Receivers’ Swiss fishing expedition stalls

Australian-domiciled receivers fishing for evidence of an alleged fraud are having a tough time obtaining a permit to cast in Swiss ponds.

In the Federal Court yesterday, counsel for the receivers of Innovative 3D Technology Pty Ltd was warned that his client’s application to amend an existing process involving the issuance of subpoenas and summonses for examination to parties in Switzerland might be rendered futile by the Swiss Crimes Act.

KordaMentha partners Rahul Goyal and Michael Korda were appointed receivers & managers of Innovative 3D Technology Pty Ltd in September 2021.

In probing the affairs of the company, their investigations led them to the mountainous and landlocked tax haven but counsel for the recipients told Federal Court judge Tim McEvoy yesterday that the summonses may be discharged on the basis of “material non-disclosures” in the eyes of the Swiss legal system behind which the proposed examinees reside.

Goyal and Korda’s counsel was quick to put on the record that there has been no material non-disclosure but this wasn’t the only problem for Goyal and Korda in seeking to publicly examine foreign nationals located outside the jurisdiction.

“It seems to me that the receivers are conceding the subpoena point and conceding that the letters rogatory that they sought to file need to be significantly amended,” the judge said.

“It also seems to me to be an attempt by the receivers to leave the other issues in which troubles me.”

The matter is scheduled to return to court on June 22.