Re: Crystal Gate Pty Ltd (Administrators Appointed)

Urban Homes Pty Ltd, Interlink Holdings Pty Ltd and Brian Maloney, trading as Crystal Gate Pty Ltd, were successful in their claim against the liquidators of the company for the return of a deposit paid to the company under a building contract. The former administrators of the company, Messrs Khatri and Peldan, also sought remuneration for their services. The court was required to determine whether the deposit was a preferential payment under the Corporations Act 2001, and if so, whether it was recoverable by the applicants. The court also needed to determine the amount of remuneration, if any, that the former administrators were entitled to.

The court found that the deposit was a preferential payment as it was made within six months of the company's liquidation and was for the purpose of enabling the company to complete the building contract. The court held that the deposit was recoverable by the applicants as they were not parties to the contract of service with the company and had no knowledge of the company's insolvent circumstances at the time of the payment. The court also found that the former administrators were entitled to $31,701.06 in remuneration for their work in that capacity.

Pursuant to section 564 of the Corporations Act 2001, the liquidators of Crystal Gate Pty Ltd were ordered to pay the sum of $283,116.14 to the applicants in priority to the claims of all unsecured creditors and the former administrators of the company. The court declared that the former administrators, Messrs Khatri and Peldan, were entitled to $31,701.06 remuneration for their work in that capacity. The costs of the application were reserved.