In the matter of Plutus Payroll Australia Pty Limited (in liquidation) [2019] NSWSC 706

In the matter of Plutus Payroll Australia Pty Limited (in liquidation) [2019] NSWSC 706

The Deed of Indemnity was approved nunc pro tunc because it funded liquidation work that otherwise could not be undertaken, would not unduly delay the winding up, and promoted the interests of the general body of creditors despite priority and consultation provisions in favour of the Deputy Commissioner of Taxation. The compromise of the CDMS debt was approved nunc pro tunc because the liquidators had investigated the claim, identified real litigation and recovery risks, and there was no reason to doubt their good faith, legal approach, or the prudence of the proposed compromise.

Jurisdiction
Australia
Judgment Date
20 March 2019
Procedural Posture
Corporations Application in Winding Up / Interlocutory Process Seeking Approval Nunc Pro Tunc
Outcome
Approvals granted nunc pro tunc under ss 477(2A) and 477(2B) of the Corporations Act 2001 (Cth).
Legal Topics
["liquidators' Powers" 'approval to Enter Agreement' 'compromise of Debt' 'deed of Indemnity' 'nunc Pro Tunc Approval' 'priority for Litigation Funding']
['corporations' 'insolvency'] ["liquidators' Powers" 'approval to Enter Agreement' 'compromise of Debt' 'deed of Indemnity' 'nunc Pro Tunc Approval' 'priority for Litigation Funding']

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Procedural Posture

Corporations Application in Winding Up / Interlocutory Process Seeking Approval Nunc Pro Tunc

Legal Issues

  1. 1 ['Whether the liquidators should be granted approval nunc pro tunc under s 477(2B) of the Corporations Act 2001 (Cth) to enter into a Deed of Indemnity with the Deputy Commissioner of Taxation.' "Whether the Deed of Indemnity, including consultation arrangements and priority provisions in favour of the Deputy Commissioner of Taxation, promoted creditors' interests and should be approved." 'Whether the liquidators should be granted approval nunc pro tunc under s 477(2A) of the Corporations Act 2001 (Cth) to compromise a debt of $288,325.73 purportedly owing by CDMS Investments Pty Limited to SAI Solutions Australia Pty Ltd (in liq).']

Ratio Decidendi

The Deed of Indemnity was approved nunc pro tunc because it funded liquidation work that otherwise could not be undertaken, would not unduly delay the winding up, and promoted the interests of the general body of creditors despite priority and consultation provisions in favour of the Deputy Commissioner of Taxation. The compromise of the CDMS debt was approved nunc pro tunc because the liquidators had investigated the claim, identified real litigation and recovery risks, and there was no reason to doubt their good faith, legal approach, or the prudence of the proposed compromise.

Court Disposition

Approvals granted nunc pro tunc under ss 477(2A) and 477(2B) of the Corporations Act 2001 (Cth).

Orders

  • ['Approval for the liquidators to enter into the Deed of Indemnity was granted nunc pro tunc under s 477(2B) of the Corporations Act 2001 (Cth).' 'Approval for the liquidators to compromise the CDMS debt was granted nunc pro tunc under s 477(2A) of the Corporations Act 2001 (Cth).' 'The costs of the applications are...