Insurance & Superannuation Commissioner v Occidental Life Insurance Co. of Australia Ltd

[1993] FCA 381

JUDGMENT No. 38\ 1993 .,oemo i

IN THE FEDERAL COURT OF AUSTRALIA )

)

NEW SOUTH WALES DISTRICT REGISTRY ) NO. VG 316 of 1990

)

GENERAL DIVISION )

BETWEEN:  INSURANCE AND SUPERANNUATION
COMMISSIONER

Applicant

AND :  OCCIDENTAL LIFE INSURANCE
COMPANY OF AUSTRALIA LTD

Respondent

IN THE FEDERAL COURT OF AUSTRALIA	)
1
NEW SOUTH WALES DISTRICT REGISTRY )	No. VG 317 of 1990

)

GENERAL DIVISION )

BETWEEN:  INSURANCE AND SUPERANNUATION
COMMISSIONER

Applicant

AND:  REGAL LIFE INSURANCE LIMITED

Respondent

IN THE FEDERAL COURT OF AUSTRALIA	)
1

Respondent

NEW SOUTH WALES DISTRICT REGISTRY ) No. NG 144 of 1993

1

GENERAL DIVISION )

BETWEEN:  REGAL LIFE INSURANCE LIMITED and MERCANTILE MUTUAL LIFE INSURANCE CO LTD

Applicant

AND:	INSURANCE &	SUPERANNUATION
COMMISSION

IN THE FEDERAL COURT OF AUSTRALIA )

)

NEW SOUTH WALES DISTRICT REGISTRY )	No. NG 145 of 1993
GENERAL DIVISION	j

BETWEEN :  OCCIDENTAL LIFE INSURANCE CO OF AUSTRALIA LTD and MERCANTILE MUTUAL LIFE INSURANCE CO LTD

Applicant

AND :  INSURANCE AND SUPERANNUATION
COMMISSION

Respondent

23 April 1993

REASONS FOR JUDGMENT

LOCKHART J.

There are before the Court today a number of notices of motion and applications in these two matters which are being heard together by consent. One involves Occidental Life Insurance Company of Australia Limited, and the other involves Regal Life Insurance Limited.

In each of these matters there has been over a period of many months a number of applications made by the judicial manager. This, in effect, represents if not the final such application and motion, at any rate, the most significant motion by the judicial manager to date, because it represents the culmination of much of the work of the judicial manager. I need not traverse the history of the whole matter. It would be too extensive and is set out fully in the affidavits which I have read.

It is, I think, sufficient for me to say that it is apparent that the judicial management is being conducted in such a way that some of the statutory funds that were thought to be lost, indeed, that were in fact lost, at the beginning of the judicial management, have been to a large extent restored. What, at the beginning of the judicial management, looked like an extremely gloomy picture indeed, has become one that is much brighter than I think anyone could reasonably have anticipated at the commencement of the judicial managements in each case.

I have no doubt that that is due in no small measure to the good work that has been done by the judicial manager and those whom he has instructed to act for him in various disciplines such as the law and the actuarial field.

I am satisfied that the transfer of the remaining life insurance business of each company to Mercantile Mutual Limited on the terms which are set out in the schemes that are proposed

of both Occidental and Regal and will not disadvantage them, nor	in these matters will be in the interests of the policy owners
will it disadvantage, as I can perceive it, the policy owners of Mercantile Mutual. In my opinion, the instructions that are sought pursuant to S. 6 0 ( 7 ) of the L i f e Insurance Act should be given to the judicial manager and the con£ irmation of the schemes which is sought should also be given.
The Court makes orders in accordance with paragraphs 1 to 4 inclusive of the short minutes of order which I will number for convenience "short minutes of order No. 1" in each of the matters Occidental and Regal. The Court then gives instructions pursuant to S. 60(vii) and orders in accordance with paragraphs one and two of each of the notices of motion, one in Occidental and one in Regal, the notices of motion being dated today.
The Court also makes orders in accordance with the two sets of short minutes of order dated today, initialled by me and placed with the papers which I shall call "short minutes of order No. 2 " , and they are the minutes of order that confirm the scheme within each case.
The Court also makes orders one and two, as asked, in each of the Occidental and Regal matters, as a motion dated 31 March 1993 with respect to a claim by each company upon Bank of Melbourne Limited.

Liberty to apply is reserved on three days notice.

I certify that this and the preceding three (3) pages are a true copy of the reasons for judgment herein of the Honourable

Dated: 23 April 1993

Solicitors for the Insurance

and Superannuation Commissioner Australian Government
Solicitor

Counsel for the Judicial Manager	:	N C Hutley
Solicitors for the Judicial Manager:	Phillips Fox
Solicitors for Occidental Life

Insurance Company of Australia Ltd :	Moore & Bevans
Solicitors for Regal Life Insurance
Limited	Moore & Bevans
Date of Hearing	2 3 April  1993
Date of Judgment	2 3 April  1993