Bidald Consulting v Miles Special Builders; Bidald Consulting v Miles Special Builders [2006] NSWSC 434

New South Wales Supreme Court

CITATION : Bidald Consulting v Miles Special Builders; Bidald Consulting v Miles Special Builders [2006] NSWSC 434

HEARING DATE(S) : 17 February 2006

JUDGMENT DATE : 18 May 2006

JURISDICTION : Equity

JUDGMENT OF : Campbell J

DECISION : Costs of deed termination application are costs in respect of the application for the order for winding up.

CATCHWORDS : PRACTICE AND PROCEDURE – costs – plaintiff's application to vary costs orders made in favour of plaintiff - where plaintiff succeeded in its application to terminate a Deed of Company Arrangement and subsequently obtained orders for the winding up of the defendant – where termination of Deed was a statutory precondition to the making of the order for winding up – whether costs of the deed termination application are costs in respect of the application for the order for winding up under section 556(1)(b) Corporations Act 2001 (Cth) – whether statutory requirement under section 466 Corporations Act 2001 (Cth) that applicant for winding up bear its own costs until a liquidator has been appointed militates against cost orders sought by plaintiff – policy considerations – whether plaintiff's costs of deed termination proceedings can be characterised as expenses properly incurred by deed administrators under section 556(1)(a) Corporations Act 2001 (Cth) – whether plaintiff's costs of deed termination proceedings can be characterised as other expenses of deed administrators under section 556(1)(dd) Corporations Act 2001 (Cth) – PRACTICE AND PROCEDURE – Supreme Court Procedure – where liquidator appointed after Deed of Company Arrangement terminated and deed administrators no longer have carriage of proceedings on behalf of the defendant - whether deed administrators should be granted leave to be heard on plaintiff's application – CORPORATIONS – Deed of Company Arrangement and winding up – order of priority of claims in winding up – whether costs of deed termination application are costs in respect of the order for winding up under section 556 Corporations Act 2001 (Cth) – whether orders sought by plaintiff interfere with administrators' entitlement to remuneration and expenses – administrator's right of indemnity – administrator's lien securing right of indemnity – property over which lien extends – non-effect of order of priority of unsecured claims under section 556 Corporations Act 2001 (Cth) on right of indemnity to the extent that it is secured by lien – no ruling on whether administrator has a lien on this application – WORDS AND PHRASES – "in respect of"