In the matter of SPG Projects Pty Ltd (in liq) [2020] NSWSC 34

In the matter of SPG Projects Pty Ltd (in liq) [2020] NSWSC 34

An order for a court-ordered winding up should not be made where the company is already in a creditors' voluntary winding up and there is no demonstrated benefit to the administration. There was no evidence raising doubt as to the validity of the creditors' resolution and no application for leave to proceed with costs. The application should therefore be dismissed and no order as to costs made.

Parties
Plaintiff: Sky 5 Pty Ltd; Defendant: SPG Projects Pty Ltd (in liq); Supporting Creditor: Winterlong Project Services Pty Ltd
Jurisdiction
Australia
Judgment Date
05 February 2020
Procedural Posture
Corporations Winding Up Application / Hearing and Judgment on Application for Court Ordered Winding Up
Outcome
Application dismissed
Legal Topics
Creditors' Voluntary Winding Up, Court Ordered Winding Up, Presumption of Insolvency, Costs in Liquidation
Corporations Law Creditors' Voluntary Winding Up Court Ordered Winding Up Presumption of Insolvency Costs in Liquidation

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Parties

Sky 5 Pty Ltd

Plaintiff

SPG Projects Pty Ltd (in liq)

Defendant

Winterlong Project Services Pty Ltd

Supporting Creditor

Procedural Posture

Corporations Winding Up Application / Hearing and Judgment on Application for Court Ordered Winding Up

Legal Issues

  1. 1 Whether a court-ordered winding up should be made when the company is already in creditors' voluntary winding up
  2. 2 Whether any benefit to administration would be achieved by a court-ordered winding up under s 459A of the Corporations Act 2001 (Cth)
  3. 3 Whether the applicant should be granted costs

Ratio Decidendi

An order for a court-ordered winding up should not be made where the company is already in a creditors' voluntary winding up and there is no demonstrated benefit to the administration. There was no evidence raising doubt as to the validity of the creditors' resolution and no application for leave to proceed with costs. The application should therefore be dismissed and no order as to costs made.

Court Disposition

Application dismissed

Orders

  • Originating process filed 18 October 2019 be dismissed.
  • There is no order as to costs, each party to bear its own costs.