In the matter of North Food Catering Pty Limited [2014] NSWSC 77

Supreme Court New South Wales

Medium Neutral Citation: In the matter of North Food Catering Pty Limited [2014] NSWSC 77 Hearing dates: 10 February 2014 Decision date: 10 February 2014 Before: Brereton J Decision: (1) The second plaintiffs, as liquidators of the first plaintiff, would be justified in distributing the funds held by the first plaintiff as trustee for the Nofoem Unit Trust in the following order and priority: (a) First, in the payment of the second plaintiff's costs and expenses of this application; (b) Secondly, in payment of the second plaintiff's remuneration in the total amount of $189,741.17 and; (c) Thirdly, in payment of an amount of up to $40,000 to Westfield Shopping Centre Management Company Pty Limited in respect of indemnity funding advanced by Westfield and applied by the second plaintiffs towards their costs remuneration expenses in their administration of the first plaintiff. (2) Liberty be reserved to the plaintiffs to apply in relation to any further remuneration of the second plaintiffs that may become payable or any other matter arising in the liquidation of the first plaintiff generally. Catchwords: CORPORATIONS - external administration - winding up - liquidators' applications - application for directions - where company is trustee of trading trust and has no other function - whether liquidators remuneration recoverable from trust property Legislation Cited: (Cth) Corporations Act 2001, ss 479(3), 511 (NSW) Trustee Act 1925, s 63 Cases Cited: 13 Coromandel Place Pty Limited v CL Custodial Pty Limited (in liq) (1999) 30 ACSR 377 Bastion v Gideon Investments (2000) 35 ACSR 466 Grime Carter & Co Pty Limited v Whytes Furniture (Dubbo) Pty Limited (1983) 7 ACLR 540 Re Application of Sutherland [2004] NSWSC 798; (2004) 50 ACSR 297 Re Byrne Australia Pty Ltd (1981) 5 ACLR 475; [1981] 1 NSWLR 394 Re Enhill Pty Ltd (1982) 5 ACLR 4 Re French Caledonia Travel Service Pty Ltd (in liq) [2003] NSWSC 1008; (2003) 59 NSWLR 361; 48 ACSR 97 Re GB Nathan & Co Pty Ltd (In Liquation) (1991) 24 NSWLR 674 Re Greater West Insurance Brokers Pty Ltd [2001] NSWSC 825; (2001) 39 ACSR 301 In re MF Global Limited (in liq) (No 2) [2012] NSWSC 1426 Re Suco Gold Pty Limited In Liquidation (1993) 33 SASR 99 Trio Capital Ltd (admin appointed) v ACT Superannuation Management Pty Ltd [2010] NSWSC 941; (2010) 79 ACSR 425 Category: Principal judgment Parties: North Food Catering Pty Ltd (In Liquidation) ACN 132 073 388 (first plaintiff) Jim Sarantinos and John Melluish (second plaintiffs) Representation: Counsel: D R Sulan (plaintiffs) Solicitors: Clayton Utz (plaintiffs) File Number(s): 2013/363426