Darby Street Thai restaurant at centre of $2 sale court battle
A popular Newcastle Thai restaurant is in the spotlight after a bitter fallout between business partners landed in the New South Wales Supreme Court, which ruled that its operator breached her duties as a director in a controversial $2 sale.
Ratcharin Sopharak, who ran Benjamas Thai on Darby Street, sold the business to a company she owned for just $2—$1 for equipment and $1 for goodwill. The court found the sale was made without informing co-owner Xuming Du, despite the business holding more than A$33,000 in cash and over A$10,000 in equipment at the time.
The transaction also excluded Sorak Thai Pty Ltd’s nearly A$100,000 tax debt, which was left behind with the original company while all assets were transferred to Sopharak’s newly created entity, Sorak & Co.
Justice Mark Richmond ruled Sopharak acted improperly in orchestrating the transfer.
“The explanation for the sale transaction was that she believed if she ran the restaurant without Mr Du's involvement, she could make it profitable,” Justice Richmond said. “However, the evidence establishes that he had little or no involvement in the running of the business.”
He further dismissed her claims of acting in good faith.
“She made no attempt to establish whether the business was worth more than $2... I infer that she knew that she was likely to benefit personally from the sale, as the sole director and shareholder of the second defendant.”
Both parties have been given 14 days to submit a potential resolution before the court makes its final judgment.
Jonathan Jackson, 22nd July 2025
