Vardy (liquidator), in the matter of Bondi Pizza Pty Ltd (in liq) v Ruck [2022] FCA 287

Vardy (liquidator), in the matter of Bondi Pizza Pty Ltd (in liq) v Ruck [2022] FCA 287

It is appropriate in the circumstances to grant approval nunc pro tunc under ss 477(2A) and (2B) of the Corporations Act for the liquidator's entry into the Deed of Settlement and Release and to declare it not invalid for lack of prior approval, given the commercial reasonableness of the agreement and absence of evidence warranting court intervention, and to order suppression of the deed to prevent prejudice to justice.

Parties
First Plaintiff (liquidator): Darren John Vardy; Second Plaintiff: Bondi Pizza Pty Ltd (in liquidation); Defendant: Mark Jeremy Ruck
Jurisdiction
Australia
Judgment Date
23 March 2022
Procedural Posture
Interlocutory Application / Final Judgment and Orders
Outcome
Application granted, proceedings dismissed with no order as to costs
Legal Topics
Liquidator Approval of Compromise, Settlement Agreement, Suppression Orders, Retrospective Court Approval
Corporations Law Practice and Procedure Liquidator Approval of Compromise Settlement Agreement Suppression Orders Retrospective Court Approval

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 13 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Darren John Vardy

First Plaintiff (liquidator)

Bondi Pizza Pty Ltd (in liquidation)

Second Plaintiff

Mark Jeremy Ruck

Defendant

Procedural Posture

Interlocutory Application / Final Judgment and Orders

Legal Issues

  1. 1 Whether court approval should be granted under ss 477(2A) and 477(2B) of the Corporations Act 2001 (Cth) for entry into the Deed of Settlement and Release nunc pro tunc
  2. 2 Whether a declaration should be made that the Deed of Settlement and Release is not invalid due to lack of prior approval
  3. 3 Whether suppression orders should be made under s 37AF of the Federal Court of Australia Act 1976 (Cth) to protect confidentiality

Ratio Decidendi

It is appropriate in the circumstances to grant approval nunc pro tunc under ss 477(2A) and (2B) of the Corporations Act for the liquidator's entry into the Deed of Settlement and Release and to declare it not invalid for lack of prior approval, given the commercial reasonableness of the agreement and absence of evidence warranting court intervention, and to order suppression of the deed to prevent prejudice to justice.

Court Disposition

Application granted, proceedings dismissed with no order as to costs

Orders

  • First plaintiff authorised nunc pro tunc under ss 477(2A) and (2B) Corporations Act 2001 (Cth) to enter Deed of Settlement and Release
  • Suppression order pursuant to s 37AF Federal Court of Australia Act 1976 (Cth) keeping Exhibit 'DJV-02' confidential until all related litigation is concluded or otherwise ordered