Carter in the matter of Damilock Pty Ltd (in Liquidation)

The matter before the court was an application by Australia and New Zealand Banking Group Ltd, seeking an order that the available funds held by the plaintiffs be applied in their favour. The plaintiffs were Damilock Pty Ltd (in Liquidation) and its liquidators, who had funds available from the liquidation of the company. The primary legal issue before the court was whether the available funds should be paid to the plaintiffs or to Australia and New Zealand Banking Group Ltd. This was a dispute between the plaintiffs and the bank regarding which party was entitled to the available funds.

The court found that the available funds should be applied in payment to Australia and New Zealand Banking Group Ltd. The court noted that the plaintiffs had not provided any evidence to support their claim to the funds and that the bank had a registered charge over the company's assets, which included the available funds. The court also noted that the plaintiffs had not provided any evidence to demonstrate that the funds were not subject to the bank's charge. As such, the court found that the bank was entitled to the available funds.

In light of the above, the court ordered that the available funds held by the plaintiffs be applied in payment to Australia and New Zealand Banking Group Ltd, subject to the payment of proper fees and disbursements of the plaintiffs. The court also ordered that the costs of the plaintiffs of this application be costs in the liquidation of Damilock Pty Ltd (In Liquidation). This decision provides guidance to liquidators and creditors regarding the priority of claims in a liquidation and the importance of providing evidence to support any claims to available funds.