RE GOLDLORY RESTAURANT LTD

Parties

Procedural Posture

Company Winding Up (summary Procedure) / Determination of Referred Interlocutory Issue on Liquidators' Remuneration Basis

Legal Issues

1. 1 Whether remuneration of liquidators appointed under s227F should be assessed on percentage basis or time cost basis pursuant to s196(2) and rule146(2)
2. 2 Whether rule146(2) mandates percentage as the default basis absent a court order or whether the court has unfettered discretion to adopt time cost basis
3. 3 Whether special circumstances must be shown to depart from percentage basis in summary cases

Ratio Decidendi

The court held that under s196(2) and rule146(2) it has an unfettered discretion and the percentage basis applicable to the Official Receiver is not the default in summary s227F cases; as a matter of practice the time cost basis shall be adopted as the basis of remuneration in summary cases and should be provided for at the time the summary procedure order is made; no showing of special circumstances is required to adopt time costs.

Court Disposition

Application determined in favour of adopting time cost basis for remuneration of liquidators in summary s227F cases; court affirms its discretion under s196(2) and rule146(2) and rejects percentage as default

Orders

• Time cost basis adopted as the practice for remuneration of liquidators in summary procedure orders under s227F and should be provided for upon making the summary procedure order
• Court reserves costs of earlier hearing on 23 March 2006 and directs the Official Receiver and parties who took part in the present hearing to inform the court by letter within 7 days what order as to costs they seek