In the matter of Cosmopolitan Constructions Pty Limited (in liquidation) [2013] NSWSC 780

In the matter of Cosmopolitan Constructions Pty Limited (in liquidation) [2013] NSWSC 780

Crane Distribution Limited, by voting the entire amount of its debt at the meeting of creditors without valuing its security, surrendered any security it held over property of Cosmopolitan Constructions Pty Limited (in liquidation), pursuant to regulation 5.6.24(3) of the Corporations Regulations 2001 (Cth), and is entitled to prove for the full amount of its debt in the winding up.

Parties
Plaintiffs: Nicholas Craig Malanos and Christopher Damien Darin as liquidators of Cosmopolitan Constructions Pty Limited (in liquidation); Defendant: Crane Distribution Limited
Jurisdiction
Australia
Judgment Date
14 May 2013
Procedural Posture
Interlocutory Application / Declaration and Costs Order
Outcome
Declaration made and costs order granted.
Legal Topics
Winding Up, Liquidators, Secured Creditors, Surrendered Security, Directions From Court
Corporations Law Winding Up Liquidators Secured Creditors Surrendered Security Directions From Court

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Parties

Nicholas Craig Malanos and Christopher Damien Darin as liquidators of Cosmopolitan Constructions Pty Limited (in liquidation)

Plaintiffs

Crane Distribution Limited

Defendant

Procedural Posture

Interlocutory Application / Declaration and Costs Order

Legal Issues

  1. 1 Whether Crane Distribution Limited surrendered any security it may have held over property of Cosmopolitan Constructions Pty Limited (in liquidation) by voting the whole debt at the creditors' meeting

Ratio Decidendi

Crane Distribution Limited, by voting the entire amount of its debt at the meeting of creditors without valuing its security, surrendered any security it held over property of Cosmopolitan Constructions Pty Limited (in liquidation), pursuant to regulation 5.6.24(3) of the Corporations Regulations 2001 (Cth), and is entitled to prove for the full amount of its debt in the winding up.

Court Disposition

Declaration made and costs order granted.

Orders

  • Declare that the defendant, Crane Distribution Limited, has surrendered any security it may have held over any of the property of Cosmopolitan Constructions Pty Limited (in liquidation).
  • The plaintiffs' costs and expenses of the application be paid out of the assets of the company.