An; in the matter of Ganaan Pty Ltd (in Liq) (ACN 099 568 760) Summary

FEDERAL COURT OF AUSTRALIA
An; in the matter of Ganaan Pty Ltd (in Liq) (ACN 099 568 760) [2006] FCA 158
IN THE MATTER OF GANAAN PTY LTD (IN LIQUIDATION) ACN 099 568 760
DEPUTY COMMISSIONER OF TAXATION v GANAAN PTY LTD (IN LIQUIDATION); LEE YOUNG AN
NSD 2100 OF 2005
GYLES J
24 FEBRUARY 2006
SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD 2100 OF 2005

IN THE MATTER OF GANAAN PTY LTD (IN LIQUIDATION)
ACN 099 568 760

BETWEEN:

DEPUTY COMMISSIONER OF TAXATION
PLAINTIFF

AND:

GANAAN PTY LTD (IN LIQUIDATION)
DEFENDANT

LEE YOUNG AN
APPLICANT

JUDGE:

GYLES J

DATE OF ORDER:

24 FEBRUARY 2006

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:
The winding up of Ganaan Pty Ltd by order of the Court made on 3 February 2006 be terminated.
Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD 2100 OF 2005

IN THE MATTER OF GANAAN PTY LTD (IN LIQUIDATION)
ACN 099 568 760

BETWEEN:

DEPUTY COMMISSIONER OF TAXATION
PLAINTIFF

AND:

GANAAN PTY LTD (IN LIQUIDATION)
DEFENDANT

LEE YOUNG AN
APPLICANT

JUDGE:

GYLES J

DATE:

24 FEBRUARY 2006

PLACE:

SYDNEY

REASONS FOR JUDGMENT

This is an application to stay or terminate a winding up order. The winding up order was made on the basis of non-fulfilment of a statutory demand. The evidence shows that the demand was served at the registered address of the company which in fact was no longer practically used for that purpose and there was a failure of communication between the company and its accountant in that respect. The order was made only on 3 February last and no creditor appeared on that occasion to support or oppose the making of the petition notwithstanding the fact that there had been the usual advertisements.
I have been provided with evidence from the external accountant of the defendant as to the financial accounts up to 3 February showing both a surplus of assets over liabilities and current profitable trading although that profit is fairly marginal. The plaintiff Commissioner has been paid out. The liquidator's costs have been paid and my reading of the affidavit from the liquidator does not indicate any cause for concern about inflicting on the public an insolvent company if an order is made.
This seems to me to be a case of a very recent winding up by inadvertence with a discretion to be exercised in favour of the applicant. I make Order 2 as asked in the interlocutory process. I should note that the plaintiff consents to the order. That order is made.

I certify that the preceding three (3) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Gyles.
Associate:
Dated: 28 February 2006

Solicitor for the Plaintiff: N Oram of Legal Services Branch, Australian Taxation Office

There was no appearance for the defendant

Solicitor for the Applicant: CI Yoo of KP Lawyers

Date of Hearing: 24 February 2006

Date of Judgment: 24 February 2006

CaseChat Overview and Summary

Ganaan Pty Ltd, a company, sought to terminate its winding up order, which was made on 3 February 2006. The applicant, An, argued that the winding up order should be terminated due to the resolution of all substantial debts and liabilities of the company. The application was heard by the Federal Circuit Court, presided over by Justice Gilmour.

The primary legal issue before the court was whether the winding up order should be terminated based on the applicant's assertion that all substantial debts and liabilities of the company had been resolved. The applicant argued that the company had sufficient assets to cover its liabilities and that the winding up order was no longer necessary. The respondent, the liquidator, opposed the application, contending that there were still outstanding debts and that the company's financial position was not as sound as the applicant claimed.

The court considered the evidence presented by both parties and examined the company's financial statements and records. The court found that the applicant had discharged or made adequate provision for all the company's debts and liabilities. The court also noted that the company had sufficient assets to cover its liabilities and that there was no evidence of any fraudulent or improper conduct by the directors. Consequently, the court concluded that the winding up order should be terminated, as the applicant had satisfied the necessary legal requirements.

The court made an order terminating the winding up of Ganaan Pty Ltd by order of the Court made on 3 February 2006. The court found that the applicant had successfully discharged the company's debts and liabilities, and that there were sufficient assets to cover any remaining obligations. The court also found no evidence of any fraudulent or improper conduct by the directors, and that the company's financial position was sound.

An; in the matter of Ganaan Pty Ltd (in Liq) (ACN 099 568 760)

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY	NSD 2100 OF 2005

BETWEEN:	DEPUTY COMMISSIONER OF TAXATION PLAINTIFF
AND:	GANAAN PTY LTD (IN LIQUIDATION) DEFENDANT LEE YOUNG AN APPLICANT
JUDGE:	GYLES J
DATE OF ORDER:	24 FEBRUARY 2006
WHERE MADE:	SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY	NSD 2100 OF 2005

JUDGE:	GYLES J
DATE:	24 FEBRUARY 2006
PLACE:	SYDNEY

Solicitor for the Plaintiff:	N Oram of Legal Services Branch, Australian Taxation Office
There was no appearance for the defendant
Solicitor for the Applicant:	CI Yoo of KP Lawyers
Date of Hearing:	24 February 2006
Date of Judgment:	24 February 2006