Mercator Property Consultants Pty Ltd v Christmas Island Resort Pty Ltd & Ors [1998] FCA 896

Mercator Property Consultants Pty Ltd v Christmas Island Resort Pty Ltd & Ors [1998] FCA 896

It was just and convenient to appoint a receiver and manager because the first respondent's major asset, its Casino licence, was in increasing danger of cancellation or revocation, the applicant had not received all information sought about the company's affairs, there was an arguable case that the affairs of the...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
29 July 1998
Procedural Posture
Application Pursuant to S 57 of the Federal Court of Australia Act 1976 (cth) for Interlocutory Appointment of a Receiver and Manager / Interlocutory Application
Outcome
Receiver and manager appointed until further order; security dispensed with; applicant gave undertaking as to compensation; costs of the notice of motion reserved.
Legal Topics
['appointment of Receiver and Manager' 'just or Convenient Test' 'security for Receiver' 'undertaking as to Damages']
['procedure' 'corporations'] ['appointment of Receiver and Manager' 'just or Convenient Test' 'security for Receiver' 'undertaking as to Damages']

Source-derived case record

Summary, issues, holding and outcome

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Procedural Posture

Application Pursuant to S 57 of the Federal Court of Australia Act 1976 (cth) for Interlocutory Appointment of a Receiver and Manager / Interlocutory Application

Legal Issues

  1. 1 ['Whether it was just or convenient under s 57(1) of the Federal Court of Australia Act 1976 (Cth) to appoint a receiver and manager of Christmas Island Resort Pty Ltd by interlocutory order.' 'Whether the receiver and manager should be required to file security under O 26 r 3(2) of the Federal Court Rules.' 'Whether the applicant should provide the usual undertaking as to damages.']

Ratio Decidendi

It was just and convenient to appoint a receiver and manager because the first respondent's major asset, its Casino licence, was in increasing danger of cancellation or revocation, the applicant had not received all information sought about the company's affairs, there was an arguable case that the affairs of the first respondent were being conducted for the benefit of the major shareholder rather than the company as a whole, appointment would preserve the value of the applicant's shareholding if settlement did not proceed, and there were unpaid creditors in excess of $2,000,000. Because the appointment was interlocutory and affected control of all assets and undertakings of the first...

Court Disposition

Receiver and manager appointed until further order; security dispensed with; applicant gave undertaking as to compensation; costs of the notice of motion reserved.

Orders

  • ['Mr Jeffrey Herbert be appointed receiver and manager of the property of Christmas Island Resort Pty Ltd until further order.' 'The receiver and manager shall have the unfettered power to conduct the business and management of CIR in such manner as he thinks most beneficial to the interests of the members of CIR as...