Golden Rain Development Pty Ltd (ACN 166 672 537) v The Owners - Strata Plan No 97938

2026/00091811

PROCEDURE – the applicant seeks leave to appeal against a decision of Griffiths AJ made on 10 February 2026 granting a freezing order restraining the applicant from selling terrace houses it developed in Erskineville, NSW. The applicant redeveloped land in 2014 into 109 apartments which it subsequently sold, and 18 terraces, 15 of which remain unsold. The respondent commenced the proceedings below in May 2022 alleging defects in the common property of the apartments and claiming damages of approximately $26,000,000. The plaintiff has served a large volume of evidence however no directions have been made for the defendant to serve any evidence yet. The applicant's principal submission is that the primary judge acted upon a wrong principle. That principle is that Aqua/and North Sydney Lavender Developments Pty Ltd v The Owners - Strata Plan No. 102081 [2025] NSWCA 143 supports the proposition that selling assets for the legitimate business purpose of paying down debt owed to related parties is a dissipation of assets which may be enjoined by a freezing order (if repaying the debt would give rise to a danger that a prospective judgment will be unsatisfied). The applicant contends that Aqua/and does not support this principle, and that repaying legitimate debt as it falls due: (a) is not a dissipation of assets, (b) is not a transaction that gives rise to abuse or frustration of the court's process, and (c) is not a transaction that ought to be enjoined by a freezing order. The grounds of appeal in the applicant's summary of argument are formulated as: (1) a freezing order should not prevent a defendant from paying debts; (2) the primary judge erred by failing to distinguish the transactions in Aqua/and to the instant case; (3) the primary judge erred by considering that an inability to meet a prospective judgment gives rise to requisite danger warranting the making of the freezing order; (4) the primary judge erred by taking into account the irrelevant consideration that the lenders are related parties; (5) the granting of security by the applicant in July 2025 did not give rise to a requisite danger; (6) the primary judge failed to find that prejudice will be suffered by the applicant and lenders, and (7) the primary judge erred by concluding that the intention for the applicant to continue to pursue further development opportunities was not supported by evidence.

The Owners – Strata Plan No 97938 v Golden Rain Development Pty Ltd [2026] NSWSC 37