611 Pty Ltd (in liq), in the matter of 611 Pty Ltd (in liq) (No 2) [2019] FCA 341

611 Pty Ltd (in liq), in the matter of 611 Pty Ltd (in liq) (No 2) [2019] FCA 341

The court considered the necessity and appropriateness of payments to discharge encumbrances on real property (in favour of ANZ and Office of State Revenue) and to pay remuneration already approved by creditors, and was satisfied based on the evidence and absence of opposition that the plaintiffs as court-appointed receivers could distribute the specified funds accordingly. The court declined to approve unspecified further payments in the absence of detailed evidence.

Jurisdiction
Australia
Judgment Date
08 March 2019
Procedural Posture
Corporate Insolvency Application / Application for Directions and Orders Regarding Trust Fund Distribution and Remuneration
Outcome
Orders granted approving specific distributions of trust property proceeds, payment of remuneration, and costs. Certain further payments stood over for later determination.
Legal Topics
['liquidator Remuneration' 'distribution of Trust Property' 'court Approval of Payments' 'discharge of Encumbrances']
['corporations Law' 'insolvency Law' 'trusts Law'] ['liquidator Remuneration' 'distribution of Trust Property' 'court Approval of Payments' 'discharge of Encumbrances']

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Procedural Posture

Corporate Insolvency Application / Application for Directions and Orders Regarding Trust Fund Distribution and Remuneration

Legal Issues

  1. 1 ['Whether the court should approve and direct the distribution of trust funds by liquidators/receivers to discharge encumbrances and pay for costs of sale' 'Whether the liquidators and receivers should be permitted to pay approved remuneration from trust property']

Ratio Decidendi

The court considered the necessity and appropriateness of payments to discharge encumbrances on real property (in favour of ANZ and Office of State Revenue) and to pay remuneration already approved by creditors, and was satisfied based on the evidence and absence of opposition that the plaintiffs as court-appointed receivers could distribute the specified funds accordingly. The court declined to approve unspecified further payments in the absence of detailed evidence.

Court Disposition

Orders granted approving specific distributions of trust property proceeds, payment of remuneration, and costs. Certain further payments stood over for later determination.

Orders

  • ["Second and third plaintiffs are justified in distributing specific amounts from proceeds of sale: $6,896,120.25 (or other required amount) to ANZ, $90,942.19 to Office of State Revenue, $99,281.50 plus GST of $9,928.15 for remuneration for 24 Aug 2018 to 23 Oct 2018; approval nunc pro tunc for specific earlier...