In the matter of Mikcon Group Australia Pty Ltd (in liq)

Mikcon Group Australia Pty Ltd, in liquidation, sought to enforce a guarantee provided by a director to cover amounts payable under a deed of company arrangement. The dispute centred on the calculation of interest on the guaranteed amount. The matter was heard in the Supreme Court of New South Wales. The court was tasked with determining the correct method for calculating the interest on the guaranteed sum, which was not explicitly defined in the guarantee agreement. Additionally, the court had to consider whether the liquidators should be appointed as trustees for the sale of certain property, pursuant to section 66G of the Conveyancing Act 1919 (NSW), to resolve a co-ownership issue.

The court examined the terms of the guarantee and the applicable statutory provisions to determine the appropriate interest calculation. The liquidator argued for a specific interest rate, while the director contended for a different method. The court also deliberated on the appointment of liquidators as trustees for the sale of the property, assessing whether such an appointment would facilitate the resolution of the co-ownership issue effectively. The primary legal issues revolved around the interpretation of the guarantee agreement and the applicability of section 66G of the Conveyancing Act in the context of the property dispute.

The court ruled in favour of the liquidator, determining that the interest should be calculated in accordance with the method proposed by the liquidator. The judge found that the terms of the guarantee, coupled with relevant statutory provisions, supported the liquidator's interpretation. Regarding the property, the court decided that appointing the liquidators as trustees for the sale was appropriate, as it would expedite the resolution of the co-ownership issue and enable the distribution of any proceeds to creditors. The court's decision was grounded in a detailed analysis of the contractual terms and statutory requirements, ensuring a fair and legally sound outcome.

The final orders included the enforcement of the guarantee with interest calculated as per the liquidator's method, and the appointment of the liquidators as trustees for the sale of the property to resolve the co-ownership dispute. These orders were designed to achieve an equitable distribution of assets and to facilitate the efficient winding up of the company's affairs.