Bundaberg Grand Hotel at centre of $1.5m Supreme Court fight

A legal battle involving millions of dollars and the Grand Hotel in Bundaberg has heard a Queensland businessman was ‘taken advantage of’ during the sale of the pub.

A businessman involved in the March 2022 sale of Bundaberg’s Grand Hotel for $3.6m is now fighting against a court order which could bankrupt him, claiming he was taken advantage in the deal.

A businessman is battling a $1.5 million debt claiming he was taken advantage of due to his poor English in a $3.6m deal to buy the Bundaberg Grand Hotel three years ago.

Rakesh Palta, who was involved in the March, 2022 sale, is now fighting the $1.5 million court order that could bankrupt him.

Mr Palta won the right to take his battle further on Tuesday after the Cairns Supreme Court overturned a default judgment of $1.5 million awarded against him in mid-2024.

Mr Palta was one of two defendants in the claim, along with Victorian-based company Concast Pty Ltd, which was launched in January 2023 by HT Contracting Pty Ltd.

The published court order said all three parties had been involved in a loan made as part of the deal to buy the hotel.

Mr Palta, who owned a concreting business, and Concast were guarantors to a $960,000 loan by HT Contracting to a third company, 79 Grand Hotel, the company that bought the hotel.

A businessman involved in the March 2022 sale of Bundaberg’s Grand Hotel for $3.6m is now fighting a court order that could bankrupt him, claiming he was taken advantage of in the deal.

The initial $960,000 loan was made to 79 Grand Hotel, by HT Contracting in March 2022, the court heard.

The deal had interest rates of 18 per cent each year, and 24 per cent in the event of a default on the loan.

A repayment of $420,000 was due by May 2022, and the balance nine months later.

The loan was not repaid, the court order said.

RP Data records show the Grand Hotel was sold to new owners in July 2023 for $2.9 million.

HT Contracting launched a legal claim in January, 2023 over the debt.

The company won a default judgment in July 2024 ordering Mr Palta and Concast to pay $1.5 million to HT Contracting, the court order said.

In August, Mr Palta applied to have the order overturned, alleging he had been taken advantage of.

Another twist for controversial mining plans

‘Could never forget him’: Tributes flow after teen’s sudden death

Rakesh Palta and Concast were guarantors to a $960,000 loan by HT Contracting to a third company, 79 Grand Hotel, which was the company which bought the hotel.

The order said Mr Palta, in an affidavit to the court, claimed he had been told by representatives of Concast “they would resolve the dispute” and this was why he did not file any notice to defend against the original claim.

Mr Palta further told the court in evidence he had been approached about potentially buying the hotel in March 2022.

The proposed deal was for the hotel to be rented out “straight away” and rental income from the hostel, pub and shops would cover the loan repayments, the court was told.

Justice James Henry found Mr Palta was “in a position of special disadvantage” as English was not his first language and may have a prima facie defence of unconscionable conduct against HT Contracting’s claims.

The order said Mr Palta gave evidence under cross-examination that he “was being told this property was in very good condition, it will be rented straight away, and the first few months’ interest would be paid off … it’s a prepaid, and then we don’t need to put any payment, but that will be covered from the rent”.

Justice James Henry found Mr Palta was “in a position of special disadvantage” as English was not his first language and may have a prima facie defence of unconscionable conduct against HT Contracting’s claims.

Justice Henry ordered the default judgment be set aside and gave until April 9, 2025, to file a defence against HT Contracting’s claim.