In the matter of Cheema Investing Pty Ltd (in liq) and Cheema Trading Pty Ltd (in liq) [2024] NSWSC 1145

In the matter of Cheema Investing Pty Ltd (in liq) and Cheema Trading Pty Ltd (in liq) [2024] NSWSC 1145

Court is satisfied liquidator should be appointed as receiver and manager over trust assets to protect right of indemnity, facilitate orderly winding up and secure payment to trust creditors, given risk of removal by appointor and consent of interested parties.

Parties
First Plaintiff: Liam Thomas Bailey in his capacity as Liquidator of Cheema Investing Pty Ltd and Cheema Trading Pty Ltd; Second Plaintiff: Cheema Investing Pty Ltd; Third Plaintiff: Cheema Trading Pty Ltd
Jurisdiction
Australia
Judgment Date
10 July 2024
Procedural Posture
Originating Process / Application for Appointment of Receiver
Outcome
Application granted; liquidator appointed receiver and manager over business and assets of the Trusts.
Legal Topics
Receivership of Trust Assets, Appointment of Liquidator as Receiver, Trustee’s Right of Indemnity
Corporations Law Equity Receivership of Trust Assets Appointment of Liquidator as Receiver Trustee’s Right of Indemnity

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Parties

Liam Thomas Bailey in his capacity as Liquidator of Cheema Investing Pty Ltd and Cheema Trading Pty Ltd

First Plaintiff

Cheema Investing Pty Ltd

Second Plaintiff

Cheema Trading Pty Ltd

Third Plaintiff

Procedural Posture

Originating Process / Application for Appointment of Receiver

Legal Issues

  1. 1 Whether liquidator should be appointed as receiver of trust property
  2. 2 Whether liquidator’s remuneration, costs and disbursements should be paid out of trust assets
  3. 3 Whether powers should be conferred on receiver to administer trust assets

Ratio Decidendi

Court is satisfied liquidator should be appointed as receiver and manager over trust assets to protect right of indemnity, facilitate orderly winding up and secure payment to trust creditors, given risk of removal by appointor and consent of interested parties.

Court Disposition

Application granted; liquidator appointed receiver and manager over business and assets of the Trusts.

Orders

  • Liquidator appointed, nunc pro tunc, as receiver and manager over business and assets of Cheema Investment Trust and Cheema Trading Trust.
  • Direction under s 90-15 of Insolvency Practice Schedule (Corporations) confirming liquidator can act as receiver for respective Trusts.