Metledge v Owners – Strata Plan 87778 & Anor [2020] NSWSC 891

Metledge v Owners – Strata Plan 87778 & Anor [2020] NSWSC 891

The winding-up order and appointment of liquidators were set aside because the company was solvent, evidence established deliberate non-notification to the solicitor of the statutory demand and process, and failure to advise was the principal cause of costs. The Owners Corporation was ordered to bear costs, with the burden not to fall on lot 18, the company's unit.

Jurisdiction
Australia
Judgment Date
07 July 2020
Procedural Posture
Corporations – Winding Up / Post Winding Up Order; Interlocutory Application to Set Aside Winding Up Order
Outcome
Setting aside of winding-up order and related orders; costs orders; directions for amended process.
Legal Topics
['winding Up Proceedings' 'interlocutory Applications' 'costs Orders' 'service of Process' 'strata Levy Disputes' 'solvency']
['corporations' 'equity' 'strata Law'] ['winding Up Proceedings' 'interlocutory Applications' 'costs Orders' 'service of Process' 'strata Levy Disputes' 'solvency']

Case Brief

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Procedural Posture

Corporations – Winding Up / Post Winding Up Order; Interlocutory Application to Set Aside Winding Up Order

Legal Issues

  1. 1 ['Whether the winding-up order should be set aside under r 36.15 or r 36.16(2)(b) UCPR' 'Whether valid service had occurred' 'Whether the applicant or respondent should bear costs' 'Solvency of the company' 'Representation and standing of applicant']

Ratio Decidendi

The winding-up order and appointment of liquidators were set aside because the company was solvent, evidence established deliberate non-notification to the solicitor of the statutory demand and process, and failure to advise was the principal cause of costs. The Owners Corporation was ordered to bear costs, with the burden not to fall on lot 18, the company's unit.

Court Disposition

Setting aside of winding-up order and related orders; costs orders; directions for amended process.

Orders

  • ['Orders 1, 2, and 3 made on 23 April 2020 set aside.' 'Originating process dismissed.' "Owners – Strata Plan 87778 to pay Company's costs of originating process and applicant's and Company's costs of interlocutory process." 'Liquidators justified in withdrawing $63,206.50 plus GST for remuneration/expenses from...