Onefone Australia Pty Limited v One.Tel Limited (in liquidation)

The parties to the case were Onefone Australia Pty Limited, the plaintiff, and One.Tel Limited (in liquidation), the defendant. The dispute centred on the remuneration sought by the special purpose liquidator for their services in liquidating One.Tel Limited. The matter was heard in the Federal Court of Australia. The primary issue before the court was whether it was appropriate to make a final payment to the special purpose liquidator while proceedings to remove the liquidator were pending.

The court considered the role and responsibilities of the special purpose liquidator, and the statutory provisions that govern their remuneration. It noted that the liquidator was entitled to be paid for their services, but that the court had to balance this against the interests of the creditors and shareholders of the company in liquidation. The court also had to consider the impact of the pending proceedings to remove the liquidator on the assessment and quantification of the liquidator's claim. The court held that it was not appropriate to make a final payment to the special purpose liquidator while the proceedings to remove the liquidator were pending, as this could potentially prejudice the outcome of those proceedings. Instead, the court ordered that the liquidator's claim be assessed and quantified by the registrar, who recommended payment of the amount sought by the liquidator. The court accepted the registrar's recommendation and ordered that the liquidator be paid the recommended amount.