In the matter of Double Bay Property Management Pty Ltd (in liq) [2020] NSWSC 203

In the matter of Double Bay Property Management Pty Ltd (in liq) [2020] NSWSC 203

Liquidators of a company removed as trustee by ipso facto clause upon winding up are entitled to be appointed as receivers and managers of the trust property, to enforce their right of indemnity and realise assets for the benefit of creditors and beneficiaries when urgent circumstances justify such appointment, subject to return to Court for leave to distribute proceeds.

Jurisdiction
Australia
Judgment Date
03 March 2020
Procedural Posture
Application / Ex Parte Urgent Hearing for Appointment of Receivers and Managers
Outcome
application granted in part
Legal Topics
['winding Up' "liquidators' Powers" 'appointment of Receivers' 'trustee Removal' 'enforcement of Right of Indemnity']
['corporations Law' 'equity' 'trusts Law'] ['winding Up' "liquidators' Powers" 'appointment of Receivers' 'trustee Removal' 'enforcement of Right of Indemnity']

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Procedural Posture

Application / Ex Parte Urgent Hearing for Appointment of Receivers and Managers

Legal Issues

  1. 1 ['Whether liquidators of a company removed as trustee by ipso facto clause upon winding up are entitled to be appointed by the Court as receivers and managers over the former trust property' 'Whether an order appointing receivers and managers can be made nunc pro tunc' 'Whether urgent ex parte circumstances justify appointment without notice to creditors']

Ratio Decidendi

Liquidators of a company removed as trustee by ipso facto clause upon winding up are entitled to be appointed as receivers and managers of the trust property, to enforce their right of indemnity and realise assets for the benefit of creditors and beneficiaries when urgent circumstances justify such appointment, subject to return to Court for leave to distribute proceeds.

Court Disposition

application granted in part

Orders

  • ['Liquidators appointed jointly and severally as receivers and managers, without security, of property assets and undertakings of the Property Management Unit Trust.' 'Receivers must return to the Court for leave to distribute proceeds to creditors and beneficiaries.' 'Orders to be entered forthwith.' 'Creditors...