In the matter of Hilbon Transport Pty Limited

Hilbon Transport Pty Limited was subject to a winding up petition, with the respondent liquidator seeking to compel the company to retain its books and records for inspection. The dispute involved whether the liquidator was entitled to demand the preservation of the company's books and whether the court could mandate such preservation, especially considering legislative changes. The case was heard in the Federal Court of Australia.

The court needed to determine the extent of the liquidator's powers under the repealed Corporations Act and the new Insolvency Law Reform Act. A particular issue was whether the liquidator's demand for book retention was valid post the introduction of the Insolvency Law Reform Act, which amended the relevant sections of the Corporations Act. The court also needed to consider the implications of the company's alleged destruction of its books early in the winding-up process and whether this conduct warranted any sanctions against the company.

The court held that the liquidator's demand for the preservation of books was valid and enforceable under the repealed Corporations Act, section 542. It concluded that the Insolvency Law Reform Act did not retrospectively affect the liquidator's rights or the obligations of the company concerning book retention. The court emphasised that the early destruction of books by the company was an irregularity and highlighted the importance of preserving records in the winding-up process. As a result, the court ordered Hilbon Transport Pty Limited to comply with the liquidator's request and retain its books for inspection.