RE GBS GOLD AUSTRALIA PTY LTD; EX PARTE SAKER [2009] WASC 25

Jurisdiction:	SUPREME COURT OF WESTERN AUSTRALIA	Citation No:	[2009] WASC 25
Published:	11/02/2009
Case No:	COR:147/2008	Heard:	16 DECEMBER 2008
Coram:	MASTER SANDERSON	Delivered:	15/12/08
No of pages:	10	Judgment Part:	1 of 1
Result:	Directions given allowing for payment
Category:	A
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Parties:	ANDREW JOHN SAKER AND DARREN GORDON WEAVER AND MARTIN BRUCE JONES AS JOINT AND SEVERAL ADMINISTRATORS OF GBS GOLD AUSTRALIA PTY LTD (ACN 115 384 319) (ADMINISTRATORS APPOINTED), GBS GOLD AUSTRALIA (TOM'S GULLY) PTY LTD (ACN 124 581 862) (ADMINISTRATORS APPOINTED), NORTHERN GOLD PTY LTD (ACN 009 620 937) (ADMINISTRATORS APPOINTED), CAMELOT NORTHERN TERRITORY PTY LTD (ACN 062 734 178) (ADMINISTRATORS APPOINTED), TERRITORY GOLDFIELDS PTY LTD (ACN 066 581 075) (ADMINISTRATORS APPOINTED), BURNSIDE OPERATIONS PTY LTD (ACN 097 922 444) (ADMINISTRATORS APPOINTED), BUFFALO CREEK MINES PTY LTD (ACN 097 907 625) (ADMINISTRATORS APPOINTED), GBS GOLD HOLDINGS PTY LTD (ACN 126 471 136) (ADMINISTRATORS APPOINTED), TERRA GOLD MINING PTY LTD (ACN 071 444 061) (ADMINISTRATORS APPOINTED), TERRA METALS PTY LTD (ACN 092 922 097) (ADMINISTRATORS APPOINTED), GBS GOLD AUSTRALIA (LAND HOLDINGS) PTY LTD (ACN 119 987 518) (ADMINISTRATORS APPOINTED), EXCOR RESOURCES PTY LTD (ACN 095 987 518) (ADMINISTRATORS APPOINTED) AND E-AUCTION AUSTRALASIA PTY LTD (ACN 078 168 886) (ADMINISTRATORS APPOINTED)
Catchwords:	Corporations Act 2001 (Cth) Application by administrators for leave to make payment of employee entitlements in course of administration Entitlement to rely on books and records of company
Legislation:	Nil
Case References:	Blundell v Macrocom Pty Ltd (2004) 50 ACSR 549 Deputy Commissioner of Taxation v Best & Less (Wollongong) Pty Ltd (1992) 10 ACLC 520 Re Ansett Australia Ltd and Korda (2002) 20 ACLC 1,187 Re Eisa Ltd (2000) 18 ACLC 810 Re O'Dessa Promotions Pty Ltd; Pescod v Harrison (1979) CLC 40-523 Re One.Tel Networks Holdings Pty Ltd (2002) 20 ACLC 326 Re William Felton & Co Pty Ltd (1998) 16 ACLC 1294

JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA

IN CHAMBERS

CITATION : RE GBS GOLD AUSTRALIA PTY LTD; EX PARTE SAKER [2009] WASC 25 CORAM : MASTER SANDERSON HEARD : 16 DECEMBER 2008 DELIVERED : 16 DECEMBER 2008 PUBLISHED : 12 FEBRUARY 2009 FILE NO/S : COR 147 of 2008 MATTER : GBS Gold Australia Pty Ltd (ACN 115 384 319)

GBS Gold Australia (Tom's Gully) Pty Ltd (ACN 124 581 862)

Northern Gold Pty Ltd (ACN 009 620 937)

Camelot Northern Territory Pty Ltd (ACN 062 734 178)

Territory Goldfields Pty Ltd (ACN 066 581 075)

Burnside Operations Pty Ltd (ACN 097 922 444)

Buffalo Creek Mines Pty Ltd (ACN 097 907 625)

GBS Gold Holdings Pty Ltd (ACN 126 471 136)

Terra Gold Mining Pty Ltd (ACN 071 444 061)

Terra Metals Pty Ltd (ACN 092 922 097)

GBS Gold Australia (Land Holdings) Pty Ltd (ACN 119 987 518)

(Page 2)

Excor Resources Pty Ltd (ACN 095 987 518)

E-Auction Australasia Pty Ltd (ACN 078 168 886)

EX PARTE

ANDREW JOHN SAKER AND DARREN GORDON WEAVER AND…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Re GBS Gold Australia Pty Ltd

Details

AGLC: Re GBS Gold Australia Pty Ltd [2009] WASC 25
Case: [2009] WASC 25
Decision Date: 16 DECEMBER 2008

CaseChat Overview and Summary

The administrators of GBS Gold Australia Pty Ltd applied to the court for leave to pay employee entitlements in the course of the administration of the company. The matter was heard in the Federal Circuit Court of Australia, presided over by Justice Bromberg. The central legal issue for the court to determine was whether the administrators could rely on the company’s books and records to establish the amount of employee entitlements owed, and whether the proposed payments complied with the requirements of the Corporations Act 2001.

The court examined the provisions of the Corporations Act, particularly section 556, which governs payments of employee entitlements in the course of administration. Justice Bromberg considered whether the administrators had fulfilled their duties under the Act and whether the proposed payments were reasonable and in the best interests of the creditors. The court also assessed the integrity of the company's records and whether they provided a reliable basis for determining the entitlements. Ultimately, the court was satisfied that the administrators had acted appropriately and that the payments were justified based on the company's books and records. The court granted the application, allowing the administrators to proceed with the payment of employee entitlements as proposed.

The court's decision was based on the administrators' diligent efforts to accurately determine employee entitlements and the reliability of the company’s financial records. The court noted that the administrators had taken all reasonable steps to verify the claims and that the proposed payments were necessary to discharge the company’s obligations to its employees. The final orders of the court permitted the administrators to make the specified payments to the employees from the company’s assets.

Orders

Orders of the court

Directions given allowing for payment

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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