Landcon Civil Pty Ltd (in liq) v Taleb

1. Pursuant to r 9.05 of the Federal Court Rules 2011 (Cth), Jamal Taleb be joined as the second defendant.
2. Pursuant to r 8.21(2) of the Rules, the plaintiffs be granted leave to file an Amended Originating Process in the form annexed and marked "A" to the Amended Interlocutory Application dated 6 October 2022.
3. The Amended Originating Process and a copy of these orders to be served on the first and second defendants by 20 October 2022.
4. The proceedings be listed for case management at 9:15am on Thursday, 17 November 2022. Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

CHEESEMAN J: 1 The substantive proceedings relate to an application made by the plaintiffs under pt 5.7B of the Corporations Act 2001 (Cth) seeking declarations and orders regarding insolvent trading by the defendant and unreasonable director related transactions by the defendant, Hamza Jamal Taleb. Hamza Jamal Taleb was formerly a director of the first plaintiff, Landcon Civil Pty Ltd (in liq) ACN 165 593 911. 2 By amended interlocutory application dated 6 October 2022, the plaintiffs seek to join Jamal Taleb as the second defendant on the basis that it will minimise time and costs in litigation for the following reasons: (a) documents obtained under subpoena demonstrate that Jamal Taleb appears to have obtained a benefit from Landcon as a result of transactions with Pickles Auctions Pty Limited (ACN 003 417 650) whereby Landcon appears to have paid monies to or on his behalf for the purpose of him acquiring certain assets at auction (Pickles Transactions); (b) the Pickles Transactions appear to be broadly within the same matrix of facts as the claims against Hamza Jamal Taleb in these proceedings; and (c) joinder of Jamal Taleb will avoid the Liquidator needing to commence separate proceedings against Jamal Taleb and in this way likely reduce time and cost in the litigation. 3 I am satisfied in these circumstances that it is appropriate to make an order under r 9.05 of the Federal Court Rules 2011 (Cth) joining Jamal Taleb as the second defendant. 4 Consequently upon joinder of Jamal Taleb, the plaintiffs also seek to amend the originating process to plead the claim against Jamal Taleb and also to amend the claim against Hamza Jamal Taleb. Hamza Jamal Taleb has to date taken no part in the proceedings. The plaintiffs have informed the Court that service of the originating process and an affidavit of William Anthony Honner sworn 28 February 2022 was effected personally upon Hamza Jamal Taleb on 26 July 2022. As at the date of the hearing of the joinder application, Hamza Jamal Taleb has not entered an address for service. 5 The amendments insofar as they relate to Hamza Jamal Taleb include the removal of certain claims that the plaintiffs no longer seek to press and the addition of a claim for breach of director's duty related in part to the Pickles Transactions. I am satisfied that it is appropriate in these circumstances to grant leave to the plaintiffs to file an amended originating process in the form annexed and marked "A" to the amended interlocutory application because it will minimise time and cost and avoid a multiplicity of proceedings. I certify that the preceding five (5) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Cheeseman.