Parkinson v Morkaya [2008] NSWSC 1183

Parkinson v Morkaya [2008] NSWSC 1183

As there is nothing to distinguish the fitness, competence or probity of the various candidates other than one being more vulnerable to an allegation of bias, the proper course is to appoint the applicant's nominee in accordance with established principle, reinforced by considerations of relative cost.

Jurisdiction
Australia
Judgment Date
20 October 2008
Procedural Posture
Corporate Insolvency/provisional Liquidation Application / Interlocutory Application; Appointment of Replacement Provisional Liquidator
Outcome
Application allowed; plaintiff’s nominee appointed as provisional liquidator; costs of respondent’s unsuccessful application to be plaintiff’s costs in the proceedings.
Legal Topics
['appointment of Liquidators' 'provisional Liquidation' 'practice and Procedure']
['corporations Law' 'equity'] ['appointment of Liquidators' 'provisional Liquidation' 'practice and Procedure']

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Procedural Posture

Corporate Insolvency/provisional Liquidation Application / Interlocutory Application; Appointment of Replacement Provisional Liquidator

Legal Issues

  1. 1 ['Who should be appointed as provisional liquidator after resignation of original appointee' "Whether respondent's nominee should be preferred over applicant's nominee when both are qualified" 'Relevance of perceived bias or connection to a party in appointment']

Ratio Decidendi

As there is nothing to distinguish the fitness, competence or probity of the various candidates other than one being more vulnerable to an allegation of bias, the proper course is to appoint the applicant's nominee in accordance with established principle, reinforced by considerations of relative cost.

Court Disposition

Application allowed; plaintiff’s nominee appointed as provisional liquidator; costs of respondent’s unsuccessful application to be plaintiff’s costs in the proceedings.

Orders

  • ['Mr Michael John Morris Smith be appointed liquidator of Ativa Pty Ltd provisionally, with the powers referred to in and otherwise subject to the orders made on 2 October 2008.' 'Costs of Ms Morkaya’s application be Mr Parkinson’s costs in the proceedings, so that if an order is made in his favour for costs he will...