Books and records of a Nicheliving-linked entity will be inspected by companies mulling a legal action against the founder of the troubled builder, a recent judgment shows.
Books and records of a Nicheliving-linked entity will be inspected by companies mulling a legal action against the founder of the troubled builder, a recent judgment shows.
Girgis Nominees and Sun Dental sought to inspect Diamond Development Alliance’s books, applying for orders from the Supreme Court of Western Australia.
WA Supreme Court Justice Larissa Strk granted the application, to allow Girgis Nominees and Sun Dental’s representatives to inspect the material and move forward with potential legal action against Nicheliving boss Ronnie Michel-Elhaj.
“Girgis Nominees (WA) and Sun Dental seek to inspect all of the books of Diamond Development Alliance to aid them in deciding whether to commence proceedings as against Mr Michel-Elhaj in his capacity as the sole director of Diamond Development Alliance pursuant to… the Corporations Act," the judgment read.
All but two shares in Diamond Development Alliance are owned by Girgis Nominees and Sun Dental, Australian Securities and Investments Commission data shows.
Perth Property Alliance, formerly Nicheliving projects, holds Class A shares in Diamond Development Alliance.
ASIC lists Mr Michel-Elhaj as the company’s sole director.
Diamond Development Alliance was established to buy and develop a site on Beaufort Street in Inglewood, according to the Supreme Court judgment.
The site was earmarked for a four-storey apartment building, known as Nicheliving’s Sky Homes project.
The owners of Girgis Nominees and Sun Dental claimed they did not know Diamond Development issued A Class shares to Nicheliving Projects, according to the judgment.
“Girgis Nominees (WA) and Sun Dental are also concerned that Diamond Alliance Development funds were used contrary to its purposes (that is, for the sole purpose of purchasing and developing the Sky Homes Properties),” Justice Strk said.
“They consider to be of particular concern the evidence of Mr Michel-Elhaj that Diamond Development Alliance's assets included loans to Nicheliving Capital Pty Ltd and Projex Management & Construction Pty Ltd, and that mortgages had been granted over the Sky Homes Properties for facilities made available to those companies."
The owners of Girgis Nominees and Sun Dental claimed they had no knowledge about loans made to those entities or securities granted over the project, the judgment said.
Kordamentha administrators were called to take control of Nicheliving’s construction division, comprising Nicheliving Holdings, Projex Management & Construction and Rubix Future Building Technology, in late 2024.
The administration came a month after the state government banned Nicheliving and its directors from operating for a decade.
The state government also announced it would front up to $40 million to finish hundreds of incomplete homes.
Justice Strk’s judgment revealed Diamond Development Alliance applied to be wound up in October 2025 but without telling Girgis or Sun Dental.
Diamond Development Alliance had a debt of $27.4 million as of mid-2025, according to the judgment.
Mr Michel-Elhaj claimed Girgis Nominees and Sun Dental had five years to look into Diamond Development Alliance’s affairs but only sought court orders after a winding up application was made.
However, Justice Strk said it appeared Girgis and Sun Dental only knew about the matters that concerned them when served with Diamond Development’s winding up application in December, which they received because they were shareholders.
“The case for investigation concerns conduct that took place shortly after registration of Diamond Development Alliance, and since that time,” Justice Strk said in her judgment.
“The information available to the applicants has caused them to have grave concerns as to all aspects of Diamond Development Alliance's operations, and whether those operations were consistent with or in furtherance of its purpose.
“In this case, the applicants have done more than show dissatisfaction with or disagreement with management decisions.
“In all of the circumstances I am satisfied that the breadth of the books sought to be inspected does not demonstrate a lack of good faith on the part of the applicants, but is warranted.”
ASIC lists Sherif Girgis as the sole owner and director of Girgis Nominees, and Michael Shams as the owner and director of Sun Dental.
