In the matter of Direct FX Trading Pty Ltd [2020] NSWSC 1338

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Direct FX Trading Pty Ltd [2020] NSWSC 1338 Hearing dates: 24 September 2020 Date of orders: 1 October 2020 Decision date: 01 October 2020 Jurisdiction: Equity - Corporations List Before: Black J Decision: Directions given that Liquidators are justified in pooling certain client monies accounts and other monies. Liquidators' costs are properly incurred in winding up and may be paid out first from recoveries. Catchwords: CORPORATIONS – Winding up – Application for directions under s 90-15 of IPSC in relation to matters arising under winding up – Pooling – Whether liquidators can pool certain client segregated accounts and other monies – Where client accounts have been intermingled – Where impracticable and uneconomical to trace to individual client interests – Where impracticable and uneconomical to apply lowest intermediate balance rule. Legislation Cited: - Corporations Act 2001 (Cth), s 981A, Pt 7.8A - Corporations Regulations 2001 (Cth), Reg 7.8.03 - Insolvency Practice Schedule (Corporations), ss 90-15, 90-20 - Trustee Act 1925 (NSW), ss 81 and 85 Cases Cited: - Australian Securities and Investments Commission v Letten (No 7) [2010] FCA 1231 - Australian Securities and Investments Commission v Nelson (2003) 44 ACSR 719 - Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567 - Caron and Seidlitz v Jahani and McInerney in their capacity as liquidators of Courtenay House Pty Ltd (in liq) & Courtenay House Capital Trading Group Pty Ltd (in liq) (No 2) [2020] NSWCA 117 - Equititrust Ltd (in liq) (recs apptd) (recs and mgrs apptd) v Equititrust Ltd (in liq) (recs apptd) (recs and mgrs apptd) (No 4) [2017] FCA 1133 - Georges (in his capacity as joint and several liquidator of Sonray Capital Markets Pty Ltd (in liq)) v Seaborn International (as trustee for the Seaborn Family Trust) (2012) 288 ALR 240; 87 ACSR 442; [2012] FCA 75 - Maelor Jones Investments (Noarlunga) Pty Ltd v Heywood-Smith (1989) 54 SASR 285 - Re BBY Ltd (recs and mgrs appt) (in liq) (No 2) (2018) 363 ALR 492; [2018] NSWSC 346 - Re Courtenay House Capital Trading Group Pty Limited (in liq) and Courtenay House Pty Limited (in liq) (2018) 125 ACSR 149; [2018] NSWSC 404 - Re Go Energy Group Ltd [2019] NSWSC 558 - Re Metal Storm Ltd (subject to deed of company arrangement) (2014) 100 ACSR 637; [2014] NSWSC 813 - Re MF Global Australia Ltd (in liq) (2012) 267 FLR 27; [2012] NSWSC 994 - Re Octaviar Administration Pty Ltd (in liq) [2017] NSWSC 1556 - Russell-Cooke Trust Co v Prentis [2002] EWHC 2227; [2003] 2 All ER 478 - Walley; Re Poles & Underground Pty Ltd (admins apptd) [2017] FCA 486 - Warner (liquidator), Re Sakr Bros Pty Ltd (in liq) [2019] FCA 547 Category: Principal judgment Parties: Jason Tracy and Vaughan Strawbridge in their capacity as liquidators of Direct FX Trading Pty Ltd (in liq) (First Plaintiff) Direct FX Trading Pty Ltd (in liq) Second Plaintiff) Representation: Counsel: J Hutton (Plaintiffs)