Hughes, in the matter of Substar Holdings Pty Ltd (in liquidation) [2020] FCA 1863

FEDERAL COURT OF AUSTRALIA

Hughes, in the matter of Substar Holdings Pty Ltd (in liquidation) [2020] FCA 1863 File number: WAD 243 of 2020

Judgment of: MCKERRACHER J

Date of judgment: 23 December 2020

Catchwords: CORPORATIONS – application by liquidators to be appointed as receivers of trust assets – where trust deed disqualifies the corporate trustee upon insolvency – where corporate trustee cannot realise its right to indemnity and exoneration as bare trustee – where judicial advice sought that the liquidators are justified in treating the property in the name of the company as property of the trust

Legislation: Corporations Act 2001 (Cth) ss 420, 420(2)(s), 420(2)(t), 420(2)(u), 420(2)(w), 555, 556, 560, 561, Sch 2 ss 90-15, 90-20 Federal Court of Australia Act 1976 (Cth) s 57 Trustees Act 1962 (WA) s 7 Federal Court (Corporations) Rules 2000 (Cth) r 2.8 Federal Court Rules 2011 (Cth) rr 14.21, 14.22

Cases cited: Amirbeaggi, in the matter of Simpkiss Pty Ltd (in liq) [2018] FCA 2121 Brereton, in the matter of MyHouse (Aust) Pty Limited (administrators appointed) [2020] FCA 610 Caterpillar Financial Australia Limited v Ovens Nominee Pty Ltd [2011] FCA 677 Cremin, in the matter of Brimson Pty Ltd (in liq) [2019] FCA 1023; (2019) 136 ACSR 649 Jones v Matrix Partners Pty Ltd (2018) 260 FCR 310; [2018] FCAFC 40 Krejci, in the matter of Union Standard International Group Pty Ltd (Administrators Appointed) (No 2) [2020] FCA 1111 Staatz v Berry, in the matter of Wollumbin Horizons Pty Ltd (in liq) (No 3) [2019] FCA 924 Taylor (Liquidator) v CJ & KL Bond Super Pty Ltd (Trustee), in the matter of CJ & KL Bond Pty Ltd (in liq) [2018] FCA 1430