (c T 226.27).
P7 635.
PS4 [35]; P7 640-641, 650, 656.
PS4 [35]; P7 645-646, 648-652, 658-659.
P7 642.
P7 655.
P7 646.
P7 650.
P7 651-652.
P7 657, 660.
PS4 [36]; P7 661-662; P7 157[386].
PS4 [37]; P7 157[387]; T 229.31-.34; P7 663-670.
P7 157[389].
P7 256[17].
P7 157-162[390]-[417].
The word "not" appears to be missing. The tenor of the sentence is that Mr Alamin did not want Hamidul back as a director.
P7 256[19].
P7 664-670.
P7 663.
PS4 [38] citing T 231.20.
PS4 [39] citing T 232.40; P7 631, 664.
PS4 [40] citing T 233.11.
PS4 [41] citing T 222.24-.43.
T 222.24-.43.
T 232.47-233.15.
P7 256[22], 671-691.
P7 256[23], 672-691.
P7 162-164[419]-[429].
P7 258[38].
P7 714-737.
PS4 [42] citing T 235.26, P7 714, 716.
PS4 [43] P7 714.
PS4 [43] citing T 238.7-.24, P7 714.
T 238.1-.33.
P7 257[25].
P7 257[26].
P7 257[27], 738-762.
PS4 [44] citing T 240.20-.34, P7 738, 750.
PS4 [45] (P7 257[27], 763).
PS4 [45].
P7 257[28].
P7 257[29], 764-788; CB 4/5198-5222.
PS4 [47] citing T 241.30-.35, P7 764-788.
PS4 [46] citing P7 764.
P7 724-725 (9.22am) and 773-774 (1.38pm).
PS4 [48] (citing T 242.22. cf T 275.1-50- T276.29).
T 242.22-.26.
T 275-.276.
P7 164[430]-[431].
PS4 [49]; P7 257[30], 789-813.
P7 716-737 (9.22am); 741-762 (12.47pm); 765-788 (1.38pm); 790-813 (2.54pm).
T 313.8-.314.23, 314.44-.315.13.
T 314.44-.315.12.
T 344.18-.35, 345.30-.38.
DS3 [81] citing T.241.40-.44 and 242.26; T 346.31-.347.39.
T 346.14-.34.
T 361.29-.42.
P7 257[30], 814-839.
PS4 [50] citing P7 20, 789, 790, 814.
P7 74[44]-[46].
P7 164-166[433]-[442].
P7 259[39].
P7 259[39].
P 258[35].
P7 258[36]-[37].
P7 171[485]-[487].
PS4 [51] citing T187.49; cf T252-253.
T 187.49-.188.6.
T 324.43-.325.16; CB 4/5347.
PS4 [52] citing P7 99, 166, 841; T 255.34.
P7 159[399], 160[408] (affidavit affirmed 19 February 2024).
P7 166[444]-[446] (affidavit affirmed 19 February 2024).
PS4 [53] citing T 244.27-.30; P7 166.
PS4 [54] citing P7 166; T 245.7 cf 246.5-.25.
PS4 [56] citing P7 867.
PS4 [55] citing P7 871.
Ibid.
PS4 [57] citing P7 1202.
CB 3/101[451] (seemingly intended to be 22 December 2022).
PS4 [58] citing P7 1203.
PS4 [59] citing P7 1208.
PS4 [65] citing P7 1217-1218.
PS4 [60]-[61].
PS4 [61] citing P7 1220.
PS4 [62] citing T 269.1.
PS4 [67] citing T 5.16-.22.
PS4 [65] citing P7 1217-1218.
PS4 [64].
CB4 5391 and 6607.
T 298.47-.299.7.
PS4 [69]; P7 147[319]-[320].
P7 170[480]-[482]; T 61.28-.29.
P7 171[484] the evidence is a little confusing as in context Mr Alamin was referencing the purchase of 82 Woolgen not 11 Woolgen).
P7 227[18].
PS4 [70] citing T175.27-.26 (sic),162.8-.27, 163.4-.46 (see also T 162.50-.163.2).
PS4 [71] citing T175.28-.30, 163.49-.50, 164.1-.49, 165.1-.16.
T 164.20-.40, 175.28-.30.
PS4 [72] citing T175.36-.38, 165.32-.36.
PS4 [74] citing T175.40-.44. T166.27-.50. T167.1-.24 T136.30-.45.
PS4 [73] citing T175.32-.34. T165.38-.50. T166.1-.25.
T 40.31-.34; DS3 [43].
T 358.5-.41; P7 159[399], 160[408]166[444]-[446] (affidavit affirmed 19 February 2024).
T 358.41-359.1; P7 147[319], (affidavit affirmed 19 February 2024).
PS4 [48] (citing T 242.22. cf T 275.1-.50 - T276.29).
PS1 [13].
P7 14[9]-19[18].
P7 20[20a].
PS4 50; PS1 [17].
T 307.32-.36.
T 313.41-.50.
T 308.35-.49.
T 301.15-.19.
