Navarac Pty Ltd v Giovanni Maurizio Carrello as the Receiver and Manager of Esperance Cattle Company Pty Ltd (Receiver and Manager Appointed) [No 2]
[2025] WASC 340
•21 AUGUST 2025
JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
IN CHAMBERS
CITATION: NAVARAC PTY LTD -v- GIOVANNI MAURIZIO CARRELLO AS THE RECEIVER AND MANAGER OF ESPERANCE CATTLE COMPANY PTY LTD (RECEIVER AND MANAGER APPOINTED) [No 2] [2025] WASC 340
CORAM: HILL J
HEARD: 30 JULY 2025
DELIVERED : 30 JULY 2025
PUBLISHED : 21 AUGUST 2025
FILE NO/S: CIV 1409 of 2016
BETWEEN: NAVARAC PTY LTD
Plaintiff
AND
GIOVANNI MAURIZIO CARRELLO AS THE RECEIVER AND MANAGER OF ESPERANCE CATTLE COMPANY PTY LTD (RECEIVER AND MANAGER APPOINTED)
First Defendant
ANN DEBORAH CATHCART
Second Defendant
ESPERANCE CATTLE COMPANY PTY LTD (RECEIVER AND MANAGERS APPOINTED)
Third Defendant
FOX & LILLIE RURAL PTY LTD
Fourth Defendant
Catchwords:
Corporations - Application for discharge of court-appointed receiver and manager - Release of receiver and manager from claims arising out of or in connection with their appointment as receiver and manager - Orders sought for passing of accounts - Turns on own facts
Legislation:
Rules of the Supreme Court 1971 (WA) O 51 r 8
Result:
Application granted
Category: B
Representation:
Counsel:
| Plaintiff | : | No appearance |
| First Defendant | : | C Breheny |
| Second Defendant | : | No appearance |
| Third Defendant | : | No appearance |
| Fourth Defendant | : | No appearance |
Solicitors:
| Plaintiff | : | No appearance |
| First Defendant | : | Hall & Wilcox |
| Second Defendant | : | No appearance |
| Third Defendant | : | No appearance |
| Fourth Defendant | : | No appearance |
Case(s) referred to in decision(s):
ASIC v GDK Financial Solutions Pty Ltd [2006] FCA 1415
Commonwealth v ABC2 Group Pty Ltd [2009] NSWSC 1442
Hutchins, in the matter of Ardenberg Pty Ltd (in liq) (administrators appointed) [No 3] [2021] FCA 519
Lunn v Savage [2006] NSWSC 240
Navarac Pty Ltd v Carrello [2016] WASC 327
HILL J:
(This judgment was delivered extemporaneously and has been edited from the transcript to include references, headings and to correct matters of grammar and expression.)
By letter dated 3 June 2025, the first defendant, Giovanni Carrello, requested that this matter be relisted for the court to consider making orders to discharge and release him from acting as receiver and manager of the assets of the third defendant, Esperance Cattle Company (Company), as well as for orders passing the accounts. The effect of these orders will be to finalise the receivership.
The basis for the application is that the purpose of Mr Carrello's appointment has now been fulfilled. The second defendant, Ann Cathcart, who is the only other active party in the matter, consents to the orders being made.
In support of the application, Mr Carrello relied on two of his affidavits filed in these proceedings on 27 June 2023 and 28 May 2025.
I have also had the benefit of a written outline of submissions from the first defendant, as well as brief oral submissions from counsel who appeared before me at today's hearing.
Factual background
On 23 March 2016, Mr Carrello was appointed by the Court as receiver and manager of the Company's cattle and sheep on Young River Station (Livestock).[1] Pursuant to these orders, the court granted Mr Carrello the power to:
(a)take possession and sell all of the Livestock in a manner that he considered appropriate;
(b)to exercise such powers as might otherwise have been conferred on a receiver and manager by s 420 of the Corporations Act 2001 (Cth) (Act); and
(c)to do all things incidental to the exercise of these powers.
[1] Orders of the Honourable Chief Justice Martin made 23 March 2016.
