Avant Garde Investments Pty Ltd (in liq), in the matter of Avant Garde Investments Pty Ltd (in liq) v Cheema [2021] FCA 125

Avant Garde Investments Pty Ltd (in liq), in the matter of Avant Garde Investments Pty Ltd (in liq) v Cheema [2021] FCA 125

Approval of the Deed and entry of default judgment is justified given the admitted facts due to defendant’s default, the liquidator’s bona fide exercise of powers, and that the claims fall within the jurisdiction of the Court.

Jurisdiction
Australia
Judgment Date
17 February 2021
Procedural Posture
Corporations/corporate Insolvency / Interlocutory Application and Default Judgment
Outcome
Application allowed; orders made as sought.
Legal Topics
["liquidator's Approval to Enter Deed of Settlement and Release" 'default Judgment' 'voidable Transactions' 'unjust Enrichment']
['corporations' 'corporate Insolvency'] ["liquidator's Approval to Enter Deed of Settlement and Release" 'default Judgment' 'voidable Transactions' 'unjust Enrichment']

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Procedural Posture

Corporations/corporate Insolvency / Interlocutory Application and Default Judgment

Legal Issues

  1. 1 ['Whether the liquidator should be approved to enter into the Deed of Settlement and Release under s 477(2B) of the Corporations Act 2001 (Cth)' 'Whether default judgment should be entered against Silverstone Capital Pty Ltd for $1,100,000 under r 5.23(2)(c) of the Federal Court Rules 2011 (Cth)']

Ratio Decidendi

Approval of the Deed and entry of default judgment is justified given the admitted facts due to defendant’s default, the liquidator’s bona fide exercise of powers, and that the claims fall within the jurisdiction of the Court.

Court Disposition

Application allowed; orders made as sought.

Orders

  • ['Approval given to liquidator, nunc pro tunc, to enter into the Deed of Settlement and Release dated 14 August 2020.' 'Default judgment entered against Silverstone Capital Pty Ltd in the sum of $1,100,000.' 'Silverstone Capital Pty Ltd to pay Plaintiffs’ costs of the proceedings, as agreed or taxed, so far as...