Kaso (administrator), in the matter of Sanitation Maintenance Services Pty Ltd (administrators appointed)

In the case of Kaso (administrator), in the matter of Sanitation Maintenance Services Pty Ltd (administrators appointed), the applicants, acting as administrators for several companies, sought orders to manage the trust property held by the companies. The companies had been operating as trustees for their respective trusts, holding property in this capacity. Upon the administrators' appointment, the companies became bare trustees of these trusts. The administrators applied for relief from liability for past dealings with the trust property and sought orders to deal with the trust property in accordance with a deed of company arrangement (DOCA) that had been executed. They also sought remuneration and expenses to be paid out of the trust property.

The court had to determine whether the administrators were justified in their actions and whether they were entitled to be indemnified for their costs and expenses out of the trust property. The administrators argued that their actions were honest and reasonable, and that they had informed the companies' creditors about their intentions. The court accepted the administrators' contentions and granted the relief sought. The court held that the administrators were entitled to be indemnified for their costs and expenses from the trust property, as the companies had no assets in their own right and operated solely as trustees for the trusts.

In summary, the court granted the administrators' application, relieving them from any liability arising from their dealings with the trust property. The court also confirmed that the administrators were entitled to be paid for their remuneration, costs, and expenses out of the trust property. The court ordered that notice of the orders be given to potentially interested parties and provided liberty to apply to modify the orders if necessary.