Deputy Commissioner of Taxation, in the matter of Manor Holdings (NSW) Pty Ltd v Manor Holdings (NSW) Pty Ltd [2018] FCA 590

Deputy Commissioner of Taxation, in the matter of Manor Holdings (NSW) Pty Ltd v Manor Holdings (NSW) Pty Ltd [2018] FCA 590

It was appropriate to appoint Messrs Walker and Tang as Receivers and Managers under s 57 of the Federal Court of Australia Act 1976 (Cth) because Manor had ceased to be trustee upon being put into administration, no other steps were being taken to appoint a trustee, Manor could not sell Trust assets to satisfy liabilities incurred as trustee, and appointment would enable possession and sale of the Trust assets so that Manor could enforce its former indemnity and discharge its liabilities. The beneficiaries and respondents had sufficient notice and none appeared to oppose the application.

Jurisdiction
Australia
Judgment Date
30 April 2018
Procedural Posture
Bankruptcy and Insolvency; Corporations and Corporate Insolvency Application for Appointment of Receivers and Managers of Trust Property / Interlocutory Application Dated 24 April 2018 Heard and Determined on 30 April 2018
Outcome
Interlocutory application allowed.
Legal Topics
['appointment of Receivers and Managers' 'corporate Trustee in Liquidation' 'trustee Right of Indemnity' 'sale of Trust Property' 'trust Assets']
['bankruptcy and Insolvency' 'corporations and Corporate Insolvency' 'trusts'] ['appointment of Receivers and Managers' 'corporate Trustee in Liquidation' 'trustee Right of Indemnity' 'sale of Trust Property' 'trust Assets']

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Procedural Posture

Bankruptcy and Insolvency; Corporations and Corporate Insolvency Application for Appointment of Receivers and Managers of Trust Property / Interlocutory Application Dated 24 April 2018 Heard and Determined on 30 April 2018

Legal Issues

  1. 1 ['Whether the second and third applicants should be appointed as Receivers and Managers of the property located at 25 Norton Street, Ballina NSW and any other assets of the Manor Holdings Unit Trust under s 57(1) of the Federal Court of Australia Act 1976 (Cth).' 'Whether Manor Holdings (NSW) Pty Ltd, having been put into administration and then liquidation, had ceased to be trustee of the Manor Holdings Unit Trust and was unable to sell trust assets to satisfy liabilities incurred as trustee.' "Whether appointment of receivers and managers was necessary to enable realisation of trust assets and enforcement of Manor's former indemnity under the Trust Deed."]

Ratio Decidendi

It was appropriate to appoint Messrs Walker and Tang as Receivers and Managers under s 57 of the Federal Court of Australia Act 1976 (Cth) because Manor had ceased to be trustee upon being put into administration, no other steps were being taken to appoint a trustee, Manor could not sell Trust assets to satisfy liabilities incurred as trustee, and appointment would enable possession and sale of the Trust assets so that Manor could enforce its former indemnity and discharge its liabilities. The beneficiaries and respondents had sufficient notice and none appeared to oppose the application.

Court Disposition

Interlocutory application allowed.

Orders

  • ['Pursuant to s 57(1) of the Federal Court of Australia Act 1976 (Cth) the second and third applicants be appointed as the Receivers and Managers of the property located at 25 Norton Street, Ballina NSW (the Property) and any other assets of the Manor Holdings Unit Trust (the Trust).' 'The second and third...