Hundy (liquidator), in the matter of 3 Property Group 13 Pty Ltd (in liquidation) [2022] FCA 1216

Hundy (liquidator), in the matter of 3 Property Group 13 Pty Ltd (in liquidation) [2022] FCA 1216

Leave to be heard on liquidator's applications for approval of funding agreements is not warranted solely due to creditor or claimed creditor status; discretionary leave may be granted only where evidentiary basis exists for reasonable suspicion of impropriety or disadvantage. Here, intervening parties' case is largely speculative; leave is granted on a strictly limited basis permitting reliance only on specified written submissions and affidavit portions, with broader participation denied.

Jurisdiction
Australia
Judgment Date
13 October 2022
Procedural Posture
Interlocutory Application / Ruling on Leave to Be Heard and Costs
Outcome
Intervening parties granted leave to be heard on strictly limited basis; interlocutory applications otherwise dismissed; costs ordered against intervening parties.
Legal Topics
['liquidators' 'litigation Funding' 'leave to Be Heard' 'approval of Funding Agreements' 'creditor Rights']
['corporations' 'insolvency'] ['liquidators' 'litigation Funding' 'leave to Be Heard' 'approval of Funding Agreements' 'creditor Rights']

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Procedural Posture

Interlocutory Application / Ruling on Leave to Be Heard and Costs

Legal Issues

  1. 1 ["Whether intervening parties should be granted leave to be heard in respect of the liquidator's applications under s 477(2B) of Corporations Act for retrospective approval of funding agreements" 'Whether mere status as creditor, claimed creditor, or officer of a creditor justifies leave' 'Extent and limits of access and participation for intervening parties']

Ratio Decidendi

Leave to be heard on liquidator's applications for approval of funding agreements is not warranted solely due to creditor or claimed creditor status; discretionary leave may be granted only where evidentiary basis exists for reasonable suspicion of impropriety or disadvantage. Here, intervening parties' case is largely speculative; leave is granted on a strictly limited basis permitting reliance only on specified written submissions and affidavit portions, with broader participation denied.

Court Disposition

Intervening parties granted leave to be heard on strictly limited basis; interlocutory applications otherwise dismissed; costs ordered against intervening parties.

Orders

  • ['The applicants in ACD 14 of 2022 and ACD 16 of 2022 granted leave pursuant to r 2.13(1) of Federal Court (Corporations) Rules 2000 (Cth) to be heard in those proceedings without becoming parties, subject to limitations.' 'Leave limited to reliance on specified written submissions and identified affidavit portions;...