In the matter of Australasian Barrister Chambers Pty Ltd

Australasian Barrister Chambers Pty Ltd (ABC) applied for the appointment of a liquidator as receiver of a trust asset to enforce its right of indemnity as a former trustee. The application arose from ABC's role as custodian trustee of strata title lots for the respondent, which held its assets as trustee of a self-managed super fund. ABC had transferred the units to the respondent and relinquished its position as trustee but retained its right to indemnity. The issue was whether the right of indemnity extended to assets of which ABC had not been trustee, and if not, whether the right of indemnity could be enforced through the liquidation process to satisfy ABC's liabilities.

The court held that the right of indemnity only extended to assets of which ABC had been trustee. As the only way to satisfy ABC's liabilities was through enforcement of the right of indemnity, and there was no satisfactory common law remedy, the court appointed a liquidator as receiver of the trust asset. The court found that this was an appropriate method to enforce the right of indemnity and satisfy ABC's liabilities.

The orders of the court were that a liquidator be appointed as receiver of the trust asset to enforce the right of indemnity, and that the liquidator be given the power to take possession of the trust asset and realise it to the extent necessary to satisfy ABC's liabilities. The court also ordered that the liquidator be given the power to bring any proceedings necessary to enforce the right of indemnity, and that the liquidator be given the power to take any other action necessary to enforce the right of indemnity.