In the matter of Octaviar Limited (in liq) and Octaviar Administration Pty Ltd (in liq) [2017] NSWSC 1005

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Octaviar Limited (in liq) and Octaviar Administration Pty Ltd (in liq) [2017] NSWSC 1005 Hearing dates: 18 July 2017 Decision date: 28 July 2017 Jurisdiction: Equity - Corporations List Before: Black J Decision: The Court gives directions that the liquidators would be justified in allocating settlement proceeds in the manner proposed. Catchwords: CORPORATIONS — Winding up — Conduct of liquidation — Application for directions – where two companies settle overlapping claims against third party for global sum – where costs of proceedings borne predominantly by one company – whether liquidators would be justified in allocating settlement proceeds in manner proposed Legislation Cited: - Corporations Act 2001 (Cth), ss 477(2)(m), 479, 511 - Court Suppression and Non-publication Orders Act 2010 (NSW) - Insolvency Law Reform Act 2016 (Cth) - Corporations Regulations 2001 (Cth), reg 10.25.02(3)(h) Cases Cited: - 13 Coromandel Place Pty Ltd v CL Custodians Pty Ltd (in liq) [1999] FCA 144; (1999) 30 ACSR 37 - Coad v Wellness Pursuit Pty Ltd (in liq) [2009] WASCA 68; (2009) 40 WAR 53 - Dean-Willcocks Re Soluble Solution Hydroponics (1997) 42 NSWLR 209 - Fortress Credit Corporation II (Australia) Pty Ltd v Fletcher and Barnet as liquidators of Octaviar Administration Pty Ltd (in liq) [2015] NSWCA 85; (2015) 89 NSWLR 110 - Re Handberg (2010) 79 ACSR 373 - Re Hayes Steel Framing Systems Pty Ltd (admins apptd) [2017] NSWSC 385 - Re MF Global Australia Ltd (in liq) [2012] NSWSC 994; (2012) 267 FLR 27 - Re One.Tel Networks Holdings Pty Ltd (2001) NSWSC 1065; (2001) 40 ACSR 83 - Re One.Tel (2014) 99 ACSR 247 - Re Primespace Property Investment Limited (in liq) [2016] NSWSC 1821 - Re Universal Distributing Co Ltd (in liq) (1933) 48 CLR 171 - Stewart v Atco Controls Pty Ltd (in liq) (2014) 242 CLR 307 - Trio Capital Ltd (Admin App) v ACT Superannuation Management Pty Ltd [2010] NSWSC 941; (2010) 79 ACSR 425 Category: Procedural and other rulings Parties: Amended Interlocutory Process filed by General Purpose Liquidators William John Fletcher and Katherine Elizabeth Barnet (First Applicants on Interlocutory Process) Octaviar Limited (receivers and managers appointed (in liquidation) (Second Applicants on Interlocutory Process) Octaviar Administration Pty Ltd (in liquidation) (Third Applicant on Interlocutory Process) David John Kerr (Respondent)