NC Re Capital Limited (Vol. Admin. Apptd.) & 2 Ors [1999] NSWSC 625

NC Re Capital Limited (Vol. Admin. Apptd.) & 2 Ors [1999] NSWSC 625

The Administrator is justified, while winding-up is not yet inevitable, in acting without regard to the statutory regimes under s116(3) of the Insurance Act 1973 (Cth) and s562A of the Corporations Law, provided he continues to act impartially and in the interests of creditors as a whole. If insolvency and winding-up become imminent, the Administrator must seek further directions.

Jurisdiction
Australia
Judgment Date
23 June 1999
Procedural Posture
Application for Directions by Voluntary Administrator / Directions Sought Prior to Any Winding Up; Ex Parte, First Instance
Outcome
Application granted; directions given as sought
Legal Topics
['voluntary Administration' "administrator's Duties" 'statutory Priorities on Winding Up' 'reinsurance Liabilities']
['corporations Law' 'insurance Law' 'equity'] ['voluntary Administration' "administrator's Duties" 'statutory Priorities on Winding Up' 'reinsurance Liabilities']

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Procedural Posture

Application for Directions by Voluntary Administrator / Directions Sought Prior to Any Winding Up; Ex Parte, First Instance

Legal Issues

  1. 1 ['Whether the Administrator is justified in not taking into account statutory priorities under s116(3) of the Insurance Act 1973 (Cth) and s562A of the Corporations Law when winding-up is not imminent']

Ratio Decidendi

The Administrator is justified, while winding-up is not yet inevitable, in acting without regard to the statutory regimes under s116(3) of the Insurance Act 1973 (Cth) and s562A of the Corporations Law, provided he continues to act impartially and in the interests of creditors as a whole. If insolvency and winding-up become imminent, the Administrator must seek further directions.

Court Disposition

Application granted; directions given as sought

Orders

  • ['Administrator justified in not taking into account s116(3) of the Insurance Act 1973 (Cth) and s562A of the Corporations Law when managing the property and affairs of the plaintiffs until winding-up is imminent or commenced, as per paragraphs 1 and 2 of the Summons of 21 June 1999.']