In the matter of Direct Acceptance Corporation Ltd (Receiver Appointed) (in Liquidation) [2019] NSWSC 395

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Direct Acceptance Corporation Ltd (Receiver Appointed) (in Liquidation) [2019] NSWSC 395 Hearing dates: 1 April 2019 Decision date: 11 April 2019 Jurisdiction: Equity Before: Ward CJ in Eq Decision: (1) Direct the plaintiff to advise my Associate within 7 days of any amendment sought to the proposed orders. (2) Direct the plaintiff to forward to my Associate within 7 days copies of Schedules 1, 2 and 3 to be annexed to the proposed orders with a view to those orders being made in chambers forthwith thereafter. Catchwords: CORPORATIONS — Receivers and managers — Powers — Application to court for directions regarding a proposed final distribution to beneficiaries –– section 424 of the Corporations Act 2001 (Cth) –– whether could treat noteholders who would receive a distribution of less than $25 as having no entitlement –– whether could distribute the remaining funds only to those noteholders who responded ––whether any residual funds after the distribution could be paid to the NSW Trustee and Guardian or to the Company's liquidator Legislation Cited: Bankruptcy Act 1966 (Cth), s 140(9) Bankruptcy Regulations 1996 (Cth), reg 6.21 Corporations Act 2001 (Cth), ss 424, 553E, 554, 601AD Insolvency Practice Schedule (Corporations) 2016 (Cth), Div 90 Trustee Act 1925 (NSW), ss 47 and 95 Unclaimed Money Act 1995 (NSW), s 7(1)(a) Cases Cited: Carson; in the matter of Hastie Group Limited (No 3) [2012] FCA 719; Georges & McCluskey in their capacity as Liquidators of Radiata Plantations Ltd (In Liquidation) v Radiata Plantations Ltd (In Liquidation) [2009] NSWSC 994 Georges v Seaborn International (Trustee), in the matter of Sonray Capital Markets Pty Ltd (in liq) (2012) 288 ALR 240; [2012] FCA 75 Hawke v Daniel Efrat Consulting Service Pty Ltd (1999) 17 ACLC 733 Korda v Silkchime Pty Ltd (2010) 243 FLR 269; [2010] WASC 155 Preston, in the matter of Sandalwood Properties Ltd [2018] FCA 547 Re Ansett Australia Ltd (2001) 39 ACSR 355; [2001] FCA 1439 Re Arcabi Pty Ltd (Receivers & Managers Appointed) (in liq); Ex Parte Theobald (2014) 288 FLR 236; [2014] WASC 310 Re BBY Limited (Receivers and Managers appointed) (in liquidation) (No 2) [2018] NSWSC 346 Re Bevillesta Pty Ltd (2011) 254 FLR 324; [2011] NSWSC 417 Re Dungowan Manly Pty Ltd (in liquidation) (2017) 124 ACSR 218; [2017] NSWSC 1771 Re HIH Insurance Limited (in liquidation) [2018] NSWSC 1886 Re International Art Holdings Pty Ltd (admin apptd) (2011) 85 ACSR 1; [2011] NSWSC 164; Re Mirabela Nickel Ltd (receivers and managers appointed) (in liq); ex parte Madden [2018] WASC 335 Re Octaviar Administration Pty Ltd (in liq) [2017] NSWSC 1556 Re Odessa Promotions Pty Ltd (in liq); Pescod v Harrison(1979) CLC 40-523 Re One.Tel Networks Holdings Pty Ltd (2001) 40 ACSR 83; [2001] NSWSC 1065 Re Stream Customised Claims Pty Ltd (Recs and Mgrs Apptd) (In Liq) [2018] NSWSC 1812 Re Westnet WA Infrastructure Holdings Limited (2015) 106 ACSR 583; [2015] NSWSC 658 Category: Principal judgment Parties: Martin Madden in his capacity as Receiver of Direct Acceptance Corporation Ltd (Receiver Appointed) (in Liquidation) (Plaintiff) Representation: Counsel: D Krochmalik (Plaintiff)