In the matter of Karim Pty Limited (in liq) [2020] NSWSC 1678

In the matter of Karim Pty Limited (in liq) [2020] NSWSC 1678

The Court determined the liquidators' remuneration at $76,491 (exclusive of GST) because the liquidators provided sufficient information to assess the claim, the work was performed properly in the due course of the winding up, it was reasonable to carry out the work, the staff seniority and charge-out rates were appropriate and commercially competitive, and time charging was appropriate in the circumstances despite the total remuneration being about 8 per cent of realisations.

Jurisdiction
Australia
Judgment Date
26 November 2020
Procedural Posture
Application Under S 60 10 of the Insolvency Practice Schedule (corporations) for Determination of Liquidators' Remuneration / Principal Judgment on Remuneration Application
Outcome
Application granted; liquidators' remuneration determined and costs ordered to be costs in the winding up.
Legal Topics
['winding Up' 'company in Liquidation' "liquidators' Remuneration" 'reasonableness of Remuneration' 'insolvency Practice Schedule (corporations) S 60 10' 'insolvency Practice Schedule (corporations) S 60 12']
['corporations' 'insolvency'] ['winding Up' 'company in Liquidation' "liquidators' Remuneration" 'reasonableness of Remuneration' 'insolvency Practice Schedule (corporations) S 60 10' 'insolvency Practice Schedule (corporations) S 60 12']

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Procedural Posture

Application Under S 60 10 of the Insolvency Practice Schedule (corporations) for Determination of Liquidators' Remuneration / Principal Judgment on Remuneration Application

Legal Issues

  1. 1 ['Whether the Court should determine the remuneration of the plaintiffs as liquidators of Karim Pty Limited (in liq) under s 60-10(1)(c) of the Insolvency Practice Schedule (Corporations).' 'Whether the claimed remuneration of $76,491 (exclusive of GST) for the period 8 June 2019 to 3 July 2020 was reasonable having regard to the criteria in s 60-12 of the Insolvency Practice Schedule (Corporations).']

Ratio Decidendi

The Court determined the liquidators' remuneration at $76,491 (exclusive of GST) because the liquidators provided sufficient information to assess the claim, the work was performed properly in the due course of the winding up, it was reasonable to carry out the work, the staff seniority and charge-out rates were appropriate and commercially competitive, and time charging was appropriate in the circumstances despite the total remuneration being about 8 per cent of realisations.

Court Disposition

Application granted; liquidators' remuneration determined and costs ordered to be costs in the winding up.

Orders

  • ['That the remuneration of the plaintiffs, as liquidators of Karim Pty Limited (in liq), for the period 8 June 2019 to 3 July 2020 is determined to be $76,491 (exclusive of GST).' "That the plaintiffs' costs of this application (save for the costs dealt with in the costs order made by Black J on 13 November 2020)...