CSSL v Commercial Nominees of Australia [2002] NSWSC 468

New South Wales Supreme Court

CITATION : CSSL v Commercial Nominees of Australia [2002] NSWSC 468 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 2107/01 HEARING DATE(S) : 27 May 2002 JUDGMENT DATE : 28 May 2002

CSSL Pty Ltd (P) Commercial Nominees of Australia Ltd (in liq) (D) Roderick Mackay Sutherland (A) Andrew Skinner (R1) Chris Honeyman (R2) PARTIES : Ferrier Hodgson Management Services Pty Ltd as trustee of the Equity Enhanced Fund (R3) Graham Kinder (R4) Johmar Developments Pty Ltd (R5) Norman Seckold (R6) Ross Honeyman (R7) Ferrier Hodgson Management Services Pty Ltd as trustee of the Enhanced Cash Management Trust (R8) JUDGMENT OF : Austin J

Mr P Braham (P) COUNSEL : Mr G Vardas (Sol)(R1) Mr A Honnery (Sol)(R2) Mr J E Marshall (R3, R8) Gunn Hamilton & Bray (R1) SOLICITORS : Deacons Lawyers (R2) Clayton Utz (R3, R8) CATCHWORDS : CORPORATIONS - liquidation - application by court-appointed liquidator for directions - where company in liquidation was a partner and custodian - whether liquidator's power of sale extends to partnership property - whether directions in respect of sale of partnership property should be made subject to dissolution of partnership - whether directions should be on condition that the approval of the holder of security over partnership interests should be obtained - whether directions should be qualified to preserve third party rights and interests LEGISLATION CITED : Corporations Act 2001 (Cth) ss 477(2)(c), 479(3) CASES CITED : Bastion v Gideon Investments Pty Ltd (in liq) (2000) 35 ACSR 466 Re G B Nathan & Co Pty Ltd (in liq) (1991) 24 NSWR 679 DECISION : Directions that liquidator would be justified, if partnership is first dissolved, to sell and retain proceeds of sale and to consult with security holder