Waste Recycling and Processing Services of NSW v Local Government Recycling Co-operative [1999] NSWSC 654

Waste Recycling and Processing Services of NSW v Local Government Recycling Co-operative [1999] NSWSC 654

Because SMS was a supporting creditor whose role was relatively passive, but whose attendance was justified to protect its position if the applicant's debt were successfully attacked, justice required a limited costs order: SMS was awarded costs for two hearing days, with the priority accorded by s556(1)(b) of the...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
22 June 1999
Procedural Posture
Costs in Winding Up Proceedings / Costs Determination After Winding Up
Outcome
Supporting creditor awarded two days' costs.
Legal Topics
['winding Up' 'costs' 'supporting Creditor Costs' 'priority of Costs in Liquidation']
['corporations Law' 'civil Procedure'] ['winding Up' 'costs' 'supporting Creditor Costs' 'priority of Costs in Liquidation']

Source-derived case record

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Procedural Posture

Costs in Winding Up Proceedings / Costs Determination After Winding Up

Legal Issues

  1. 1 ['Whether a supporting creditor who played a fairly passive role in the eventual winding up of a company should be allowed costs.' 'If costs should be allowed to the supporting creditor, to what extent and with what priority.']

Ratio Decidendi

Because SMS was a supporting creditor whose role was relatively passive, but whose attendance was justified to protect its position if the applicant's debt were successfully attacked, justice required a limited costs order: SMS was awarded costs for two hearing days, with the priority accorded by s556(1)(b) of the Corporations Law.

Court Disposition

Supporting creditor awarded two days' costs.

Orders

  • ['SMS Municipal Services Pty Ltd is awarded the costs of two days of the hearing, being the first two days.' 'Those costs are to enjoy the priority accorded by s556(1)(b) of the Corporations Law.']