In the matter of Steel Tigers Pty Ltd (in liq) [2014] NSWSC 1748

In the matter of Steel Tigers Pty Ltd (in liq) [2014] NSWSC 1748

The evidence established a real risk that the vehicles would be further transferred or concealed if notice were given and showed a proper basis to conclude that vehicles in which Steel Tigers or OSM claimed rights had been removed or purportedly transferred so as to prevent or delay the liquidators taking control. Purported transfers did not preclude s 530C relief, and in any event the vehicles should be preserved under UCPR r 25.3 and the Court's inherent jurisdiction. Warrants and preservation orders were therefore justified, subject to undertakings, while disclosure and evidence-filing orders were not appropriate ex parte.

Jurisdiction
Australia
Judgment Date
28 November 2014
Procedural Posture
Corporations Winding Up Application Concerning Liquidators' Warrants and Preservation of Company Property / Interlocutory Ex Parte Applications
Outcome
Warrants and preservation relief granted in part on the ex parte interlocutory applications; disclosure and evidence-filing orders refused on an ex parte basis.
Legal Topics
['winding Up' "liquidators' Powers" 'warrants to Search for and Seize Company Property' 'preservation of Property' 'ex Parte Relief' 'purported Transfer of Company Property' 'undertakings as to Damages']
['corporations Law' 'insolvency' 'civil Procedure' 'personal Property Securities'] ['winding Up' "liquidators' Powers" 'warrants to Search for and Seize Company Property' 'preservation of Property' 'ex Parte Relief' 'purported Transfer of Company Property' 'undertakings as to Damages']

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Procedural Posture

Corporations Winding Up Application Concerning Liquidators' Warrants and Preservation of Company Property / Interlocutory Ex Parte Applications

Legal Issues

  1. 1 ['Whether the applications should proceed ex parte because of a real risk of further disposal or concealment of the vehicles.' 'Whether warrants should issue under Corporations Act 2001 (Cth) s 530C for vehicles said to be property of Steel Tigers Pty Ltd (in liq) or OSM Transport Pty Ltd (in liq).' 'Whether purported transfers of vehicles to other entities precluded the issue of warrants under s 530C.' "Whether orders should be made under Uniform Civil Procedure Rules 2005 (NSW) r 25.3 or the Court's inherent jurisdiction to preserve and take custody of the vehicles." 'Whether the warrants should include detailed conditions and whether undertakings as to damages should be required.' 'Whether disclosure orders and orders requiring defendants to file evidence should be made on an ex parte basis.']

Ratio Decidendi

The evidence established a real risk that the vehicles would be further transferred or concealed if notice were given and showed a proper basis to conclude that vehicles in which Steel Tigers or OSM claimed rights had been removed or purportedly transferred so as to prevent or delay the liquidators taking control. Purported transfers did not preclude s 530C relief, and in any event the vehicles should be preserved under UCPR r 25.3 and the Court's inherent jurisdiction. Warrants and preservation orders were therefore justified, subject to undertakings, while disclosure and evidence-filing orders were not appropriate ex parte.

Court Disposition

Warrants and preservation relief granted in part on the ex parte interlocutory applications; disclosure and evidence-filing orders refused on an ex parte basis.

Orders

  • ['Warrants issued under Corporations Act 2001 (Cth) s 530C authorising liquidators to search for and seize relevant vehicles.' "Orders made authorising the liquidators to take custody of relevant vehicles to preserve them under Uniform Civil Procedure Rules 2005 (NSW) r 25.3 and the Court's inherent jurisdiction."...