In the matter of Gurrawillie Street Pty Limited [2020] NSWSC 1074

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Gurrawillie Street Pty Limited [2020] NSWSC 1074 Hearing dates: 11 June 2020 Date of orders: 11 June 2020 Decision date: 11 June 2020 Jurisdiction: Equity - Corporations List Before: Rees J Decision: Liquidation stayed. Approval given to director to take steps to regularise company's affairs and sell its main asset. Adjourned for Court to terminate the winding up on the director taking the approved steps. Catchwords: CORPORATIONS — Winding up — Termination — Commercial morality — Relevant factors Property development – informal funding arrangements – lack of demarcation between personal and company funds – development constructed contrary to development approval – townhouses marketed and contracts exchanged without remedying non-compliance with DA – townhouses apparently occupied without occupation certificate – no rent received by company – no tax returns lodged – explanation for non-receipt of statutory demand and court process not compelling – provision of documents to liquidator incomplete – solvency dependent on rectifying non-compliant development and sale in immediate future and deferral of main creditors. Whether liquidator or director should carry out rectification and sale of townhouses – Court's ability to oversee compliance with director's undertakings –liquidation stayed – authority given to director to regularise affairs of the company – adjourn to terminate liquidation on steps being taken. Legislation Cited: Corporations Act 2001 (Cth), ss 198G, 482, 482(1A)(a) Environmental Planning and Assessment Act 1979 (NSW) Cases Cited: Apostolou v VA Corporation of Australia Pty Ltd] [2010] FCA 64; (2010) 77 ACSR 84 Benedict v Olde; in the matter of ATS (Asia Pacific) Pty Ltd [2011] FCA 1008 Brolrik Pty Ltd v Sambah Holdings Pty Ltd [2001] NSWSC 1171 Deputy Commissioner of Taxation v Star Building Formwork Pty Ltd [2005] FCA 1939 In the matter of 311 Hume Highway Liverpool Fund Pty Ltd (in liq) (2013) 93 ACSR 683; [2013] NSWSC 465 In the matter of CNL Transport Pty Ltd (in liq) [2017] NSWSC 291 In the matter of Falcon Corp Pty Limited [2020] NSWSC 288 In the matter of Glass Recycling Pty Limited [2014] NSWSC 439 In the matter of Modena Imports Pty Ltd (in liq) [2010] NSWSC 739 In the matter of MWM Sydney Pty Ltd (in liquidation) [2016] NSWSC 688 In the matter of Parkway One Pty Limited (in liquidation) [2019] NSWSC 1495 In the Matter of SNL Group Pty Ltd (in Liq); Su v SNL Group Pty Ltd (in Liq) [2010] NSWSC 797 In the matter of The Wills Group Pty Limited (in liq) [2016] NSWSC 1907 In Re Telescriptor Syndicate Limited [1903] 2 Ch 174 Inverell Shire Council v Australian Gemstone Resources Pty Limited (in liquidation) [2018] NSWSC 1470 Jain v Deojill Pty Ltd (in liq) [2005] FCA 1938 JD & RS Pty Ltd [2016] NSWSC 806 Metledge v Bambakit Pty Ltd [2005] NSWSC 160 Owners Strata Plan 70294 v LNL Global Enterprises Pty Ltd & Ors (2016) 60 ACSR 646 Re Kitchen Dimensions Pty Limited (in liq) [2012] VSC 280 Singleton v Andreones Pty Ltd [2005] NSWSC 730 Stolar Joinery (Aust) Pty Ltd v Charterarm Investments Pty Ltd (in liq) [2011] VSC 577 Category: Principal judgment Parties: Salah Alsader (Applicant) Gurrawillie Street Pty Ltd (in liq) (Second Respondent) Bruce Gleeson (Third Respondent) Representation: Counsel: Mr R Alkadamani / Mr H Elachkar (Applicant) Mr D Krochmalik (Second and Third Respondents)