Morelli (liquidator), in the matter of FW Projects Pty Limited (in liq) v White Hills Pty Limited [2024] FCA 789

Federal Court of Australia

Morelli (liquidator), in the matter of FW Projects Pty Limited (in liq) v White Hills Pty Limited [2024] FCA 789 File number(s): NSD 819 of 2022

Judgment of: HALLEY J

Date of judgment: 19 July 2024

Catchwords: CORPORATIONS – application for judicial advice pursuant to s 90-15 and s 90-20 of the Insolvency Practice Schedule (Corporations) in Sch 2 of the Corporations Act 2001 (Cth) as to the treatment of levies issued by a strata building management committee that arose after the company went into liquidation and receivers appointed over real property assets the company held as trustee (strata levies) – whether the plaintiffs as liquidators or receivers of trust assets are required to pay the strata levies in full and in priority to all other unsecured creditors or pari passu with other unsecured creditors – whether the contract for the sale of land entered into between the plaintiffs and the defendant gave rise to an obligation to pay the strata levies – whether the plaintiffs adopted or accepted liability to pay the strata levies pursuant to a strata management statement – whether the plaintiffs adopted or accepted liability to pay the strata levies by arranging for rectification works to be undertaken to enable the completion of development of real property assets prior to sale – whether the Lundy Granite principle applies to receivership by analogy or extension of the previous application of that equitable principle – entry into contract of sale and subsequent lease did not give rise to obligation to pay the strata levies – the Lundy Granite principle applied to the plaintiffs in their capacity as receivers – plaintiffs adopted the strata management statement and thereby liability to pay the strata levies as debts incurred by the plaintiff in their capacity as receivers – judicial advice given