Michell (Liquidator) v Delltta Holdings Pty Ltd (in liq) atf The Brookhill Trust

The case of Michell (Liquidator) v Delltta Holdings Pty Ltd (in liq) atf The Brookhill Trust involved the liquidator of a former trustee company seeking to be appointed as receiver and manager of the trust assets under section 57(1) of the Federal Court of Australia Act 1976 (Cth). The dispute arose due to the liquidator not holding sufficient assets to satisfy the liabilities incurred while the company was the trustee. The receiver and manager was appointed over the trust property to secure the trustee's right of indemnity out of the assets of the trust. The liquidator of the current trustee company did not oppose the appointment. The court was required to decide on the granting of leave to commence proceedings against the company in liquidation under section 500(2) of the Corporations Act 2001 (Cth), the appointment of the liquidator as receiver and manager, and the dispensation of the need to file a guarantee under the Federal Court Rules 2011.

The court granted leave nunc pro tunc to the plaintiff to commence and proceed with the proceedings against the defendant. The leave was granted pursuant to section 500(2) of the Corporations Act 2001 (Cth). The court appointed the plaintiff as receiver and manager over the assets of the Brookhill Trust pursuant to section 57(1) of the Federal Court of Australia Act 1976 (Cth). The court dispensed with the need for the plaintiff to file a guarantee under the Federal Court Rules 2011. The court also granted the plaintiff the powers of a receiver in respect of the assets of the Brookhill Trust, including the power to sell the assets, pay the creditors, bring claims on behalf of the trust, and execute tax returns, financial statements, or other documents relating to the trust.

The court ordered that the plaintiff be appointed without security as receiver and manager over the assets of the Brookhill Trust. The court also ordered that the need for the plaintiff to file a guarantee under the Federal Court Rules 2011 be dispensed with. The court granted the plaintiff the powers of a receiver in respect of the assets of the Brookhill Trust. The court ordered that the remuneration costs and expenses of the plaintiff both as liquidator and receiver and manager be paid from the assets of the Brookhill Trust. The court also granted liberty to apply to any person who can demonstrate sufficient interest to modify or discharge the orders on not less than 48 hours written notice to the plaintiff.