The orders also provided that, after payment of selling expenses, the expenses of caring and maintaining the Livestock the subject of the orders, and the receivers' remuneration, the sale proceeds were to be paid into court until further order of the court or the determination of these proceedings and separate proceedings, being COR 46 of 2016. The remuneration of Mr Carrello was ordered to be paid from the date of the orders in amounts that may be fixed from time to time by the court. The remuneration was ordered to be calculated on a time and rates basis.
The appointment of Mr Carrello as a receiver was made in circumstances where the value of the Livestock was rapidly deteriorating.[2]
[2] Navarac Pty Ltd v Carrello [2016] WASC 327 [1].
In accordance with the orders of the former Chief Justice, the Livestock have been sold.[3]
[3] Affidavit of Giovanni Maurizio Carrello filed 27 June 2023 [17] - [20].
On 23 March 2017, Ms Cathcart commenced proceedings against Mr Carrello in relation to the conduct of the receivership. These proceedings were resolved in September 2021.[4]
[4] Affidavit of Giovanni Maurizio Carrello filed 27 June 2023 [5] - [15].
Mr Carrello's evidence is that his only remaining task is to distribute the proceeds of the sale of the Livestock to the second defendant, who is the mortgagee in possession of the Company. He anticipates the distribution will be a little over $260,000, less the legal fees that have been incurred in this application.[5]
[5] Affidavit of Giovanni Maurizio Carrello filed 28 May 2025, 'GC-193', 'GC-194'.
Notice of Mr Carrello's intention to make this application has been given to Ms Cathcart. Ms Cathcart consents to the orders that are sought by Mr Carrello. The liquidator of the Company was advised some time ago of the intention to make the application. No substantive response has been received from the Company's liquidator, who did not appear at the hearing today or seek to oppose these orders.
Should Mr Carrello be discharged from acting as receiver and manager of the Company?
It is not in dispute that a court-appointed receiver and manager may be discharged by an order of the court.[6]
[6] ASIC v GDK Financial Solutions Pty Ltd [2006] FCA 1415 [29]; Commonwealth v ABC2 Group Pty Ltd [2009] NSWSC 1442 [26] - [27].
I am satisfied, in the circumstances of this case, that it is appropriate to make orders to discharge Mr Carrello. On the evidence before me, I accept that the purpose for which he was appointed as receiver and manager has been achieved, namely the completion of the sale of the Livestock.[7]
[7] Lunn v Savage [2006] NSWSC 240 [8]; Commonwealth v ABC2 Group Pty Ltd [27].
As a consequence of the resolution of the proceedings between Mr Carrello and Ms Cathcart, all claims relating to the receivership have now been resolved.[8]
[8] Commonwealth v ABC2 Group Pty Ltd [27] - [28].
For this reason, Mr Carrello also seeks an order for a release, and that, after he is discharged, he not be liable for any breaches that may have occurred during the receivership.
I accept that I have power to make an order that will protect a court officer from all liability for acts done in the course of his duties.[9] Mr Carrello's evidence is that he completed most of his tasks as a receiver and manager in 2016 with the sale of the Livestock, but did not seek to be discharged, or to seek a release to be given, until after the resolution of the claims that were made by Ms Cathcart.
[9] Hutchins, in the matter of Ardenberg Pty Ltd (in liq) (administrators appointed) [No 3] [2021] FCA 519 [11] - [13].
On the basis of the evidence before me, and the consent to the orders that has been given by Ms Cathcart, I am satisfied it is appropriate to make orders to grant the release sought. Such release will take effect on the date of Mr Carrello's discharge as receiver and manager.
Should the orders as to the passing of accounts be made?
Mr Carrello also seeks orders for the passing of final accounts of the receivership as required by O 51 r 8 of the Rules of the Supreme Court 1971 (WA) (Rules).
Mr Carrello's affidavits set out the accounts of the receivership and include records of the receipts and payments that have been made by him. On the basis of this evidence, I accept that it is appropriate to make the orders sought for the passing of the accounts, and that these accounts are reasonable.
Conclusion and orders
For these reasons, it is my view that it is appropriate to make orders broadly in terms of the memorandum of consent orders.
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
KS
Associate to the Hon Justice Hill
21 AUGUST 2025
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