In the Matter of Wings-Aus Holdings Pty Limited trading as Hooters Restaurants Australia & New Zealand (in Liquidation) [2009] NSWSC 667

In the Matter of Wings-Aus Holdings Pty Limited trading as Hooters Restaurants Australia & New Zealand (in Liquidation) [2009] NSWSC 667

The administrator was entitled to satisfy his equitable and statutory lien from the Company's assets got in during the administration, including the Bank Account and Equipment, before accounting to the liquidator. Section 443D(b) gives a right to indemnity for remuneration for work done during the administration, limited to the amount as fixed under s 449E, and s 443F secures that right by lien; s 443E and s 556 do not require those assets already held or realised during the administration to be handed to the liquidator to be distributed under the liquidation priority regime before the administrator's lien is satisfied.

Jurisdiction
Australia
Judgment Date
16 July 2009
Procedural Posture
Corporations Application Concerning an Administrator's Right of Indemnity and Lien Over Company Property / Amended Interlocutory Process Seeking Declarations and Orders After Appointment of Liquidator
Outcome
Application granted; declarations and orders made that the administrator was entitled to indemnity and lien and could satisfy Debts and Remuneration from the Bank Account and Equipment before delivering any balance to the liquidator.
Legal Topics
['voluntary Administration' "administrator's Indemnity" "administrator's Lien" 'liquidation Priorities' 'remuneration of Administrators']
['corporations Law' 'insolvency Law'] ['voluntary Administration' "administrator's Indemnity" "administrator's Lien" 'liquidation Priorities' 'remuneration of Administrators']

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Procedural Posture

Corporations Application Concerning an Administrator's Right of Indemnity and Lien Over Company Property / Amended Interlocutory Process Seeking Declarations and Orders After Appointment of Liquidator

Legal Issues

  1. 1 ['Whether the former administrator was entitled to satisfy his lien out of assets of the Company held by him before accounting to the liquidator for debts incurred during the administration and remuneration for work done during the administration.' 'Whether the words "subject to section 556" in s 443E of the Corporations Act 2001 diminished the administrator\'s right to recover remuneration, disbursements and debts incurred during the administration out of assets realised or held during the administration.' 'Whether the administrator had a right of indemnity and lien in respect of remuneration before that remuneration was fixed under s 449E of the Corporations Act 2001.']

Ratio Decidendi

The administrator was entitled to satisfy his equitable and statutory lien from the Company's assets got in during the administration, including the Bank Account and Equipment, before accounting to the liquidator. Section 443D(b) gives a right to indemnity for remuneration for work done during the administration, limited to the amount as fixed under s 449E, and s 443F secures that right by lien; s 443E and s 556 do not require those assets already held or realised during the administration to be handed to the liquidator to be distributed under the liquidation priority regime before the administrator's lien is satisfied.

Court Disposition

Application granted; declarations and orders made that the administrator was entitled to indemnity and lien and could satisfy Debts and Remuneration from the Bank Account and Equipment before delivering any balance to the liquidator.

Orders

  • ["Declaration that the applicant has a right to be indemnified from the Company's property got in during the course of the administration, including the monies in the Bank Account and the Equipment, for the debts and liabilities incurred by the applicant in the administration of the Company and the unpaid...