Kijurina and Albarran in their capacity as liquidators ET Family Pty Limited (in Liq) v Taouk; in the matter of ET Family Pty Limited (in Liq) [2014] FCA 542

Kijurina and Albarran in their capacity as liquidators ET Family Pty Limited (in Liq) v Taouk; in the matter of ET Family Pty Limited (in Liq) [2014] FCA 542

Because there were too many anomalies and inexplicable inconsistencies in the second defendant's evidence concerning payment of the April rent from the Cowra property into her son's St George Bank account and disbursements from that account, the Court lacked sufficient confidence that any relief short of appointing a receiver would adequately protect the plaintiffs' interests. It was therefore both desirable for the purpose of protecting the plaintiffs' interests under s 1323(1) of the Corporations Act 2001 (Cth) and just or convenient under s 57(1) of the Federal Court of Australia Act 1976 (Cth) to grant the alternative relief appointing a receiver.

Jurisdiction
Australia
Judgment Date
26 May 2014
Procedural Posture
Interlocutory Application in Federal Court Proceeding in the Matter of ET Family Pty Limited (in Liquidation) / Application for Controlled Monies Orders Or, Alternatively, Appointment of a Receiver Over Properties
Outcome
The plaintiffs' alternative interlocutory relief was granted and a receiver was appointed over the scheduled properties without security.
Legal Topics
['appointment of Receiver' "protection of Plaintiffs' Interests" 'rental Income From Properties' 'interlocutory Relief']
['corporations' 'insolvency' 'federal Court Procedure' 'receivership'] ['appointment of Receiver' "protection of Plaintiffs' Interests" 'rental Income From Properties' 'interlocutory Relief']

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Procedural Posture

Interlocutory Application in Federal Court Proceeding in the Matter of ET Family Pty Limited (in Liquidation) / Application for Controlled Monies Orders Or, Alternatively, Appointment of a Receiver Over Properties

Legal Issues

  1. 1 ['Whether rental income from the relevant properties should be paid into a controlled monies account with joint signatories.' 'Whether the second defendant should repay $12,000 into the controlled monies account.' 'Whether a receiver should be appointed to collect rental income, manage the properties and pay property expenses.' "Whether appointment of a receiver was desirable for protecting the plaintiffs' interests and just or convenient in light of anomalies and inconsistencies in the second defendant's evidence."]

Ratio Decidendi

Because there were too many anomalies and inexplicable inconsistencies in the second defendant's evidence concerning payment of the April rent from the Cowra property into her son's St George Bank account and disbursements from that account, the Court lacked sufficient confidence that any relief short of appointing a receiver would adequately protect the plaintiffs' interests. It was therefore both desirable for the purpose of protecting the plaintiffs' interests under s 1323(1) of the Corporations Act 2001 (Cth) and just or convenient under s 57(1) of the Federal Court of Australia Act 1976 (Cth) to grant the alternative relief appointing a receiver.

Court Disposition

The plaintiffs' alternative interlocutory relief was granted and a receiver was appointed over the scheduled properties without security.

Orders

  • ['Sule Arnautovic of Level 4, 55 Hunter Street, Sydney, NSW, 2000 be appointed receiver without security to the properties referred to in the Schedule.' 'The receiver have the power to collect, get in and receive the rental for each of the properties and to manage the same, and to pay and discharge all expenses...