Queensland Nickel Sales Pty Ltd v Queensland Nickel Pty Ltd (in liq) (No 3) [2022] FCA 564

Federal Court of Australia

Queensland Nickel Sales Pty Ltd v Queensland Nickel Pty Ltd (in liq) (No 3) [2022] FCA 564 File number(s): QUD 257 of 2021

Judgment of: DOWNES J

Date of judgment: 17 May 2022

Catchwords: CORPORATIONS – application for leave to proceed against company in liquidation pursuant to s 471B Corporations Act 2001 (Cth) – proposed proceeding relates to challenges to entitlement of former trustee to indemnity from trust assets – whether utility in granting leave to bring this proceeding where liquidators have sought directions in separate proceeding in relation to proposed payments from trust assets – where more efficient and cost-effective to have challenges sought to be raised in this proceeding addressed in the other proceeding – leave refused but with costs reserved PRACTICE AND PROCEDURE – application for interlocutory injunction restraining the company in liquidation from dealing with cash at bank until final determination of this proceeding – where parties negotiated and agreed upon consent order after hearing of application which enabled access to funds for certain purposes – where process proposed whereby parties can negotiate and agree upon further payments pending determination of separate proceedings – where parties raised no objection to that proposed process – application dismissed but with costs reserved

Legislation: Corporations Act 2001 (Cth) s 471B, Sch 2 s 90-15 Federal Court of Australia Act 1976 (Cth) s 37M(1)(b) Trusts Act 1973 (Qld) s 96

Cases cited: Queensland Nickel Sales Pty Ltd v Queensland Nickel Pty Ltd (in liquidation) (No 2) [2022] FCA 225