Melhelm Pty Ltd, in the matter of Boka Beverages Pty Ltd (in liquidation) v Boka Beverages Pty Ltd (in liquidation) (No 2) [2019] FCA 1809

FEDERAL COURT OF AUSTRALIA

Melhelm Pty Ltd, in the matter of Boka Beverages Pty Ltd (in liquidation) v Boka Beverages Pty Ltd (in liquidation) (No 2) [2019] FCA 1809 File number: NSD 2400 of 2018

Judge: GLEESON J

Date of judgment: 7 November 2019

Catchwords: COSTS – plaintiffs seek orders that liquidators not be permitted to rely on right of indemnity from company's assets or recoveries to pay costs – whether liquidators acted unreasonably in defending the litigation – liquidators found not to have acted unreasonably

Legislation: Corporations Regulations 2001 (Cth) reg 5.6.55

Cases cited: Huntley Management Limited v Timbercorp Securities Limited (No 2) [2010] FCA 623 Hypec Electronics Pty Ltd (in liq) v Mead; BL & GY International v Hypec Electronics Pty Ltd (in liq) [2004] NSWSC 731; (2004) 61 NSWLR 169 In the matter of JA Westaway Pty Limited (in liquidation) [2016] NSWSC 868 In re Beddoe; Dowmes v Cottam [1893] 1 Ch 547 In the matter of 1st Fleet Pty Ltd (in liquidation) [2019] NSWSC 6 In the matter of Iris Diversified Pty Ltd (in liquidation) [2018] NSWSC 834 In the matter of Mendarma Pty Ltd (in liq) (No. 2) [2007] NSWSC 99 Lardis v Free [2014] FCA 304 Macedonian Orthodox Community Church St Petka Incorporated v His Eminence Petar The Diocesan Bishop of The Macedonian Orthodox Diocese of Australia and New Zealand [2008] HCA 42; (2008) 237 CLR 66 McDermott and Potts in their capacities as joint and several liquidators of Lonnex Pty Ltd (In liquidation) [No 2] [2019] VSCA 62; (2019) 57 VR 238 Re Network Welding Pty Ltd (In liq) (No 2) [2001] NSWSC 809 Re Wilson Lovatt & Sons Ltd [1977] 1 All ER 274 Silvia & Anor v Brodyn Pty Limited [2007] NSWCA 55; (2007) 25 ACLC 385