GlobalTel v MCI WorldCom [2002] NSWSC 748

GlobalTel v MCI WorldCom [2002] NSWSC 748

Payment into court of the amount representing the unassessed costs orders removed the applicant's status as a contingent or prospective creditor, so leave to apply for winding up was not warranted; even if status existed, discretionary considerations justified refusing leave.

Source-derived case information.

Jurisdiction
Australia
Judgment Date
23 August 2002
Procedural Posture
Application for Leave to Wind Up in Insolvency / Judgment on Notice of Motion
Outcome
Application for leave dismissed
Legal Topics
['winding Up' 'contingent or Prospective Creditors' 'payment Into Court' 'discretion in Granting Leave']
['corporations Law'] ['winding Up' 'contingent or Prospective Creditors' 'payment Into Court' 'discretion in Granting Leave']

Source-derived case record

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Procedural Posture

Application for Leave to Wind Up in Insolvency / Judgment on Notice of Motion

Legal Issues

  1. 1 ['Whether GlobalTel is entitled to leave as a contingent or prospective creditor under s.459P(2) of the Corporations Act 2001 to apply for the winding up in insolvency of MCI WorldCom Australia Pty Ltd.' "Effect of payment into court of the amount subject to the prospective or contingent claim on applicant's status." 'Appropriate exercise of discretion under s.459P(2) in granting or refusing leave.']

Ratio Decidendi

Payment into court of the amount representing the unassessed costs orders removed the applicant's status as a contingent or prospective creditor, so leave to apply for winding up was not warranted; even if status existed, discretionary considerations justified refusing leave.

Court Disposition

Application for leave dismissed

Orders

  • ['Application for leave by GlobalTel is dismissed.' 'Plaintiff (GlobalTel) to pay costs of the motion to MCI WorldCom Australia Pty Ltd on the ordinary basis.' 'Undertaking given by GlobalTel concerning payment into trust account is discharged and MCI released from it.']