This week's TGIF considers the case of Choy v Tiaro Coal Ltd (in
liq) [2018] NSWCA 205, where the NSW Court of Appeal
denied leave to appeal from a decision of Justice Black, in which
his Honour dismissed an application to set aside an originating
process on the basis that it was not served "as soon as
practicable" after it was filed, as required by rule 2.7 of
the Corporations Rules.
WHAT HAPPENED?
On 10 December 2015, liquidators were appointed to Tiaro Coal
Ltd (in liq). Throughout 2016, the liquidators sought to obtain
funding for proceedings against a number of current and former
directors and officers of the company.
In order to prevent the company's claims becoming
time-barred, the liquidators filed an originating process in the
Supreme Court of NSW, but did not serve it. After further
negotiations, the liquidators finally secured funding and, shortly
thereafter, served the originating process, just shy of six months
of the date of filing.
