One Twenty Seven Corporation Pty Ltd (Receiver and Manager Appointed)

[1992] FCA 1072

IN THE FEDERAL COURT OF AUSTRALIA	) )
NEW SOUTH WALES DISTRICT REGISTRY	) No. NG 3043 of 1992

)
GENERAL DIVISION )

IN THE MATTER OF:ONE TWENTY SEVEN CORPORATION PTY LIMITED (Receiver and Manager Appointed)

BETWEEN:TRAVELLERS ORGANISATION LIMITED

Applicant

AND:ONE TWENTY SEVEN CORPORATION LIMITED (Receiver and Manager Appointed)

Respondent

8 May 1992

REASONS FOR JUDGMENT

LOCKHART J.

It is agreed between the applicant and the respondent that the company should be placed under the control of a provisional liquidator. The only dispute is as who that provisional

liquidator should be. The applicant seeks the appointment of

Hugh Jenner Wylie and the company resists that appointment, not on the basis that there is any suggestion of his unfitness to act or of bias, but that because at the request of a director of the company he and his firm prepared a report on the position of the company and it's finances and it might therefore appear as if he is not independent.

One must be careful in these circumstances to ensure that justice is not only done but appears to be done, and that a

provisional liquidator is not appointed if there is a reasonable
basis for a perception of bias or unfitness on his part.

It is increasingly common today for persons to be approached who are expert in the field of insolvency work to do preliminary reports, generally retained by the boards of companies, and then asked to become liquidator or provisional liquidator thereof. There is a great deal of wisdom in such a

course. I would not like to see it discouraged. On the other hand there will be circumstances where a person will disqualify

himself from being appointed liquidator or provisional

liquidator through acting in those circumstances, but I detect

no such elements in this case.

Mr Wylie is a highly respected and competent liquidator with many years experience. He has given evidence by affidavit as well as in the witness box today, and I am satisfied that he will approach his task with full independence of mind. I am not persuaded that there will be any perception to the contrary.

Accordingly, the Court makes orders in accordance with the Short Minutes of Order, dated today, initialled by me and placed with the papers which includes an order appointing Mr Wylie provisional liquidator. The costs of the applicant of the motion for the appointment of a provisional liquidator shall be its costs in the application to wind up. The Court also orders

that the costs of the company of this motion be its costs in the

application to wind up.

I certify that this and the preceding one (1) page are a true copy of the reasons for judgment herein of the Honourable Mr. Justice Lockhart.

Associate
Counsel for the Applicant : Dated: 8 May 1992

G.L. Turner

Solicitors for the Applicant :McCrohon Bergseng Partners

Counsel for the Respondent : M. Anderson

Solicitors for the Respondent :  Humphreys & Corish

Date of Hearing : 8 May 1992
Date of Judgment : 8 May 1992