In the matter of Mustang Marine Australia Services Pty Ltd (in liquidation) [2015] NSWSC 2152

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Mustang Marine Australia Services Pty Ltd (in liquidation) [2015] NSWSC 2152 Hearing dates: 17 December 2015 Date of orders: 17 December 2015 Decision date: 17 December 2015 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: Compromise approved. Catchwords: PROCEDURE – application by liquidator for approval of compromise of proceedings – Court not required to go behind liquidator's commercial judgment, particularly where acting on legal advice – whether there is a 'debt' under (CTH) Corporations Act 2001, s 477(2A) – Court should treat claim as debt rather than declining relief due to possible lack of jurisdiction – where compromise entered into with no lack of good faith and not on erroneous view of law or principle – where no good reason to doubt prudence of compromise. Legislation Cited: (CTH) Corporations Act 2001, s 477(2A), s 479(3), s 588G Cases Cited: Elderslie Finance Corporation Limited v Newpage Pty Ltd (No 6) [2007] FCA 1030; (2007) 160 FCR 423 Engineered Thermal Systems Pty Ltd v Salmon [2012] FCA 1159 QBE Workers Compensation (NSW) Limited v G J Formwork Pty Ltd (2006) 56 ACSR 687; [2006] NSWSC 98 Re HIH Insurance Limited [2004] NSWSC 5 Category: Procedural and other rulings Parties: Mitchell Ball in his capacity as official liquidator of Mustang Marine Australia (Services) Pty Ltd (in liquidation) (first plaintiff) Mustang Marine Australia Services Pty Ltd ACN 129 124 223 (second plaintiff) Standard Bank Asia Ltd (first defendant) Russell Watkins (second defendant) Martin Sheridan Lodge (third defendant) Phillip Armstrong (fourth defendant) Christopher Heaton (fifth defendant) Standard Bank PLC (sixth defendant) Representation: Counsel: D L Cook (plaintiff/applicant) By consent (defendants) Minter Ellison Lawyers (first and sixth defendants) William James Lawyers (second defendant) DLA Piper Australia (third and fourth defendants)