Mutton (Liquidator), in the matter of Balsub Pty Ltd (In Liquidation)

The matter before the court involved Balsub Pty Ltd, a former corporate trustee company in liquidation, and the liquidator appointed to handle its affairs. The primary dispute was whether the liquidator could deal with the trust assets of the BF Trust without specific court orders, given that Balsub had been wound up and no replacement trustee had been appointed. The court was required to decide on several legal issues, including whether Balsub operated as a trustee, whether the liquidator could be granted authority to deal with the trust assets, and whether the liquidator could be relieved from liability for past dealings with trust property.

The court examined the trust deed and the operational details of Balsub to determine whether it acted as a trustee. The Liquidator argued that Balsub traded as a trustee based on several factors, such as the existence of trust documents, separate accounting for trust activities, and the use of Balsub's name as trustee on various documents. The court acknowledged these factors and concluded that Balsub indeed operated as a trustee. Consequently, the court granted the liquidator the authority to deal with the trust assets as requested. However, the court denied the liquidator's request for relief from liability for past dealings with trust property, stating that further material was required before such relief could be considered.

The court's orders included granting Balsub the power to sell or otherwise dispose of trust property, compromise claims, and bring claims on behalf of the trust. Additionally, the court ruled that the liquidator's costs associated with the application should be paid from the trust assets and granted liberty to apply for modifications to the orders. The liquidator was also given leave to provide further evidence regarding the relief from liability for past dealings with trust property.