Great North Properties Pty Ltd v Anastasopoulos

Judgment 1HIS HONOUR : In these proceedings, the plaintiff seeks judgment against the first, second and third defendants in the sum of $770,000. It sues for that sum as an amount owing under a deed made between those parties on 27 July 2009. The litigation concerns a property development of two levels of a building in Clarence Street, Sydney. 2On 31 March 2004, the plaintiff, Great North Properties Pty Ltd ("GNP"), entered into an agreement with the third defendant, Jedda Projects Pty Ltd ("Jedda"), whereby it was agreed that GNP grant to Jedda a loan facility of $500,000. The agreement provided that interest would be payable on the loan at the rate of seven per cent per annum and that the loan was to be repayable by no later than 31 March 2006. GNP provided the sum of $500,000, which was used in the refurbishment of the development. 3On 27 July 2009, GNP, Jedda and the first defendant (Nick Anastasopoulos) and the second defendant (Chris Voukidis), entered into the deed on which the plaintiff sues. It contained the following recitals. "A. Nick and Chris are the only directors of each of Jedda and its ultimate holding company, Koombari Pty Ltd (ACN 094 015 782). B. On or about 31 March 2004, at the request of Nick and Chris, Great North provided $500,000 (the Loan) to Jedda to be used for a development project on levels 12 and 13 of 50 Clarence Street, Sydney. C. On or about 31 March 2004, Great North and Jedda entered into a document styled 'Loan Facility Agreement' in relation to the Loan and discussions ensued for several years thereafter between George Tsivis, the sole director of Great North (George) on behalf of Great North and Nick and Chris both personally and on behalf of Jedda. D. Each of Jedda, Nick and Chris acknowledge that Jedda has not complied with any of its obligations to Great North under the Loan Facility Agreement. E. Each of Nick and Chris further acknowledge that none of Jedda, Nick or Chris have complied with any of their respective obligations to Great North arising from the discussions between Nick and Chris on behalf of themselves and Jedda and George on behalf of Great North. F. In order to induce Great North not to enforce its rights against each of Jedda, Nick and Christ at this time, Nick and Chris have made the offer referred to below which has been accepted by Great North in accordance with the terms below. G. The said levels 12 and 13 of 50 Clarence Street, Sydney now comprise Lots 16, 17 and 18 in Strata Plan 71152 and are respectively known as Apartment 1201, Apartment 1202 and Apartment 1203, 50 Clarence Street, Sydney and are respectively owned by Perikles Giannopoulos, Konstadena Demetrios Laska (as nominee for Nick) and John Kolovos (as nominee for Chris)." 4Relevantly, it provided: " Now this Deed witnesses that the parties hereto mutually covenant as follows: Covenants by Nick and Chris :