In the matter of J & Lee Property Investment Group Pty Ltd (No 2) [2018] NSWSC 1728

In the matter of J & Lee Property Investment Group Pty Ltd (No 2) [2018] NSWSC 1728

Receivers were empowered to sell the properties to convert assets to cash so that undoubted liabilities can be discharged and further interest avoided; further orders are necessary before proceeds may be distributed, in view of uncertainties regarding unitholders and trust status.

Parties
First Applicant: Peter Hillig; Second Applicant: Michael John Morris Smith; First Respondent: New South Wales Crime Commission; Second Respondent: Seong Won Lee
Jurisdiction
Australia
Judgment Date
12 November 2018
Procedural Posture
Application for Directions by Receivers in External Administration / Interlocutory Application/order
Outcome
Orders made empowering receiver to sell trust properties, with sale orders stayed until satisfactory evidence of service on second respondent is filed; liberty to apply granted; application for distribution adjourned for further mention.
Legal Topics
External Administration, Appointment and Powers of Receivers, Sale of Trust Property, Distribution of Trust Assets, Appointment of Trustee
Corporations Law Equity Trust Law External Administration Appointment and Powers of Receivers Sale of Trust Property Distribution of Trust Assets Appointment of Trustee

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Parties

Peter Hillig

First Applicant

Michael John Morris Smith

Second Applicant

New South Wales Crime Commission

First Respondent

Seong Won Lee

Second Respondent

Procedural Posture

Application for Directions by Receivers in External Administration / Interlocutory Application/order

Legal Issues

  1. 1 Whether receivers should be empowered to sell trust property belonging to company in liquidation
  2. 2 Whether further orders are required before proceeds of sale can be distributed
  3. 3 Who constitutes the unitholders of the trust and if a new trustee should be appointed

Ratio Decidendi

Receivers were empowered to sell the properties to convert assets to cash so that undoubted liabilities can be discharged and further interest avoided; further orders are necessary before proceeds may be distributed, in view of uncertainties regarding unitholders and trust status.

Court Disposition

Orders made empowering receiver to sell trust properties, with sale orders stayed until satisfactory evidence of service on second respondent is filed; liberty to apply granted; application for distribution adjourned for further mention.

Orders

  • Orders in accordance with paragraphs 1 and 2 of the interlocutory process dated 25 October 2018 (empowering sale of properties).
  • Operation of orders stayed until 7 days after affidavit(s) of service on Seong Won Lee and written submissions on service are filed.