Modena Imports Pty Ltd (in liq), In the matter of; Leveraged Capital Pty Ltd (R&M app) (in liq) v Modena Imports Pty Ltd (in liq) [2010] NSWSC 739

New South Wales Supreme Court

CITATION : Modena Imports Pty Ltd (in liq), In the matter of; Leveraged Capital Pty Ltd (R&M app) (in liq) v Modena Imports Pty Ltd (in liq) [2010] NSWSC 739 This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S) : 22 June 2010

JUDGMENT DATE : 7 July 2010

JURISDICTION : Equity Division Corporations List

JUDGMENT OF : Palmer J

DECISION : Application refused.

CATCHWORDS : CORPORATIONS – LIQUIDATION – ADMINISTRATION – Whether liquidation should be terminated and DOCA given effect – DOCA part of a dishonest scheme by Mr James Byrnes to take assets which should be available for creditors – termination of liquidation contrary to public interest and commercial morality.

LEGISLATION CITED : Corporations Act 2001 (Cth) – s 182(1), s 439A(4), s 482, Pt 5.1

CATEGORY : Principal judgment

- Anderson v Palmer [2002] NSWSC 192 - Dubolo Pty Ltd v Codrington Investment Corporation Pty Ltd (1998) 26 ACSR 723 CASES CITED : - Masri Apartments Pty Ltd (in liq) v Perpetual Nominees Ltd (2004) 209 ALR 86 - Stork ICM Australia Pty Ltd, Re [2006] FCA 1849 - Warbler Pty Ltd, Re (1982) 6 ACLR 526

PARTIES : Leveraged Capital P/L (R&M app) (in liq) (Plaintiff) Modena Imports Pty Ltd (in liq) (Defendant)

FILE NUMBER(S) : SC 2009/288064

B. Mackay (Sol) (Liquidator) COUNSEL : P. Beazley (Sol) (Director of Defendant) D.L. Cook (ASIC, amicus curiae)

Bartier Perry (Liquidator) SOLICITORS : Beazley Singleton (Director of Defendant) Andrew Tregear (ASIC, amicus curiae)