Rathner in his capacity as Official Liquidator of Kalimand Pty Ltd (in liq) v Hawthorn

The case involved the Official Liquidator of Kalimand Pty Ltd, in liquidation, suing Hawthorn, a former director of Kalimand, and another respondent, to recover assets and payments made to Hawthorn that the Liquidator claimed were voidable transactions under the Corporations Act 2001 (Cth). The Liquidator alleged that certain transactions, including a transfer of stock and trade debtors, were made while Kalimand was insolvent or became insolvent because of those transactions. The Liquidator also sought to adduce statements made by Hawthorn during a public examination as evidence against the respondents.

The court had to determine whether the statements from the public examination could be admitted as evidence against the respondents, and if so, on what basis. Additionally, the court had to decide if certain transactions were voidable under the Corporations Act and if the respondents were liable for the claimed amounts. The court found that the statements were admissible under the Evidence Act 1995 (Cth) as they were relevant and important to the case. The court also found that the respondents were liable for certain transactions. The court ordered the respondents to pay specific amounts to the Liquidator and awarded costs.

The orders of the court included directing the second respondent to pay $60,000 to the second applicant, and that the second respondent pay the applicants’ costs of and incidental to their claim to recover the transfer, to be taxed unless agreed.