In the matter of Jacks Corner Pty Ltd (in liquidation)

In the case of Jacks Corner Pty Ltd (in liquidation), the liquidators of a former trustee of a unit trust sought to be appointed as receivers and managers of the trust assets. The basis for this request was an equitable charge security right, and the liquidators also sought to be indemnified out of the trust assets. The current trustee opposed the appointment, arguing that the costs of winding up the former trustee were due to a breach of trust, and thus the liquidators were not entitled to have their remuneration paid from the trust assets. Despite the opposition, the court appointed the liquidators as receivers and managers.

The legal issues before the court involved determining whether the liquidators could enforce the equitable charge and be indemnified out of the trust assets, despite the opposition from the current trustee. Additionally, the court had to address the issue of whether leave should be granted for a late application to amend pleadings. The liquidators made their application late on the first day and early on the second day of the two-day hearing. The current trustee argued that granting leave would be inconsistent with the overriding purpose and the dictates of justice and a just resolution of the proceedings.

The court ruled that the liquidators could be appointed as receivers and managers of the trust assets, enforcing the equitable charge. The court found that the current trustee's opposition did not outweigh the equitable charge's validity. However, concerning the late application to amend pleadings, the court refused leave, stating that granting such leave would not align with the overriding purpose and the principles of justice and a fair resolution of the proceedings. The court did not see any principle at stake that would warrant granting the late amendment.

The final orders of the court were that the liquidators were appointed as receivers and managers of the trust assets, enforcing the equitable charge. The court did not grant leave for the late application to amend pleadings.