RE CONSTRUCTION & PRODUCTION SYSTEMS LTD

Parties

Procedural Posture

Companies Winding Up Proceedings / Application for Retrospective Ratification and Sanction of Payments (taxation Resumed Hearing)

Legal Issues

1. 1 Whether appointment of Panel B agents involved impermissible wholesale delegation of the Official Receiver's functions
2. 2 Whether the court can retrospectively ratify appointments under section 200(3) or the court's inherent jurisdiction
3. 3 Whether agents' fees can be paid out of assets of the companies in liquidation

Ratio Decidendi

The court exercised its discretion under section 200(3) to retrospectively ratify the appointments of Panel B agents and to sanction payment of their fees from the assets of the companies subject to taxation because the agents' work benefited the creditors and the liquidation, there was no evidence of impropriety, and a case-by-case investigation of delegation was disproportionate and impractical given the passage of time and limited assets.

Court Disposition

Applications granted; court retrospectively authorised appointments under section 200(3) and sanctioned payment of agents' fees from company assets subject to taxation

Orders

• Orders made substantially in the terms sought in each of the 19 cases: retrospective ratification of the Official Receiver's appointments of agents under the Panel B Scheme pursuant to section 200(3) and authorisation for payment of agents' fees and expenses out of the assets of the respective companies subject to...