In the matter of Bonny Glen Fruits Pty Ltd [2019] NSWSC 1784

In the matter of Bonny Glen Fruits Pty Ltd [2019] NSWSC 1784

The Court approved the provisional liquidators' remuneration because the affidavit evidence, summaries and time records showed that the work had the necessary connection with the provisional liquidation and the powers conferred on the provisional liquidators; the work was required to conduct an ongoing business and deal with complex issues in the context of shareholder dispute; time-based costing was a legitimate starting point; and the remuneration sought was not disproportionate to the assets, work, nature and complexity of the provisional liquidation.

Jurisdiction
Australia
Judgment Date
02 December 2019
Procedural Posture
Corporations List Application by Provisional Liquidators for Approval of Remuneration / Interlocutory Process Filed 27 September 2019; Orders Made 2 December 2019
Outcome
Orders made approving provisional liquidators' remuneration under s 60-16 of the Insolvency Practice Schedule (Corporations); disbursement application under s 60-20 was not pressed and was deferred.
Legal Topics
['winding Up' 'provisional Liquidators' 'remuneration of External Administrators' 'time Costing' 'disbursements']
['corporations' 'insolvency'] ['winding Up' 'provisional Liquidators' 'remuneration of External Administrators' 'time Costing' 'disbursements']

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Procedural Posture

Corporations List Application by Provisional Liquidators for Approval of Remuneration / Interlocutory Process Filed 27 September 2019; Orders Made 2 December 2019

Legal Issues

  1. 1 ["Whether the provisional liquidators' remuneration for services from 27 November 2018 to 31 July 2019 should be approved under s 60-16 of the Insolvency Practice Schedule (Corporations)." 'Whether the work performed had the necessary connection with the provisional liquidation and the powers conferred on the provisional liquidators.' 'Whether remuneration calculated on a time-costing basis was reasonable and proportionate.' 'Whether disbursements containing a profit element should be approved under s 60-20 of the Insolvency Practice Schedule (Corporations).']

Ratio Decidendi

The Court approved the provisional liquidators' remuneration because the affidavit evidence, summaries and time records showed that the work had the necessary connection with the provisional liquidation and the powers conferred on the provisional liquidators; the work was required to conduct an ongoing business and deal with complex issues in the context of shareholder dispute; time-based costing was a legitimate starting point; and the remuneration sought was not disproportionate to the assets, work, nature and complexity of the provisional liquidation.

Court Disposition

Orders made approving provisional liquidators' remuneration under s 60-16 of the Insolvency Practice Schedule (Corporations); disbursement application under s 60-20 was not pressed and was deferred.

Orders

  • ['Orders 1-4 and 5 in the short minutes of order initialled by the Court were made.' "The Applicants' costs and expenses of the application were ordered to be costs and expenses of the First Defendant." "Liberty to restore on two business days' notice, including in respect of any application in relation to...