Lewis v Battery Mineral Resources Ltd (in liq) [2021] FCA 963

Federal Court of Australia

Lewis v Battery Mineral Resources Ltd (in liq) [2021] FCA 963 File number(s): NSD 115 of 2021

Judgment of: GRIFFITHS J

Date of judgment: 17 August 2021

Catchwords: CORPORATIONS – winding up – application for appointment of special purpose liquidator (SPL) under s 90-15 of the Insolvency Practice Schedule (IPS) – application for appointment of reviewing liquidator under s 90-23 of the IPS – where plaintiffs seek to investigate sale of assets and admission of CAD$10 million liability during voluntary administration – where incumbent liquidators were also the voluntary administrators – whether Court has power to appoint SPL to review conduct of incumbent liquidator as voluntary administrator – broad supervisory jurisdiction of Courts over external administrators under IPS considered – no power to appoint SPL – where application not supported by other creditors and 14 month delay in instituting proceedings – where liquidation almost finalised – consideration of statutory scheme and principles concerning appointment of reviewing liquidators – whether Court should appoint reviewing liquidator in exercise of discretion – application dismissed

Legislation: Corporations Act 2001 (Cth) Sch 2, ss 5-15, 5-20, 90-5, 90-10, 90-15, 90-20, 90-23(6)-(9), 90-27, 90-28, 90-29 Insolvency Practice Rules 2016 (Cth) r 90-22 Explanatory Memorandum, Insolvency Law Reform Bill 2015 (Cth)

Cases cited: Aardwolf Industries LLC v Riad Tayeh [2020] NSWSC 299 Australian Securities and Investments Commission v Macks (No 2) [2019] SASC 17; 133 SASR 251 Australian Securities and Investments Commission v Macks (No 5) [2021] SASC 12 Bale v Mills [2011] NSWCA 226; 81 NSWLR 498 Bl and Gy International Co Ltd v Hypec Electronics Pty Ltd [2010] NSWSC 959; 79 ACSR 558 Carr v Finance Co of Australia Ltd [1981] HCA 20; 147 CLR 246 Commonwealth of Australia (Department of Education, Skills and Employment) v Phoenix Institute of Australia Pty Ltd (in liq) [2020] FCA 937 Commonwealth of Australia, Re ACN 093 117 232 Pty Ltd (in liq) v ACN 093 117 232 (in liq) [2018] FCA 192 Deputy Commissioner of Taxation, ACN 154 520 199 Pty Ltd (in liq) v ACN 154 520 199 Pty Ltd (in liq) [2017] FCA 444 Deputy Commissioner of Taxation, Italian Prestige Jewellery Pty Ltd v Italian Prestige Jewellery Pty Ltd (in liq) [2018] FCA 983; 129 ACSR 115 Eastman v Director of Public Prosecutions (ACT) [2003] HCA 28; 214 CLR 318 Eighty Second Agenda Pty Ltd v Handberg [2014] VSC 665 Frugtniet v Secretary, Department of Social Services [2021] FCAFC 127 GDK Projects Pty Ltd, Umberton Pty Ltd (in liq) v Umberton Pty Ltd (in liq) [2018] FCA 451 Hall v Poolman [2009] NSWCA 64; 75 NSWLR 99 Hill v David Hill Electrical Discounts Pty Ltd (in liq) [2001] NSWSC 271; 37 ACSR 617 Honest Remark Pty Ltd v Allstate Exploration NL [2006] NSWSC 735; 234 ALR 765 Liquidators of Y Pty Ltd and Diboll [2020] FamCA 18 Markey (Liquidator), Bestjet Travel Pty Ltd (in liq) v Bestjet Travel Pty Ltd (in liq) [2020] FCA 1881 Melhelm Pty Ltd, Boka Beverages Pty Ltd (in liq) v Boka Beverages Pty Ltd (in liq) [2019] FCA 1184; 138 ACSR 95 Miller & Associates Broking Pty Ltd v BMW Australia Finance Ltd [2010] HCA 31; 241 CLR 357 Northbourne Developments Pty Ltd v Reiby Chambers Pty Ltd (1989) 19 NSWLR 434 NT Power Generation Pty Ltd v Power and Water Authority [2004] HCA 48; 219 CLR 90 Re ACN 152 546 453 Pty Ltd (formerly Hemisphere Technologies Pty Ltd) (in liq) [2018] NSWSC 1002 Re Ansett Australia Ltd [2002] FCA 90; 115 FCR 409 Re Atlas Construction Group Pty Ltd (in liq) [2018] NSWSC 1189; 129 ACSR 238 Re Aus Streaming (in liq) [2020] VSC 313 Re George A Bond & Co Ltd (1932) 32 SR (NSW) 301 Re McDermott [2019] VSCA 23 Re Mineral Securities Australia Ltd (in liq) [1973] 2 NSWLR 207 Shangri-La Construction Pty Ltd v GVE Hampton Pty Ltd (in liq) [2021] VSC 161 Stuart v The Queen (1959) 101 CLR 1