Re Tietyens Investments Pty Ltd [1999] FCA 206

FEDERAL COURT OF AUSTRALIA

Re: Tietyens Investments Pty Ltd [1999] FCA 206

CORPORATIONS LAW – liquidator's application under s 477(2A) of the Corporations Law for approval of compromise of a debt– alternative application by liquidator for directions under s 479(3) of the Corporations Law – issue of standing of "interested" parties – whether application for approval of compromise competent – whether Court should give directions – whether Court should direct liquidator that he need not proceed with compromise in light of Counsel's advice that terms not in interests of investors - whether Court should direct liquidator to seek independent advice of another Counsel. WORDS & PHRASES: "compromise of a 'debt'" Corporations Law, ss 477(2A), 479(3) Barnes v Addy (1874) LR 9 Ch App 244 referred to Re BPTC Ltd (1996) 14 ACLC 845 at 846 referred to Annetts v McCann (1990) 170 CLR 596 referred to Ainsworth v Criminal Justice Commission (1992) 175 CLR 564 referred to Aussie Airlines Pty Ltd v Australian Airlines Ltd (1996) 68 FCR 406 referred to Allan v Development Allowance Authority (1998) 152 ALR 439 referred to Coats v Southern Cross Airlines Holdings Ltd (in liq) (1998) 16 ACLC 1393 at 1395, 1400 applied Re GB Nathan & Co Pty Ltd (in liq) (1991) 24 NSWLR 674 at 680 referred to Australian Securities Commission v Melbourne Asset Management Nominees Pty Ltd (1994) 49 FCR 334 at 346, 352 applied Murdoch v Crawford [1986] VR 97 referred to National Australia Bank Ltd v Hokit Pty Ltd (unreported, 17 June 1996, NSWCA) referred to Levy v State of Victoria (1997) 189 CLR 579 at 600-605 referred to Perri v Coolangatta Investments Pty Ltd (1982) 149 CLR 537 at 541, 552-3, 559 referred to Meehan v Jones (1982) 149 CLR 571 at 581, 588, 597 referred to Hughes Aircraft Systems International v Airservices Australia (1997) 76 FCR 151 at 190-193 referred to Re Geelong Building Society (in liq) (1996) 14 ACLC 334 at 336, 340-1, 338-9 distinguished State Bank of New South Wales v Turner Corporation Ltd (1994) 14 ACSR 480 at 483 referred to Sanderson v Classic Car Insurances Pty Ltd (1985) 10 ACLR 115 referred to Re Luxtrend Pty Ltd (in liq) [1997] 2 Qd R 86 at 87-9 applied Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378 referred to Humphris & Anor v Jenshol & Anor (1997) 25 ACSR 212 referred to International Alpaca Management Pty Ltd v Ensor (1995) 133 ALR 561 referred to News Limited v Australian Rugby Football League Ltd (1996) 58 FCR 447 referred to Pyramid Building Society (in liq) v Scorpion Hotels Pty Ltd [1998] 1 VR 188 referred to Farrow Finance Co Ltd (in liq) v Farrow Properties Pty Ltd (in liq) (1997) 26 ACSR 544 referred to Farrow Finance Co Ltd (in liquidation) v A.N.Z. Executors and Trustees Co Ltd [1998] 1 VR 50 at 74 referred to Re Spedley Securities Ltd (in liq) (1992) 9 ACSR 83 at 85, 87 applied Re Lemon Tree Passage & Districts RSL & Citizens Club Co-operative Ltd (1988) 6 ACLC 24 at 26, 27 referred to Re Atkinson (deceased) [1971] VR 612 at 615-616 referred to Re Chase Corporation (Australia) Equities Pty Ltd (1990) 8 ACLC 1118 referred to Grimwade v Meagher [1995] 1 VR 446 referred to