In the matter of Australasian Barrister Chambers Pty Ltd [2019] NSWSC 1886

In the matter of Australasian Barrister Chambers Pty Ltd [2019] NSWSC 1886

The liquidator's evidence, including work-in-progress records, ARITA categorisation and affidavit explanation, established that the work performed and anticipated was reasonably necessary, performed over appropriate periods, reasonable in time spent and rates, and proportionate in the context of a complex liquidation involving trust property, a right of indemnity, statutory obligations and extensive litigation not controlled by the liquidator. Although approval would leave little return to creditors, the costs were justified by the complexity and litigation, and a further future remuneration application would be disproportionate.

Jurisdiction
Australia
Judgment Date
23 December 2019
Procedural Posture
Application Under S 473 of the Corporations Act 2001 (cth) to Fix a Liquidator's Past and Future Remuneration in a Winding Up / Hearing of Amended Interlocutory Process Dated 28 November 2019
Outcome
Orders to be made approving the liquidator's remuneration.
Legal Topics
['winding Up' "liquidators' Remuneration" 'past and Future Remuneration' 'court Approval of Remuneration' 'proportionality' 'opposed Remuneration Application']
['corporations' 'insolvency'] ['winding Up' "liquidators' Remuneration" 'past and Future Remuneration' 'court Approval of Remuneration' 'proportionality' 'opposed Remuneration Application']

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Procedural Posture

Application Under S 473 of the Corporations Act 2001 (cth) to Fix a Liquidator's Past and Future Remuneration in a Winding Up / Hearing of Amended Interlocutory Process Dated 28 November 2019

Legal Issues

  1. 1 ['Whether s 473 of the Corporations Act 2001 (Cth) continued to apply to remuneration of a liquidator appointed before the commencement of the Insolvency Law Reform Act 2016 (Cth).' 'Whether the liquidator established that the claimed past remuneration of $72,797 excluding GST and $10,438 excluding GST was fair and reasonable.' 'Whether anticipated future remuneration of $20,350 excluding GST to completion of the winding up should be approved.' 'Whether issues of proportionality, limited remaining assets, complexity and litigation warranted approval of the remuneration sought.']

Ratio Decidendi

The liquidator's evidence, including work-in-progress records, ARITA categorisation and affidavit explanation, established that the work performed and anticipated was reasonably necessary, performed over appropriate periods, reasonable in time spent and rates, and proportionate in the context of a complex liquidation involving trust property, a right of indemnity, statutory obligations and extensive litigation not controlled by the liquidator. Although approval would leave little return to creditors, the costs were justified by the complexity and litigation, and a further future remuneration application would be disproportionate.

Court Disposition

Orders to be made approving the liquidator's remuneration.

Orders

  • ["Approve the liquidator's remuneration of $72,797 exclusive of GST for the period from 8 December 2015 to 31 July 2019." "Approve the liquidator's remuneration of $10,438 excluding GST for the period from 1 August 2019 to 17 September 2019." "Approve the liquidator's future remuneration of $20,350 excluding GST for...