Event and Time
Event Description
This case revolves around a motion filed by Xiaoqing Zheng seeking to join existing proceedings as a judgment creditor to recover funds paid into court by Westpac Banking Corporation related to the sale of a property in Killara owned by Nina Flynn Zhu. The funds were deposited in line with the Trustee Act 1925 (NSW) after Westpac exercised its power of sale as a mortgagee. Zheng claims entitlement to these funds as part of an unpaid judgment against Zhu.
Application and Claims
- Zheng applied to be added as a party to the proceedings and to have the funds ($1,443,544.65) paid out to him.
- He based his application on:
- UCPR r 6.27 (joinder of parties) - UCPR r 55.11 (payment out of court) - UCPR r 41.3 (withdrawal of deposited funds) - The court's inherent power
Zheng's claim rests on a previous judgment where he secured a default judgment against Zhu for $2,988,996.40 after failing to receive repayment for a $6,190,000 investment made in a failed development project.
Judicial Decisions
1. The court ordered that Xiaoqing Zheng be added as a party to the proceedings. 2. It directed the funds paid into court by Westpac, along with any accrued interest, to be paid to Xiaoqing Zheng.
Dispute Points and Legal Basis
Dispute Points
- Zheng’s Arguments:
- Claimed a right to the funds based on the judgment against Zhu. - Suggested that no other creditors had valid claims, asserting that unsecured creditors must pursue their claims independently.
- Ms. Zhu's Position:
- Did not appear in court during proceedings, likely attempting to avoid her creditors. - Evidence indicated that her whereabouts were known but not formally served with the motions.