In the matter of Mudgee Dolomite & Lime Pty Ltd [2021] NSWSC 984

In the matter of Mudgee Dolomite & Lime Pty Ltd [2021] NSWSC 984

The Court approved the indemnity and security agreement under s 477(2B) because the proposed cross appeal, if successful, could benefit the company financially and, if unsuccessful, the company and liquidators were sufficiently protected by the agreed indemnity and security. The Court also approved the liquidators' remuneration because the evidence established that the work was necessary, properly performed and reasonable having regard to the complexity of the liquidation, the ongoing trading of the specialised business, the assets involved, and the absence of opposition from notified stakeholders.

Jurisdiction
Australia
Judgment Date
19 July 2021
Procedural Posture
Corporations Winding Up Application Concerning Liquidators' Approval to Enter an Indemnity and Security Agreement and Liquidators' Remuneration / Interlocutory Processes Referred by the Corporations List Judge
Outcome
Orders made in accordance with the Short Minutes of Order; s 477(2B) approval and remuneration approval granted.
Legal Topics
['winding Up' "liquidators' Powers" "liquidators' Remuneration" 'indemnity and Security for Costs' 'notification Requirements']
['corporations' 'insolvency'] ['winding Up' "liquidators' Powers" "liquidators' Remuneration" 'indemnity and Security for Costs' 'notification Requirements']

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Procedural Posture

Corporations Winding Up Application Concerning Liquidators' Approval to Enter an Indemnity and Security Agreement and Liquidators' Remuneration / Interlocutory Processes Referred by the Corporations List Judge

Legal Issues

  1. 1 ['Whether approval should be granted under s 477(2B) of the Corporations Act 2001 (Cth) for the liquidators to enter into an indemnity and security agreement with Brian Murdoch in relation to a proposed cross appeal.' "Whether the liquidators' remuneration of $1,356,245.00 excluding GST for work performed from 8 December 2020 to 4 April 2021 should be approved under s 60-10(1)(c) of the Insolvency Practice Schedule (Corporations)." 'Whether requirements to notify certain parties under rule 9.2(2)(a)-(d) and ASIC under rule 2.8(3) of the Supreme Court (Corporations) Rules 1999 (NSW), if applicable, should be dispensed with.']

Ratio Decidendi

The Court approved the indemnity and security agreement under s 477(2B) because the proposed cross appeal, if successful, could benefit the company financially and, if unsuccessful, the company and liquidators were sufficiently protected by the agreed indemnity and security. The Court also approved the liquidators' remuneration because the evidence established that the work was necessary, properly performed and reasonable having regard to the complexity of the liquidation, the ongoing trading of the specialised business, the assets involved, and the absence of opposition from notified stakeholders.

Court Disposition

Orders made in accordance with the Short Minutes of Order; s 477(2B) approval and remuneration approval granted.

Orders

  • ['Pursuant to rule 6.24 of the Uniform Civil Procedure Rules 2005 (NSW), Jennifer Nettleton and Rahul Goyal in their capacity as joint and several liquidators of Mudgee Dolomite & Lime Pty Limited (in liquidation) ACN 076 313 034 be joined as the second plaintiffs in these proceedings.' 'Pursuant to s 477(2B) of the...