Re Custometal Engineering Pty Ltd (in liquidation)

The case of Re Custometal Engineering Pty Ltd (in liquidation) involves the liquidators, the Plaintiffs, seeking approval of their remuneration for the administration period and for work done in connection with an application. The matter was heard in the Supreme Court of Victoria. The Plaintiffs, acting as liquidators, have submitted two remuneration reports detailing the fees incurred and are seeking approval of their remuneration amounting to $40,860 (excluding GST). The Administrator believes the claimed remuneration is reasonable, all work performed was necessary and properly executed, and the quantum sought is reasonable and properly incurred. The Plaintiffs argue that the Court should determine their remuneration as no second meeting of creditors was held.

The legal issues before the Court include whether the Plaintiffs have made out a prima facie case for the payment of their remuneration and whether the remuneration claimed is reasonable. The Court must also consider the matters outlined in s 60-12 of the Practice Schedule, including whether the remuneration reports contain sufficient detail and whether the work performed was necessary and warranted. Although no objections have been raised, the Court is obligated to review the claimed remuneration. The Court must ensure that the remuneration is reasonable and properly incurred, taking into account the nature and extent of the work performed.

The Court found that the Plaintiffs had made out a prima facie case for the payment of their remuneration, as the remuneration reports provided sufficient detail. The Court was satisfied that the amounts claimed were reasonable and that the work performed was necessary and warranted. The Court noted that external administrators are entitled to reasonable remuneration for work performed after the termination of their appointment, including work done in preparation of the application for remuneration. The Court approved the Plaintiffs' remuneration for the administration period and for work done in connection with the application, amounting to $40,860 (excluding GST). The Court determined that the remuneration was reasonable and properly incurred, and approved the Plaintiffs' remuneration in full.