In the matter of Gladstone Mortgagee No 1 Pty Ltd [2015] NSWSC 1551

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Gladstone Mortgagee No 1 Pty Ltd [2015] NSWSC 1551 Hearing dates: 28 August, 3 September 2015 Decision date: 20 October 2015 Jurisdiction: Equity - Corporations List Before: Black J Decision: Order that the First Defendant, Gladstone Mortgagee No 1 Pty Ltd, be wound up in insolvency. Order that Robert Kite and Mark Hutchins be appointed joint and several liquidators. The Plaintiffs' costs of and incidental to the application be assessed and reimbursed out of the Defendant's assets. Catchwords: CORPORATIONS – winding up – application based on failure to comply with creditor's statutory demand – where the debt the subject of the statutory demand was a judgment debt of the Supreme Court of Queensland – where payments were paid into Court as security for costs exceeding the demand amount – whether demand complied with because the sum was paid, secured or compounded to the reasonable satisfaction of the Plaintiffs.

CORPORATIONS – winding up – standing to bring winding up application – where creditors who brought application were judgment creditors – where Defendant argued that the amount the subject of the demand was effectively paid as a result of a court ordering payment of that debt – whether the Plaintiffs have standing.

CORPORATIONS – winding up – abuse of process – where Defendant argued the winding up application was a collateral attack on orders of the Supreme Court of Queensland – whether application to wind up the company an abuse of process or brought for an improper purpose. Legislation Cited: - Corporate Law Reform Act 1992 (Cth) - Corporations Act 2001 (Cth) ss 9, 95A(1), 95A(2), 459E, 459E(2), 459E(3), 459J, 459P, 459S, 466(2), 467, 467(1), 588FE, 588FA(1) - Evidence Act 1995 (NSW) s 136