In the matter of Octaviar Administration Pty Ltd (in liq) [2017] NSWSC 1556

In the matter of Octaviar Administration Pty Ltd (in liq) [2017] NSWSC 1556

The compromise and entry into the Resolution Deed between the liquidators of Octaviar Limited (in liquidation) and Octaviar Administration Pty Ltd (in liquidation) is proper and reasonable, avoids costly further litigation, reflects a series of justifiable concessions on complex and contestable contractual issues, and is in the best interests of both companies' creditors—particularly given the existence of common creditors; accordingly, directions should be given that the liquidators are justified in entering into and performing their obligations under the Resolution Deed.

Jurisdiction
Australia
Judgment Date
16 November 2017
Procedural Posture
Directions Application in Liquidation / Interlocutory (application for Directions)
Outcome
Directions granted as sought to the Plaintiffs and Applicant; orders for costs in the liquidation.
Legal Topics
['winding Up' "liquidator's Duties" 'judicial Advice to Liquidators' 'settlement of Competing Claims' 'conduct of Liquidation']
['corporations Law' 'insolvency'] ['winding Up' "liquidator's Duties" 'judicial Advice to Liquidators' 'settlement of Competing Claims' 'conduct of Liquidation']

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Procedural Posture

Directions Application in Liquidation / Interlocutory (application for Directions)

Legal Issues

  1. 1 ['Whether liquidators of Octaviar Limited and Octaviar Administration Pty Ltd are justified in entering into and performing obligations under the OCV Settlement Sum Resolution Deed.' 'Whether the compromise reflected in the Resolution Deed is reasonable and in the interests of the estates and their creditors.' 'Whether the courts should provide the directions sought under the Corporations Act 2001 (Cth) ss 477, 479(3), 511, and/or the applicable provisions of the Insolvency Law Reform Act 2016 (Cth).']

Ratio Decidendi

The compromise and entry into the Resolution Deed between the liquidators of Octaviar Limited (in liquidation) and Octaviar Administration Pty Ltd (in liquidation) is proper and reasonable, avoids costly further litigation, reflects a series of justifiable concessions on complex and contestable contractual issues, and is in the best interests of both companies' creditors—particularly given the existence of common creditors; accordingly, directions should be given that the liquidators are justified in entering into and performing their obligations under the Resolution Deed.

Court Disposition

Directions granted as sought to the Plaintiffs and Applicant; orders for costs in the liquidation.

Orders

  • ["The Court gives the directions sought in the Plaintiffs' Amended Interlocutory Process filed on 26 September 2017 and the Interlocutory Process of David Kerr filed on 10 August 2017." 'Costs of the applications are to be costs in the liquidation of each of Octaviar Limited (in liquidation) and Octaviar...