In the matter of Azmac Pty Limited (in liquidation) (No 2) [2020] NSWSC 363

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Azmac Pty Limited (in liquidation) (No 2) [2020] NSWSC 363 Hearing dates: On the papers, last submissions received 20 March 2020 Decision date: 07 April 2020 Jurisdiction: Equity - Corporations List Before: Rees J Decision: Liquidator to pay the plaintiff's costs in the proceedings personally and not from the assets of the company in liquidation Catchwords: CORPORATIONS – liquidators – whether defendant liquidator personally liable for costs – whether liquidator entitled to pay costs from assets of company in liquidation – principles at [3]-[20] – liquidator provoked the litigation – liquidator's actions infused with self-interest – adversarial stance – wholly failed –liquidator's conduct unreasonable – unjust for creditors including plaintiff to bear liquidator's costs via remaining assets of company in liquidation Legislation Cited: Corporations Act 2001 (Cth), ss 51E, 556(1) Income Tax Assessment Act 1936 (Cth), s 264 Cases Cited: Adsett v Berlouis (1992) 109 ALR 100; (1992) 37 FCR 201 AMC Commercial Cleaning (NSW) Pty Limited v Coade (No 2) [2013] NSWSC 332 AMC Commercial Cleaning (NSW) Pty Ltd v Stephen Keith Coade; Rockcliffs Solicitors & IP Lawyers v Schon Condon as liquidator of AMC Commercial Cleaning (NSW) Pty Ltd [2013] NSWSC 192; (2013) 16 BPR 31 Commissioner of Taxation v Warner (No 2) [2015] FCA 1281 Damcevski v Demetriou [2018] NSWSC 1915 In Lum v MV Developments (Lane Cove) Pty Limited (in liquidation) (No 2) [2018] NSWSC 1129 In re Beddoe; Downes v Cottam [1893] 1 Ch 547 In the matter of Azmac Pty Limited (in liq) [2020] NSWSC 204 In the matter of JA Westaway Pty Limited (in liquidation) [2016] NSWSC 868 Lum v MV Developments (Lane Cove) Pty Limited (in liquidation) [2016] NSWSC 1248 Maylord Equity Management Pty Limited v ReelTime Media Limited (No 2) [2008] NSWSC 1133 Mead v Watson as Liquidator for Hypec Electronics (2005) 23 ACLC 718; [2005] NSWCA 133 Melhelm Pty Ltd v Boka Beverages Pty Ltd (in liq) (No 2) [2019] FCA 1809 Re Universal Distributing Co Limited (in liq) (1933) 48 CLR 171; [1933] ALR 107 Re Wilson Lovatt & Sons Ltd [1977] 1 All ER 274 Silvia v Brodyn Pty Ltd (2007) 25 ACLC 385; [2007] NSWCA 55 Stewart v Atco Controls Pty Limited (in liq) (2014) 252 CLR 307; [2014] HCA 15 Category: Costs Parties: Stylequity Advisory (Australia) Pty Limited (Plaintiff) Schon Condon as liquidator of Azmac Pty Limited (First Defendant) Azmac Pty Limited (in liquidation) (Second Defendant) Representation: Counsel: Mr DS Weinberger (Plaintiff) Mr DC Eardley (Defendants)