In the matter of Lewis Paints Pty Ltd [2021] NSWSC 994

In the matter of Lewis Paints Pty Ltd [2021] NSWSC 994

The Court was satisfied that an order terminating the winding up should be made because there was sufficient evidence of the nature and extent of the company's creditors, no currently outstanding creditors, the petitioning creditor and liquidator did not oppose termination, the liquidator's fees had been paid, the company did not trade and did not intend to trade, the evidence established solvency, the winding up resulted from inadvertence rather than misconduct, and there was nothing suggesting conduct contrary to commercial morality or the public interest.

Jurisdiction
Australia
Judgment Date
26 July 2021
Procedural Posture
Application by Interlocutory Process Under S 482(1) of the Corporations Act 2001 (cth) to Terminate the Winding Up of Lewis Paints Pty Ltd / Principal Judgment
Outcome
Application granted; winding up of Lewis Paints Pty Ltd terminated.
Legal Topics
['winding Up' 'termination of Winding Up' 'solvency' "creditors' Statutory Demand" "directors' Statutory Duties"]
['corporations Law' 'equity'] ['winding Up' 'termination of Winding Up' 'solvency' "creditors' Statutory Demand" "directors' Statutory Duties"]

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Procedural Posture

Application by Interlocutory Process Under S 482(1) of the Corporations Act 2001 (cth) to Terminate the Winding Up of Lewis Paints Pty Ltd / Principal Judgment

Legal Issues

  1. 1 ['Whether the Court should exercise its discretion under s 482(1) of the Corporations Act 2001 (Cth) to terminate the winding up of Lewis Paints Pty Ltd.' 'Whether the company was insolvent or whether the state of affairs requiring the winding up no longer existed.' 'Whether creditors, contributories and the liquidator opposed termination of the winding up.' 'Whether there was any non-compliance with statutory duties or conduct contrary to commercial morality or the public interest.']

Ratio Decidendi

The Court was satisfied that an order terminating the winding up should be made because there was sufficient evidence of the nature and extent of the company's creditors, no currently outstanding creditors, the petitioning creditor and liquidator did not oppose termination, the liquidator's fees had been paid, the company did not trade and did not intend to trade, the evidence established solvency, the winding up resulted from inadvertence rather than misconduct, and there was nothing suggesting conduct contrary to commercial morality or the public interest.

Court Disposition

Application granted; winding up of Lewis Paints Pty Ltd terminated.

Orders

  • ['Order pursuant to s 482(1) of the Corporations Act 2001 that the winding up of the defendant company be terminated with effect from today from the making of this order.' 'There be no order as to costs.' 'These orders be entered forthwith.']