T 299.26-.48 referencing T 269-.270 (or more broadly T 269.46-.273.27).
T 301.25-.43.
T 299.50-.301.10; T 300.1-.15 citing XE T 270.44-271.3.
PS1 [16].
PS1 [17]; T 297.41-.43; P7 166[446]; T 302.26-.29.
T 305.1-.5.
PS1 [17].
PS1 [18].
T 298.16-.35; CB 4/5394; T 304.26-.29.
PS1 [18].
T 298.47-.299.24.
PS1 [19]; T 362.22-.363.10.
T 303.5-.25.
T 333.5-.13.
DS3 [44]-[46].
DS3 [47].
DS3 [20].
Ibid.
DS3 [40]-[44]; T 332.24-.33.
T 6.2-.5.
T 40.31-.34.
DS3 [45]; T 332.35-.40.
DS3 [46].
T 332.42-.46.
DS3 [47]; T 332.46-.333.1.
DS3 [50].
DS3 [51].
DS3 [52]; T 336.42-.47.
DS3 [53(h)].
The following points were spoken to by Mr Elliott SC at T 336.47-.338.43.
DS3 [53(a)] citing T100.6-.15.
DS3 [53(c)] citing T.101.1-.2, 122.12-.18.
DS3 [53(b)] citing T102-103, 117.46, 122, 252.
DS3 [53(e)] citing T 117.46-.50, 122.21-123.25; DS3 [59].
DS3 [53(d)] citing T 115.12-.14.
DS3 [53(f)] citing P7 84[27].
DS3 [53(g)] citing T 107.16-.114.9.
DS3 [53(g)] citing T 114.2-.9.
DS3 [53(g)] citing T 126.11-.37; DS3 [55].
DS3 [57]; T 338.45-.339.1.
DS3 [58]-[60]; T 339.3-.34.
DS3 [61]-[62(a)-(e)]; T 339.34-.340.46.
DS3 [64], [73]-[75].
DS3 [64] citing P7 73[36]-[40].
DS3 [65], [68]], [90]; T 341.3-.50 (including referencing the transfer of shares at D2 pages 22-23), T 342.32-.35, T 348.22-.32, 349.5-.22.
DS3 [70] citing P7 84[27]; T 342.35-.44.
DS3 [71]; T 342.44-.343.18.
DS3 [72].
T 342.48-.343.11.
DS3 [66]-[67]; T 341.50-.342.32.
DS3 [53(g)] citing inter alia T114.2-.9; DS3 [78]-[79], [84]-[89]; T 343.48-344.7; T 348.4-.37.
DS3 [80].
T 325.34-.37, 326.7-.19.
T 326.14-.19; DS3 [7]-[11].
T 326.21-.24.
DS3 [9(d),(e)]; T 327.44-.328.4.
DS3 [9(e),(f)]; T 328.5-.14.
DS3 [9(f)].
T 328.32-.37.
DS3 [10]-[15], T 328.41-.329.19.
DS3 [16].
DS3 [16]; T 329.21-.330.13.
DS3 [17]-[18]; T 330.13-.25.
DS3 [21]; T 330.40-.46.
DS3 [21]; T 331.3-.12.
DS3 [28]-[32]; P7 171[484]; T 331.14-.30.
DS3 [51].
T 333.15-.335.28.
DS3 [51]; T 329.38-.46, 335.30-.36, 347.32-.39.
DS3 [54], [59].
T 362.47-.363.9.
T 363.22-.364.33.
T 355.46-.357.45 citing GWE v Commissioner of the Australian Federal Police (2020) 103 NSWLR 509; [2020] NSWCA 247.
T 359.3-.24.
T 359.29-.360.15.
T 107.28-.108.28.
T 109.9- 111.3; 112.3-.9.
T 109.15-.16.
T 109.50-.110.3.
T 111.1.1-.13; 112.8-.11.
T 112.29-.36; 113.49-.114.9
T 114.25-.28.
T 113.38-.42; 114.11-.25.
T 360.35-.361.1; P7 163[424]-[425].
T 361.46-.362.11.
Simic at [104] (joint judgment).
T 335.38-.336.33.
DS3 [40]-[44] and T 6.2-.5, 40.31-.34, 304.25-.305.5.
T 332.6-.22.
T 306.22-.307.9.
T 307.11-.22.
T 307.38-.43.
T 307.45-.308.22, 311.28-.34, 311.35-.45 citing XE T 282.15-.36.
T 308.3, 308.18-.20.
DS3 [53(g)] citing inter alia T114.2-.9.
T 305.33-.41.
T 309.20-.26.
T 308.35-.309.18.
T 277.48-.279.33.
T 279.4.
DS3 [53(d)].
T 301.45-.22.
T 186.29-.192.14.
T 190.14-.17.
T 361.3-.4.
P7 165[440] (affidavit affirmed 19 February 2024).
T 114.49-.115.30, 116.7.
PS1 [20], PS2 [6]; also T 49.25-.50.15, 315.10-.34.
T 315.13-.18.
T 311.17-.34.
