Sprowles, in the matter of Triumph N Triumph Pty Ltd (in liq) [2019] FCA 1461

Sprowles, in the matter of Triumph N Triumph Pty Ltd (in liq) [2019] FCA 1461

Given the significant likelihood that the company had been trustee of the Absolute Triumph Family Trust, that it had been removed as trustee on liquidation and now held the West Wallsend property as bare trustee, and that the property appeared to need to be sold to satisfy company and trust liabilities to the Commonwealth Bank of Australia, it was appropriate to appoint Mr Sprowles as receiver and manager of the trust assets with the requested powers to realise those assets. The Court was not persuaded to approve the specific remuneration amount sought at that time because more detail was required about the work involved and the calculation of the amount.

Jurisdiction
Australia
Judgment Date
04 September 2019
Procedural Posture
Corporations Insolvency Application by Liquidator for Appointment as Receiver and Manager of Trust Assets / Orders Made on Application
Outcome
Application granted substantially; appointment and cost orders made, but the specific remuneration approval sought was not made at that time and liberty to apply was granted.
Legal Topics
['appointment of Receiver and Manager' 'corporate Trustee in Liquidation' 'sale of Trust Assets' 'liquidator Remuneration and Expenses']
['corporations' 'insolvency' 'trusts'] ['appointment of Receiver and Manager' 'corporate Trustee in Liquidation' 'sale of Trust Assets' 'liquidator Remuneration and Expenses']

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Procedural Posture

Corporations Insolvency Application by Liquidator for Appointment as Receiver and Manager of Trust Assets / Orders Made on Application

Legal Issues

  1. 1 ['Whether the liquidator of a company likely to have been trustee of the Absolute Triumph Family Trust should be appointed receiver and manager of the trust assets, including the West Wallsend property.' 'Whether the receiver should have powers under s 420 of the Corporations Act 2001 (Cth), excluding ss 420(2)(s), (t), (u) and (w), as if references to the corporation were references to the trust.' "Whether the receiver's costs, expenses and remuneration should be paid from the trust assets, and whether approval should presently be given to draw remuneration up to $35,000 exclusive of GST."]

Ratio Decidendi

Given the significant likelihood that the company had been trustee of the Absolute Triumph Family Trust, that it had been removed as trustee on liquidation and now held the West Wallsend property as bare trustee, and that the property appeared to need to be sold to satisfy company and trust liabilities to the Commonwealth Bank of Australia, it was appropriate to appoint Mr Sprowles as receiver and manager of the trust assets with the requested powers to realise those assets. The Court was not persuaded to approve the specific remuneration amount sought at that time because more detail was required about the work involved and the calculation of the amount.

Court Disposition

Application granted substantially; appointment and cost orders made, but the specific remuneration approval sought was not made at that time and liberty to apply was granted.

Orders

  • ['Pursuant to s 57 of the Federal Court Act 1976 (Cth) nunc pro tunc, Christian Peter Sprowles of HoganSprowles is appointed, without security, as the receiver and manager of all the property, assets and undertakings of the Absolute Triumph Family Trust ABN 69 610 449 749, including but not limited to the property...