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[2019] VCAT 537
Victorian Civil and Administrative Tribunal
2019-04-11
Tang AM
Original judgment source is linked above.
Victorian Civil and Administrative Tribunal Act 1998, s 120 - Application for review of an order - Whether party applying for review had a reasonable excuse for not attending or being represented at hearing - Whether party applying for review has a reasonable case to argue
, - Whether 14 days' notice given - Requirement for service on rented premises - Application of
Tse v Kornucopia Pty Ltd (Residential Tenancies) [2019] VCAT 537
Ms L Xu, Director and (for part of hearing) Mr R Yew, in-house solicitor
There are many more letters said not to have been received and the circumstances are highly suspicious. No matter how lenient a view I take of the word "reasonable excuse" I cannot see that a party that behaves in this way and, as a result of such behaviour, becomes unaware of the hearing date has a reasonable excuse for not attending on the day fixed for the hearing.
Did Kornucopia have a reasonable excuse for not attending or being represented at the hearing on 28 February 2019?
consents to the electronic service of notices and other documents in accordance with the requirements of the Electronic Transactions (Victoria) Act 2000 at this email address:
While Mr Kuksal may not have chosen to read it, I do not consider this to be a reasonable excuse in circumstances where Kornucopia was put on notice of an impending hearing by reason of the agent sending a copy of the request for renewal to Kornucopia. I also reject the suggestion that the sending of the notice of hearing to the email address controlled by Mr Kuksal was not sufficient because he is not a director. In this regard, there is compelling evidence that Mr Kuksal continues to act as a shadow director of Kornucopia, including his appearance at the initial hearing on 21 January 2019, his involvement in instructing Madgwicks Lawyers to make the review application and the request for him to be granted permission to represent Kornucopia after giving his evidence.
One further matter adds to this conclusion. Mr Tse gave evidence that the night before the hearing, he received a call from Mr Kuksal[12] suggesting that Kornucopia would only address the rent arrears if Mr Tse granted Kornucopia a proxy to represent him at the body corporate meetings relating to 889 Collins Street. Mr Kuksal responded to this suggestion by saying that Mr Tse is a "known crook and dishonest", although he did not provide any evidence to support his accusations. He went on to admit that, while he did call Mr Tse, he only suggested that "there was no point in constant acrimony" and that the matters between them "should be resolved amicably". He could not recall if he had mentioned the proxy issue, but said he did not say that the rent would not be paid if the proxy was not forthcoming. I do not accept that Mr Kuksal's evidence on this point is credible, and consider that it reflects poorly on him as a witness. In this regard, I note that the material filed by the agents includes a letter from Madgwicks Lawyers dated 27 November 2018, which was already seeking Mr Tse's agreement to appoint their clients (defined as Kornucopia Pty Ltd, Avant-Garde Ventures Pty Ltd and their Director, Shivesh Kuksal) "on your behalf as the proxy holder for the Unit". The timing of the call, on the eve of the review hearing, makes it probable that a link was being drawn by Mr Kuksal between the proxy issue and the rent arrears.
I also reject Mr Kuksal's attempt to characterise his role as a shareholder looking after its own interests. Rather, the level of personal involvement by Mr Kuksal in the day to day affairs of Kornucopia provide strong evidence that he continued to represent the company throughout the relevant period and it is reasonable for others to have relied on that.
Does Kornucopia have a reasonable case to argue?
[2] [2005] VCAT 1297 [33] and [34].
[3] [2005] VCAT 1297 [27].
[4] [2005] VCAT 1297 [30].
[5] E Nekvapil, Pizer's Annotated VCAT Act (6th Ed, Thomson Reuters, 2017) [VCAT.120.105].
[7] Dwyer v Housing Industry Association Ltd [2009] VCAT 411 [20]-[25].
[8] This is based on the evidence given by Mr Kuksal at the hearing. He said that Ms Xu would attend to guests seeking to check in and out in the living room of the apartment.
[9] At the hearing, Ms Dangov showed me an automated message on her phone where an email to the director@zenithapartments.net.au had been rejected.
[10] Mr Dennis Clark, who was only appointed a director on 15 February 2019.
[11] I note that this answer was given after some considerable circumlocution by Mr Kuksal who, when asked by Ms Xu whether he had received the notice, responded with comments on the "foreseeable exposure to the outcome of an event" and noting his position as a "stakeholder", rather than representative, of Kornucopia.
[12] Mr Tse showed me his phone which indicated that he had received a call from Mr Kuksal which lasted 7 minutes.
[13] Dimov v Cagorski [2017] VCAT 1055 [45]-[46].
Tse
Kornucopia Pty Ltd