In the matter of Bitar Pty Ltd [2015] NSWSC 2158

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Bitar Pty Ltd [2015] NSWSC 2158 Hearing dates: 12 October 2015 Date of orders: 12 October 2015 Decision date: 12 October 2015 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: Winding up order made. Catchwords: CORPORATIONS – winding up – winding up in insolvency – failure to comply with creditor's statutory demand – application to stay proceedings – stay until completion of assessment of legal costs – where legal profession legislation prevents commencement or maintenance of proceedings to recover legal costs the subject of application for assessment – whether winding up proceedings seek to recover costs – winding up proceedings not proceedings for debt recovery – whether company may rely upon pending cost assessment proceedings to dispute existence or amount of debt – (CTH) Corporations Act 2001, s 459S – requirement of leave – where not material to proving solvency – application to adjourn proceedings – where other proceedings in which company may have successful claim pending – no evidence as to nature or strength of claim – dependence on other proceedings to pay debt indicative of present insolvency. Legislation Cited: (CTH) Corporations Act 2001, s 459G, s 459S (NSW) Legal Profession Act 2004, s 355 (NSW) Legal Profession Uniform Law, s 198(7) Cases Cited: TS Recoveries Pty Ltd v Sea-Slip Marinas (Australia) Pty Ltd [2007] NSWSC 1074; (2007) 25 ACLC 1371 Category: Principal judgment Parties: Bitar Pty Ltd ACN 090 407 579 (applicant/defendant) PMF Legal Pty Ltd ACN 155 497 153 (respondent/plaintiff) Representation: Counsel: J Loxton (applicant/defendant) P Fordyce (respondent/plaintiff)