Vardy v Linz, in the matter of Bondi Pizza Pty Ltd (in liq) (No 2) [2022] FCA 1080

Vardy v Linz, in the matter of Bondi Pizza Pty Ltd (in liq) (No 2) [2022] FCA 1080

It is appropriate to grant approval under s 477(2A), and to the extent it applies, s 477(2B) of the Corporations Act 2001 (Cth) for the entry into the Deed of Variation, given the liquidator's reasonable commercial judgment. The Deed of Variation is not invalid for lack of prior approval, by virtue of s 1322(4)(a). Suppression orders protecting confidential documents are necessary to prevent prejudice to the administration of justice.

Jurisdiction
Australia
Judgment Date
13 September 2022
Procedural Posture
Corporations – Approval of Entry Into Deed of Variation and Suppression Application by Liquidator / Application for Orders and Declarations – Reasons for Judgment
Outcome
Applications granted
Legal Topics
["liquidators' Powers" 'court Approval of Compromise/agreements' 'suppression Orders' 'variation of Deeds During Liquidation']
['corporations Law' 'corporate Insolvency'] ["liquidators' Powers" 'court Approval of Compromise/agreements' 'suppression Orders' 'variation of Deeds During Liquidation']

Case Brief

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Procedural Posture

Corporations – Approval of Entry Into Deed of Variation and Suppression Application by Liquidator / Application for Orders and Declarations – Reasons for Judgment

Legal Issues

  1. 1 ['Whether the Deed of Variation should be approved pursuant to ss 477(2A) and 477(2B) of the Corporations Act 2001 (Cth)' 'Whether suppression orders should be granted pursuant to s 37AF of the Federal Court of Australia Act 1976 (Cth)' 'Whether the Deed of Variation is invalid for want of prior approval (s 1322(4)(a))']

Ratio Decidendi

It is appropriate to grant approval under s 477(2A), and to the extent it applies, s 477(2B) of the Corporations Act 2001 (Cth) for the entry into the Deed of Variation, given the liquidator's reasonable commercial judgment. The Deed of Variation is not invalid for lack of prior approval, by virtue of s 1322(4)(a). Suppression orders protecting confidential documents are necessary to prevent prejudice to the administration of justice.

Court Disposition

Applications granted

Orders

  • ["Second plaintiff on behalf of the first plaintiff is authorised nunc pro tunc to enter into the Deed of Variation being Confidential Exhibit 'DJV-04'." 'Suppression orders granted over specified confidential exhibits until conclusion of related litigation or further order.' "Declared that the Deed of Variation is...