National Australia Bank Ltd v Wily [2002] NSWSC 573

New South Wales Supreme Court

CITATION : National Australia Bank Ltd v Wily [2002] NSWSC 573 CURRENT JURISDICTION: Equity Division Corporations List FILE NUMBER(S) : SC 2717/02 HEARING DATE(S) : 28 , 29 May 2002; 6 June 2002 JUDGMENT DATE : 27 June 2002

National Australia Bank Limited (P) PARTIES : Andrew Hugh Jenner Wily (D1) The Crescent Medical Centre Pty Ltd (in liq), Fairfield Medical Arcade Pty Ltd (in liq), Coastline Medical Pty Ltd (in liq), Fairfield Alternative Medicine Pty Ltd (in liq) and Rapid Detox Centre Australasia PtyLtd (in liq) (D2) JUDGMENT OF : Burchett AJ

COUNSEL : A W Street SC and E A Collins (P) R J Weber SC and S W Climpson (D) SOLICITORS : Dibbs Barker Gosling (P) MBP Legal (D) CATCHWORDS : CORPORATIONS- Liquidators- Independence- Alleged conflict of interest and lack of independence through retainer of solicitor also acting for two directors- Discussion of Re Allebart Pty Ltd (in Liq)- Necessity that independence and impartiality both exist and be seen to exist- Burden on plaintiff to show cause why liquidator should be removed- Due cause to be measured by "the real, substantial, honest interests of the liquidation". LEGISLATION CITED : Corporations Act, ss 503, 533 Advance Housing Pty Ltd (in liq) v Newcastle Classic Developments Pty Ltd (1994) 14 ACSR 230 Barton v Armstrong [1973] 2 NSWLR 598 Barton v Armstrong [1976] AC 104 Ephstathis v Greek Orthodox Community of St George (1988) 13 ACLR 691 In re Adam Eyton, Limited; Ex parte Charlesworth [1887] 36 Ch D 299 National Australia Bank Ltd v Market Holdings Pty Ltd (in liq) (2001) 37 ACSR 629 CASES CITED : Re Allebart Pty Ltd (in Liq) and the Companies Act [1971] 1 NSWLR 24 Re Biposo Pty Ltd (1995) 17 ACSR 730 Re Club Superstores Australia Pty Ltd (in liq) (1993) 10 ACSR 730 Re Excel Finance Corporation Ltd (Receiver and Manager Appointed); Worthley v England (1994) 52 FCR 69 Re Global Medical Imaging Management Ltd (in liq) (2001) 38 ACSR 214 Re Keypak Homecare Ltd [1987] BCLC 409 Re Ross Wood & Sons Pty Ltd (in liq); Wood v Targett (1997) 23 ACSR 291 DECISION : Proceeding dismissed with costs.