KAI XIN PTY LTD t/as Kai Xin Family Trust v Shuliang Pty Ltd t/as Shuliang Family Trust

Judgment - Ex Tempore (Revised)

1. HER HONOUR: By notice of motion filed on 9 June 2021, the plaintiff seeks an order varying an interlocutory order that required it to provide security for the defendants' costs. It seeks this order on the basis that the circumstances have changed since the security for costs order was made last year.
2. In support of its application, the plaintiff relies on the affidavit of its solicitor, Shih-Yen Tu, affirmed 9 June 2021.
3. There was no appearance by the defendants at the hearing of the plaintiff's motion this morning. However, as there was evidence that the defendants had been given notice of the application by a letter dated 21 June 2021 sent by registered post to their most recent address, I was satisfied that it was appropriate to proceed with the application.
4. The background to the plaintiff's application is as follows.
5. These proceedings were commenced by the plaintiff in October 2019. In the Amended Statement of Claim filed on 20 December 2019, the plaintiff claims that the first defendant holds certain units in a unit trust (Shengji Group Unit Trust) on trust for the plaintiff and seeks orders that the first defendant account to it for distributions received and specifically perform a Deed for Transfer of Unit Shares dated 18 May 2017. The plaintiff also seeks to trace the proceeds of sale of real property held by the third defendant as trustee for various other trusts in which the fourth defendant, as trustee of the Shengji Group Unit Trust, has an interest.
6. On 26 February 2020, freezing orders were made against the defendants in an amount up to and including $2,790,155. Pursuant to those orders, the defendants were required to disclose certain information regarding their assets and the location of four properties within seven working days. The defendants did not comply with that disclosure order.
7. By orders made on 7 May 2020, the plaintiff was required to pay $60,000 into Court as security for the defendants' costs of the proceedings in two tranches of $30,000 each. Following a notice of motion filed by the defendants on 25 August 2020 seeking to dismiss the proceedings on the basis that the security had not been paid, the plaintiff paid the $60,000 into Court as security on or about 15 September 2020. The plaintiff was ordered to pay the defendants' costs of their motion, with those costs to be assessed and payable at the conclusion of the proceedings.