Re RM Road Services Pty Ltd (in liq) & Ors

IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE
COMMERCIAL COURT

CORPORATIONS LIST

S ECI 2023 05131

IN THE MATTER of RM ROAD SERVICES PTY LTD (IN LIQUIDATION) (ACN 609 113 037), ROADMASTER TRAFFIC MANAGEMENT PTY LTD (IN LIQUIDATION) (ACN 601 193 391) AS TRUSTEE FOR THE ROADMASTER TRAFFIC MANAGEMENT TRUST (ABN 23 708 998 744) AND ROADMASTER LINE MARKING PTY LTD (IN LIQUIDATION) (ACN 163 486 431)

BETWEEN:

SHANE JUSTIN CREMIN and BRETT LEIGH MORGAN IN THEIR CAPACITY AS JOINT AND SEVERAL LIQUIDATORS OF RM ROAD SERVICES PTY LTD (IN LIQUIDATION) (ACN 609 113 037), ROADMASTER TRAFFIC MANAGEMENT PTY LTD (IN LIQUIDATION) (ACN 601 193 391) AS TRUSTEE FOR THE ROADMASTER TRAFFIC MANAGEMENT TRUST (ABN 23 708 998 744) and ROADMASTER LINE MARKING PTY LTD (IN LIQUIDATION) (ACN 163 486 431) (and others according to the attached Schedule)	Plaintiffs
v
SEMRA OFLI (and others according to the attached Schedule)	Defendants

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JUDGE:	Matthews J
WHERE HELD:	Melbourne
DATE OF HEARING:	21 December 2023
DATE OF JUDGMENT:	21 December 2023
DATE OF REASONS:	22 December 2023
CASE MAY BE CITED AS:	Re RM Road Services Pty Ltd (in liq) & Ors
MEDIUM NEUTRAL CITATION:	[2023] VSC 794

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CORPORATIONS – Corporations Act 2001 (Cth) - Section 90-15, Insolvency Practice Schedule (Corporations) - Liquidators’ application for directions in conduct of external administration – Whether liquidators permitted to take possession of property of the company despite there being registered security interests – Liquidators best placed to conduct orderly realisation of assets – Personal Property Securities Act 2009 (Cth).

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APPEARANCES:	Counsel	Solicitors
For the Plaintiffs	Ms V Bell of counsel	Mills Oakley
For the First and Second Defendants	Mr B Pogoriller, solicitor	Boris Pogoriller
No appearance by or on behalf of the Third Defendant

TABLE OF CONTENTS

Introduction........................................................................................................................................ 1

Background......................................................................................................................................... 4

The Roadmaster Companies........................................................................................................ 4

Appointment and winding up application............................................................................... 5

Attendance at Keilor Premises prior to commencement of the proceeding......................... 5

Production of security agreements and the defendants’ debts.............................................. 6

The defendants’ debts.................................................................................................................. 6

Other creditors of the Roadmaster Companies........................................................................ 7

Assets of the Roadmaster Companies........................................................................................ 8

Procedural history......................................................................................................................... 9

Relevant law...................................................................................................................................... 11

Section 90-15 of the IPS............................................................................................................... 11

The Liquidators’ submissions regarding the Disputed Matters............................................ 12

Liquidators’ submissions regarding the evidence................................................................. 13

Liquidators’ submissions regarding the orders sought and the Court’s power to make them 16

Section 90-15 of the IPS..................................................................................................... 16

AESK and Mr Khabbaz as Controllers........................................................................... 19

Discretionary reasons said by the Liquidators to favour making the orders........... 20

Submissions by Ms Ofli and AESK............................................................................................. 21

Reply submissions of the Liquidators......................................................................................... 24

Consideration.................................................................................................................................... 24

HER HONOUR:

Introduction

1. These reasons concern an application under ss 36 and 37 of the Supreme Court Act 1986 (Vic) (‘SCA’), rule 39.05 and/or 2.04 of the Supreme Court (General Civil Procedure) Rules 2015 (Vic) (‘Rules’), s 1324 of the Corporations Act 2001 (Cth) (Act), s 90-15 of the Insolvency Practice Schedule (Corporations) (‘IPS’), being Schedule 2 to the Act, and the inherent jurisdiction of this Court.