13 COROMANDEL PTY LTD v CL CUSTODIANS AND AUSTRALIAN PROPERTY CUSTODIANS PTY LTD

13 COROMANDEL PTY LTD v CL CUSTODIANS AND AUSTRALIAN PROPERTY CUSTODIANS PTY LTD

Given the evidence of insolvency and misappropriation, and for the urgent collection and preservation of assets, and as Mr Korda had already carried out relevant investigation work, the appointment of Mr Korda as provisional liquidator was appropriate and leave should be granted under s 532(2) despite possible creditor status; and continuation of injunctions was justified to preserve the traceable funds pending determination.

Parties
Applicant: 13 Coromandel Pty Ltd; First Respondent: CL Custodians Pty Ltd; Second Respondent: Australian Property Custodians Pty Ltd
Jurisdiction
Australia
Judgment Date
09 April 1998
Procedural Posture
Corporations Application for Appointment of Provisional Liquidator and Continuation of Injunctions / Interlocutory Orders for Appointment of Provisional Liquidator and Continuation of Injunction
Outcome
Provisional liquidator appointed; leave granted under s 532(2); injunctions continued; ancillary orders made.
Legal Topics
Provisional Liquidators, Leave to Act as Provisional Liquidator, Misleading and Deceptive Conduct, Injunctions, Winding Up in Insolvency
Corporations Law Provisional Liquidators Leave to Act as Provisional Liquidator Misleading and Deceptive Conduct Injunctions Winding Up in Insolvency

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Parties

13 Coromandel Pty Ltd

Applicant

CL Custodians Pty Ltd

First Respondent

Australian Property Custodians Pty Ltd

Second Respondent

Procedural Posture

Corporations Application for Appointment of Provisional Liquidator and Continuation of Injunctions / Interlocutory Orders for Appointment of Provisional Liquidator and Continuation of Injunction

Legal Issues

  1. 1 Whether a provisional liquidator should be appointed to CL Custodians Pty Ltd
  2. 2 Whether leave should be given for Mark Anthony Korda to act as provisional liquidator despite being a likely creditor in excess of $5,000
  3. 3 Whether ex parte injunctions restraining dealings with certain funds should be continued against Australian Property Custodians Pty Ltd

Ratio Decidendi

Given the evidence of insolvency and misappropriation, and for the urgent collection and preservation of assets, and as Mr Korda had already carried out relevant investigation work, the appointment of Mr Korda as provisional liquidator was appropriate and leave should be granted under s 532(2) despite possible creditor status; and continuation of injunctions was justified to preserve the traceable funds pending determination.

Court Disposition

Provisional liquidator appointed; leave granted under s 532(2); injunctions continued; ancillary orders made.

Orders

  • Leave granted for Mark Anthony Korda to be appointed provisional liquidator of CL Custodians Pty Ltd pending further order.
  • Provisional liquidator to take possession of all property, assets and undertaking of CL Custodians Pty Ltd as lawfully able.