L. Grollo & Co Pty Ltd v Nu-Statt Decorating Pty Ltd (in Liquidation)

In the matter of L. Grollo & Co Pty Ltd v Nu-Statt Decorating Pty Ltd (in Liquidation), the plaintiff sought to enforce a judgment debt against the defendant, which was in liquidation. The plaintiff filed an action in the Supreme Court of Victoria, which the defendant challenged on the grounds that the court lacked jurisdiction to hear the case. The defendant argued that, under section 263(2) of the Companies Act, leave of the court was required before proceeding with an action against a company in liquidation.

The court needed to determine whether the action could proceed against a company in liquidation and, if not, whether leave should be granted to proceed. The court considered whether the plaintiff's right to seek enforcement of the judgment debt was prejudiced by the defendant's liquidation and whether there were any grounds to grant leave under section 263(2) of the Companies Act.

The court held that the plaintiff's action against the defendant company in liquidation was stayed as the court did not have jurisdiction to hear the case without leave. The court found that there was no basis to grant leave to proceed against the defendant company in liquidation, and thus the plaintiff's action was stayed pending further order. The court also ordered that the plaintiff pay the defendant's costs of and incidental to this application.