Federal Court of Australia

Sozou v Bardella, in the matter of Dropshaft Pty Ltd (in liquidation) [2026] FCA 890

File number(s):

NSD 1235 of 2026

Judgment of:

GOODMAN J

Date of judgment:

8 July 2026

Catchwords:

PRACTICE AND PROCEDURE – application by plaintiffs to join multiple defendants to a proceeding under s 588FF of the Corporations Act 2001 (Cth) – application granted

Legislation:

Corporations Act 2001 (Cth), s 588FF

Federal Court Act 1976 (Cth), s 37M

Federal Court Rules 2011 (Cth), rr 1.31, 1.32, 9.02, 9.05

Cases cited:

Dudley (Liquidator) v RHG Construction Fitout & Maintenance Pty Ltd [2019] FCA 1355

Jahani (liquidator) v Alfabs Mining Equipment Pty Ltd, in the matter of Delta Coal Mining Pty Ltd (in liq) [2020] FCA 752

Sozou (liquidator) v ACN 608 767 942 Pty Ltd, in the matter of SSG NSW Pty Ltd ACN 637 378 333 (in liq) [2026] FCA 531

Division:

General Division

Registry:

New South Wales

National Practice Area:

Commercial and Corporations

Sub-area:

Corporations and Corporate Insolvency

Number of paragraphs:

6

Date of hearing:

8 July 2026

Counsel for the Plaintiffs:

Mr J Hynes with Ms M Cvjetanovic

Solicitor for the Plaintiffs:

Norton Rose Fulbright Australia

Counsel for the Defendants:

The defendants did not appear

ORDERS

NSD 1235 of 2026

IN THE MATTER OF DROPSHAFT PTY LTD (IN LIQUIDATION)

BETWEEN:

KATHERINE SOZOU, ANTHONY NORMAN CONNELLY AND WILLIAM JAMES HARRIS IN THEIR CAPACITIES AS JOINT AND SEVERAL LIQUIDATORS OF DROPSHAFT PTY LTD (IN LIQUIDATION) ACN 650 838 369

First Plaintiffs

DROPSHAFT PTY LTD (IN LIQUIDATION) ACN 650 838 369

Second Plaintiff

AND:

MASSIMILIANO BARDELLA

First Defendant

AUGUSTINE CHAN

Second Defendant

ACORN MANAGED INVESTMENTS PTY. LTD. ACN 169 780 518 (and others named in the Schedule)

Third Defendant

order made by:

GOODMAN J

DATE OF ORDER:

8 JULY 2026

THE COURT ORDERS THAT:

1.    Pursuant to rules 1.31, 1.32 and 9.05 of the Federal Court Rules 2011 (Cth), the first plaintiffs have leave nunc pro tunc to join the second to eighth defendants listed in Schedule A to the Originating Process as defendants to the proceeding.

2.    The proceeding be referred to the National Operations Registrar for allocation to a docket judge.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

REASONS FOR JUDGMENT

(Delivered extempore and revised)

GOODMAN J:

1    The first plaintiffs are the liquidators of the second plaintiff.

2    By an originating process filed today, the plaintiffs seek final relief in the form of orders pursuant to s 588FF of the Corporations Act 2001 (Cth) against eight defendants with respect to 25 claims under that section.

3    The plaintiffs also seek an interlocutory order for the joinder nunc pro tunc of the parties described in the originating process as the second to eighth defendants. The application for that order was made before me in my capacity as duty judge today. It was made ex parte and the second to eighth defendants have not been heard on the application. I was satisfied on the basis of the affidavit sworn by one of the first plaintiffs, Mr Anthony Connelly, that in view of the impending expiry of a limitation period and the time required to formulate the claims, the application ought be heard today.

4    The joinder order is sought pursuant to r 9.05 of the Federal Court Rules 2011 (Cth) because of the view that has been taken as to the proper construction of r 9.02 of the Rules: see, e.g. Dudley (Liquidator) v RHG Construction Fitout & Maintenance Pty Ltd [2019] FCA 1355 (Jackson J); Jahani (liquidator) v Alfabs Mining Equipment Pty Ltd, in the matter of Delta Coal Mining Pty Ltd (in liq) [2020] FCA 752 at [11] to [12] (Stewart J).

5    In my view such an order ought be made under r 9.05 – and under rr 1.31 and 1.32 of the Rules – consistently with the overarching purpose of facilitating the just resolution of disputes according to law and as quickly, inexpensively and efficiently as possible: s 37M of the Federal Court Act 1976 (Cth). In this respect, I respectfully agree with the observations of Justice Lee in Sozou (liquidator) v ACN 608 767 942 Pty Ltd, in the matter of SSG NSW Pty Ltd ACN 637 378 333 (in liq) [2026] FCA 531 at [9] to [14] and [17] to [18]. The pursuit of a single proceeding in the present case appears likely to involve a more efficient use of the Court’s limited resources.

6    I take into account the fact that the second to eighth defendants have not been heard on the application. However, it is not apparent that the making of the joinder order sought will cause any prejudice to them in circumstances where: (1) I will also order that the proceeding be referred to the National Operations Registrar for allocation to a docket judge, who will be able to form their own views about the future conduct of the proceeding; and (2) it will be open to the second to eighth defendants to make any appropriate application to the docket judge: see SSG NSW at [21].

I certify that the preceding six (6) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Goodman.

Associate:

Dated:    8 July 2026


SCHEDULE OF PARTIES

NSD 1235 of 2026

Defendants

Fourth Defendant:

BEFOUND (AUST) PTY LTD ACN 619 220 834

Fifth Defendant:

DRAGON HEAD PROPERTIES PTY LTD ACN 607 068 477

Sixth Defendant:

EBM HOLDINGS PTY LTD ACN 124 861 212

Seventh Defendant:

EXED RESOURCES PTY LTD ACN 155 984 526

Eighth Defendant:

HARDWOOD HOLDINGS PTY LTD ACN 643 253 374