Filaria Pty Ltd v Proprietors of Units Plan 932

The case of Filaria Pty Ltd v Proprietors of Units Plan 932 was heard in the Supreme Court of the Australian Capital Territory. The plaintiff, Filaria Pty Ltd, sought an order for the appointment of an administrator over the defendant, a body corporate constituted by unit title owners. The application was made pursuant to s 92(2) of the Unit Titles Act 1970. The dispute arose from the management of the hotel business previously conducted on the premises, which had been converted from a single hotel into two competing hotels. The plaintiff had set up a separate hotel business, the Budget International Hotel, in part of the premises, while the majority of unit holders had appointed a new manager for the remainder of the hotel. The plaintiff claimed that the ordinary governance of the building had become impossible, and that the body corporate was in a conflict of interests and unable to properly administer the affairs of the unit holders.

The court had to decide whether the nature of the circumstances justified the appointment of an administrator of the body corporate. The court considered the relevant statutory provisions, case law on the appointment of receivers and managers, and general equitable principles. The court found that the body corporate was not precluded by law from carrying on the hotel business, as the management agreement was entered into on behalf of the unit holders as a whole. While the situation was not ideal, the court did not find any evidence of improper conduct on the part of the body corporate or conflicts of interest that would warrant the appointment of an administrator. The court held that the administration of the units and common property did not require the intervention of an administrator, and dismissed the plaintiff's claim with costs.