Travel Compensation Fund v Classic International Cruises Pty Ltd (in liquidation) & Ors [2014] NSWSC 167

Supreme Court New South Wales

Medium Neutral Citation: Travel Compensation Fund v Classic International Cruises Pty Ltd (in liquidation) & Ors [2014] NSWSC 167 Hearing dates: 14 February 2014 Decision date: 04 March 2014 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Declaration made that monies held by first defendant in relevant bank accounts are held on trust. Orders made approving for liquidators to enter into deed of settlement and release with plaintiff. Direction made that liquidators would be justified in distributing trust monies in specified manner. Direction made that liquidators would be justified in making interim payment to plaintiff subject to undertaking. Catchwords: CORPORATIONS - winding up - voluntary winding up - where declaration sought that funds paid by passengers of company into accounts were held on trust - whether monies in account were held on trust - application by liquidators for approval to enter into deed settlement and release with plaintiff - whether entry into deed is a proper exercise of power by liquidators - whether distribution of monies can properly be made in specified manner - whether interim payment can be made to plaintiff subject to undertaking. Legislation Cited: - Corporations Act 2001 (Cth) ss 436A, 477(2B), 479(3), 511, 556(1), 556(1)(a), 556(1)(dd), 566(1)(de), 566(2) - Travel Agents Act 1986 (NSW) s 40(3), 52 - Trustee Act 1925 (NSW) s 60 Cases Cited: - 13 Coromandel Place Pty Ltd v CL Custodians Pty Ltd (in liq) [1999] FCA 144; (1999) 30 ACSR 377 - Clayton's case (1816) 1 Mer 572; 35 ER 781 - Handberg (in his capacity as liquidator of S & D International Pty Ltd (in liq)) v MIG Property Services Pty Ltd [2010] VSC 336; (2010) 79 ACSR 373 - Re Bauhaus Pyrmont Pty Ltd (in liq) [2007] NSWSC 936; (2007) 64 ACSR 646 - Re Berkeley Applegate (Investment Consultants) Ltd (in liq) [1989] Ch 32 - Re Diplock's Estate [1948] Ch 465 - Re McGrath (in their capacity as liquidators of HIH Insurance Ltd) [2010] NSWSC 404; (2010) 78 ACSR 405 - Re MF Global Australia Ltd (in liq) [2012] NSWSC 994 - Re MF Global Australia Ltd (in liq) (No 2) [2012] NSWSC 1426 - Re National Buildplan Group Pty Ltd (subject to deed of company arrangement) [2014] NSWSC 146 - Re Sutherland; French Caledonia Travel Service Pty Ltd (in liq) [2003] NSWSC 1008; (2003) 59 NSWLR 361 - Sinclair v Brougham [1914] AC 398 Category: Principal judgment Parties: Travel Compensation Fund (Plaintiff) Classic International Cruises Pty Ltd (in liquidation) (First Defendant) Bradley Tonks (Second Defendant) John Vouris (Third Defendant) Representation: Counsel: D R Pritchard SC (Plaintiff) B Katekar (Defendants) Solicitors: Slater & Gordon (Plaintiff) Norton Rose (Defendants) File Number(s): 2012/393607