Pirina, in the matter of Aircraft Support Industries Engineering Pty Ltd (in liq) (No 2) [2020] FCA 1555

Pirina, in the matter of Aircraft Support Industries Engineering Pty Ltd (in liq) (No 2) [2020] FCA 1555

The Court approved the settlement nunc pro tunc under s 477(2B) because the liquidator's entry into the Deed was a proper exercise of power, was not shown to be ill-advised, imprudent, affected by bad faith or error, and the six-month period for payment was reasonable and unlikely to prejudice creditors or the winding up, particularly where the payment obligations were effectively secured by a mortgage over a property.

Jurisdiction
Australia
Judgment Date
19 October 2020
Procedural Posture
Application by Liquidator Under S 477(2 B) of the Corporations Act 2001 (cth) for Approval to Enter Into a Deed of Settlement and Release / Hearing on Application for Approval of Settlement Nunc Pro Tunc
Outcome
Application allowed; the settlement was approved nunc pro tunc under s 477(2B) of the Corporations Act 2001 (Cth).
Legal Topics
['liquidator Powers' 'court Approval of Settlement' 'section 477(2 B) Approval' 'winding Up' 'nunc Pro Tunc Approval']
['corporations' 'corporate Insolvency'] ['liquidator Powers' 'court Approval of Settlement' 'section 477(2 B) Approval' 'winding Up' 'nunc Pro Tunc Approval']

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Procedural Posture

Application by Liquidator Under S 477(2 B) of the Corporations Act 2001 (cth) for Approval to Enter Into a Deed of Settlement and Release / Hearing on Application for Approval of Settlement Nunc Pro Tunc

Legal Issues

  1. 1 ["Whether the Court should approve nunc pro tunc under s 477(2B) of the Corporations Act 2001 (Cth) the liquidator's entry into, and causing the company to enter into, a Deed of Settlement and Release." "Whether the liquidator's decision to settle on terms involving performance more than three months after entry into the agreement was proper, prudent and not prejudicial to creditors or the winding up."]

Ratio Decidendi

The Court approved the settlement nunc pro tunc under s 477(2B) because the liquidator's entry into the Deed was a proper exercise of power, was not shown to be ill-advised, imprudent, affected by bad faith or error, and the six-month period for payment was reasonable and unlikely to prejudice creditors or the winding up, particularly where the payment obligations were effectively secured by a mortgage over a property.

Court Disposition

Application allowed; the settlement was approved nunc pro tunc under s 477(2B) of the Corporations Act 2001 (Cth).

Orders

  • ['Pursuant to subs 477(2B) of the Corporations Act 2001 (Cth), the Court grants approval nunc pro tunc for Vincent Pirina in his capacity as liquidator of Aircraft Support Industries Engineering Pty Ltd (in liquidation) (the company) to enter into, and to cause the company to enter into, a Deed of Settlement and...