In The Matter of Mendarma Pty Ltd (in liquidation) (No. 2) [2007] NSWSC 99

Reported Decision : 61 ACSR 601 (2007) 25 ACLC 193

New South Wales Supreme Court

CITATION : In The Matter of Mendarma Pty Ltd (in liquidation) (No. 2) [2007] NSWSC 99 This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S) : 09/11/06

JUDGMENT DATE : 20 February 2007

JURISDICTION : Equity Division Corporations List

JUDGMENT OF : White J

DECISION : Order the respondents to pay the applicants' costs to the extent there are assets of Mendarma Pty Ltd (in liq) available to satisfy their liability under this order after meeting expenses in priority to or pari passu with the respondents' liability under this order.

CATCHWORDS : CORPORATIONS - Winding-up - Liquidators – Costs – Liquidators were respondents to application to set aside examination summonses – Whether liquidators' liability to pay costs to successful applicants to be limited to assets of company available to satisfy their right of indemnity – Whether order may be made for payment of costs directly out of company assets where company not a party to proceedings.

Corporations Act 2001 (Cth) LEGISLATION CITED : Uniform Civil Procedure Rules 2005 (NSW) Civil Procedure Act 2005 (NSW) Supreme Court (Corporations) Rules 1999 (NSW)

In the Matter of Mendarma Pty Ltd (in liquidation) [2006] NSWSC 1306 Re Bonang Gold Mining Co Ltd (1893) 14 NSWLR (Eq) 262 Hypec Electronics Pty Ltd (in liq) v Mead (2004) 61 NSWLR 169 House of Golf Chatswood Pty Ltd v McManus & Ors (No. 2) (2005) 225 ALR 786 Re Biposo Pty Ltd; Condon v Rodgers (No. 3) (1995) 17 ACSR 730 Kirwan v Cresvale Far East Ltd (in liq) (2002) 44 ACSR 21 Re Buena Vista Motors Pty Ltd (in liq) [1971] 1 NSWLR 72 Re Wilson Lovatt & Sons Ltd [1977] 1 All ER 274 Cresvale Far East Ltd (in liq) v Cresvale Securities Ltd & Ors (No. 2) (2001) 39 ACSR 622 J B Lindon, G B Parker, H R Williams, Buckley on The Companies Acts, 13th ed (1957) London; Butterworth & Co (Publishers) Ltd. Kirwan v Cresvale Far East Ltd (in liq) (2002) 44 ACSR 21 CASES CITED : Re R Bolton & Company; Salisbury-Jones & Dale's Case [1895] 1 Ch 333 Cuthbertson & Richards Sawmills Pty Ltd v Thomas (No. 2) [1999] FCA 1789 Re Western Counties Steam Bakeries & Milling Co [1897] 1 Ch 617 In Re W Powell & Sons [1896] 1 Ch 681 B H McPherson, A R Keay, The Law of Company Liquidation, 4th ed (1999) Sydney, LBC Information Services In Re National Wholemeal Bread & Biscuit Company [1892] 2 Ch 457 Re Rural & Veterinary Requisites Pty Ltd (in liq) (1978) 3 ACLR 597 Irons v Merchant Capital Ltd (1994) 116 FLR 204 Curtis-Hayward v Sheahan [2002] SASC 385 Brodin Pty Ltd v Dasein Constructions Pty Ltd (No. 2) [2005] NSWSC 302 Re Network Welding (in liq) (No. 2) [2001] NSWSC 809 Re E & L Struthers, Liquidator of PACI Pty Ltd (No. 3) (2006) 24 ACLC 201