In the matter of Blujack Pty Limited (in liquidation) [2016] NSWSC 685

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Blujack Pty Limited (in liquidation) [2016] NSWSC 685 Hearing dates: 18 April 2016 Decision date: 18 April 2016 Jurisdiction: Equity - Corporations List Before: Black J Decision: Directions made that liquidator of company is entitled to proceed on the basis that company holds certain property as trustee for certain trusts; company is entitled to be indemnified from assets of relevant trusts for liabilities properly incurred as trustee; and assets of trusts may be realised to satisfy relevant indemnities. Order for liquidator to be appointed as receiver of specified property and other assets of trusts for purpose of giving effect to relevant indemnities and ancillary orders to be made. Order that liquidator, in his capacity as receiver, be entitled to proper costs on an indemnity basis from the property of the trusts. Catchwords: CORPORATIONS — Winding up — Directions sought under s 479(3) of the Corporations Act 2001 (Cth) — where liquidator of company that was corporate trustee of certain trusts sought various directions – where direction was sought that company holds certain property as trustee for certain trusts – where direction was sought that company is entitled to indemnification from assets of the relevant trusts for liabilities properly incurred as trustee – where direction was sought that assets of the trusts may be realised to satisfy relevant indemnities – where liquidator sought appointment as receiver of the assets of the trusts to give effect to the relevant indemnities – whether company is entitled to indemnification from trust assets for liabilities properly incurred as trustee and whether that right exists even where company is no longer trustee – whether liquidator of corporate trustee may be appointed as receiver of trust assets by way of enforcement of trustee's right of indemnity. Legislation Cited: - Corporations Act 2001 (Cth), ss 477, 479, 1323 - Supreme Court Act 1970 (NSW), s 67 Cases Cited: - Re Stansfield DIY Wealth Pty Ltd (in liq) [2014] NSWSC 1484; (2013) 103 ACSR 401 - Kerr, Re Angel's Castle Pre-School Pty Ltd (in liq) [2010] FCA 786 - Re Gramarker Pty Limited; Clifford Sanderson (as liquidator of Gramarker Pty Limited) v Simon Kerr [2014] NSWSC 243 Category: Procedural and other rulings Parties: Blujack Pty Limited (in liquidation) (Applicant) Representation: Counsel: F F F Salama (Applicant)