PS2 [11]; Netdeen Pty Ltd t/as GJ Gardner Homes v Lindfield Pty Ltd [2025] NSWCA 196 at [69]-[71] (per Stern and Ball JJA, Griffiths AJA).
PS2 [11].
DS3 [92]-[97]; T 348.39-.349.2.
DS3 [102]-[103]; T 350.20-.43.
T 309.35-.37 citing UDC at 12-13. Mr Castle SC also cited Stellar at T 310.39-.48; PS2 [7].
Chan v Zacharia (1984) 154 CLR 178; [1984] HCA 36.
T 311.1-.8.
T 349.36-.350.21.
PS1 [2] citing ASC [8]-[9].
PS1 [26]-[28].
DS3 [98]-[101]; T 349.22-.35.
P7 15[10].
P7 14[8]-15[10], 39[8]-40[10]. PS4 [6].
Ibid.
PS1 [29].
DS3 [105].
DS3 [106]-[111]; T 350.45-.351.36.
DS3 [33]-[34].
PS1 [21].
T 311.35-.45 citing XE T 282.15-.36.
Such as "Our client rejects and we have intentionally removed it." (or presumably tracking/marking up).
PS2 [10]; T 314.18-.42.
PS1 [22]-[25].
DS3 [112]-[118]; T 351.36-.43.
T 323.35-.37 (see also CB4 5391 and 6607 where the figure is said to be $1,283,700).
T 298.47-.299.24.
PS1 [10], [31]-[34].
DS3 [119], [124] (citing T 91.45-.48, T 92.14-.16, T 92.35-.38, T92.43-.45); [127], [131]; T 352.4-.18.
DS3 [133]; T 353.4-.7.
DS3 [134]-[140]; T 353.7-.354.28.
DS3 [121]-[123], [126]; T 351.45-.352.2.
DS3 [120], [125(a)-(d)]; T 352.20-.25.
DS3 [125(e)] citing Tomanovic v Argyle HQ Pty Ltd; Tomanovic v Global Mortgage Equity Corporation Pty Ltd; Sayer v Tomanovic [2010] NSWSC 152 (Tomanovic) at [50] (per Austin J) and various transcript references; T 352.32-.36.
DS3 [125(e)(iii)] citing T 137.18-.22; T 352.36-.49.
DS3 [128]-[130], [139].
T 355.11-.20.
T 355.24-.36.
T 136.26-.28.
T 136.30-.36.
T 138.6-.34.
T 137.46-.138.4.
T 163.48-.165.16 (Reading context with and unaffected by the cross examination at T 175.23-.30).
T 175.23-.34.
T 175.41-.176.11.
T 176.11.
T 280.5-.281.1.
DS3 [125(d), (e)].
PS1 [10], T 355.6-.27.
WAM Active at [261] (per Nixon J).
Tomanovic at [44]-[46] (per Austin J).
DS3 [38].
DS3 [38].
T 331.38-.332.4.
T 355.24.
DS3 [34].
DS3 [35]-[37].
P7 823.
DS3 [35]-[38]; T 331.30-.332.4.
[2003] HCA 22
[2009] HCA 21
[2026] NSWSC 666
[2007] HCATrans 698
(1998) 44 NSWLR 349
(2023) 113 NSWLR 151
(1930) 45 CLR 54
(1998) 43 NSWLR 104
(1999) 48 NSWLR 1
(1977) 180 CLR 266
(1996) 186 CLR 71
(2001) 69 NSWLR 558
(1992) 35 NSWLR 390
(1995) 185 CLR 410
(2023) 111 NSWLR 603
(2007) 69 NSWLR 680
(1984) 154 CLR 178
(2025) 424 ALR 294
(2014) 253 CLR 169
(2022) 275 CLR 165
(2019) 101 NSWLR 679
(2021) 388 ALR 128
(2019) 100 NSWLR 155
(2003) 214 CLR 118
(2009) 76 NSWLR 603
(2009) 239 CLR 129
(1954) 91 CLR 112
(2020) 103 NSWLR 509
(2022) 276 CLR 170
(1984) 156 CLR 41
(2013) 253 CLR 83
(1953) 90 CLR 113
(1959) 101 CLR 298
(1973) 128 CLR 336
(2023) 280 CLR 201
(2015) 256 CLR 104
(2025) 281 CLR 635
(1986) 6 NSWLR 740
(1982) 149 CLR 191
(2001) 207 CLR 165
(1982) 180 CLR 447
(2022) 277 CLR 115
(1992) 26 NSWLR 234
(2007) 69 NSWLR 603
(2019) 99 NSWLR 317
(2016) 260 CLR 85
(2000) 177 ALR 611
(2001) 111 FCR 456
(2003) 87 SASR 1
(1983) 151 CLR 422
(1985) 157 CLR 1
(2023) 111 NSWLR 132
(1979) 144 CLR 596
(2010) 383 ALR 577
(2012) 44 WAR 1
(2009) 238 CLR 304
(1990) 1 Qd R 138
(1993) 10 WAR 459
(2004) 218 CLR 592