Goyal (liquidator), in the matter of OLI 1 Pty Ltd (in liq) [2020] FCA 450

Goyal (liquidator), in the matter of OLI 1 Pty Ltd (in liq) [2020] FCA 450

Approval was granted for the liquidators to enter into the litigation funding agreement pursuant to s 477(2B) of the Corporations Act 2001 (Cth) as it was a proper exercise of their powers, in the interests of creditors, and not ill-advised or improper. Confidentiality orders were appropriate due to the risk of prejudice to the administration of justice if commercial terms were disclosed to potential defendants.

Parties
Plaintiff: Rahul Goyal; Company: OLI 1 Pty Ltd (in liquidation); Liquidator: Jennifer Anne Nettleton; Funder: Premier Litigation Funding Pty Ltd as trustee for the Premier Litigation Funding Trust #2
Jurisdiction
Australia
Judgment Date
07 April 2020
Procedural Posture
Application by Liquidator for Approval / First Instance Application Determined on the Papers
Outcome
Application allowed
Legal Topics
Liquidator's Powers, Litigation Funding, Court Approval Under S 477(2 B) Corporations Act, Confidentiality Orders
Corporations Law Commercial Law Liquidator's Powers Litigation Funding Court Approval Under S 477(2 B) Corporations Act Confidentiality Orders

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Parties

Rahul Goyal

Plaintiff

OLI 1 Pty Ltd (in liquidation)

Company

Jennifer Anne Nettleton

Liquidator

Premier Litigation Funding Pty Ltd as trustee for the Premier Litigation Funding Trust #2

Funder

Procedural Posture

Application by Liquidator for Approval / First Instance Application Determined on the Papers

Legal Issues

  1. 1 Whether liquidators should be granted approval under s 477(2B) of the Corporations Act 2001 (Cth) to enter into a litigation funding deed
  2. 2 Whether confidentiality orders should be made for documents related to the funding arrangement

Ratio Decidendi

Approval was granted for the liquidators to enter into the litigation funding agreement pursuant to s 477(2B) of the Corporations Act 2001 (Cth) as it was a proper exercise of their powers, in the interests of creditors, and not ill-advised or improper. Confidentiality orders were appropriate due to the risk of prejudice to the administration of justice if commercial terms were disclosed to potential defendants.

Court Disposition

Application allowed

Orders

  • Approval is granted, nunc pro tunc, for the liquidators to accept the offer from the funder as set out in the specified letter.
  • Approval is granted for the liquidators to enter into a litigation funding deed on substantially similar terms to the draft agreement.