Sanderson as liquidator of Sakr Nominees Pty Ltd (in liq) v Sakr

The applicant, the liquidator of Sakr Nominees Pty Ltd (in liq), sought leave to appeal a decision concerning the remuneration claimed by the liquidator. The dispute centred on whether the remuneration approved by the court below was excessive and whether the court had erred in its assessment of the liquidator's claim. The appeal was heard by the Court of Appeal of New South Wales.

The primary legal issues before the Court of Appeal were whether the judge below had erred in failing to consider the reasonableness of the work performed by the liquidator, the hourly rate charged, and the time taken to complete the tasks. Further, the court was asked to determine if there was an error in applying considerations of proportionality to the remuneration, and whether the judge had incorrectly applied ad valorem rates of remuneration, particularly in light of the creditors' prior approval of remuneration based on time costing.

The Court of Appeal found that the judge below had indeed erred in his assessment of the liquidator's remuneration. The court held that the judge had failed to adequately consider the reasonableness of the work performed, the hourly rates, and the time expended by the liquidator. Furthermore, the court determined that the judge had misapplied the principles of proportionality and had not given sufficient weight to the fact that the creditors had approved the liquidator's remuneration on a time-costing basis.

Consequently, the Court of Appeal granted the applicant leave to appeal, directed the filing of a formal Notice of Appeal, allowed the appeal, and remitted the application for remuneration to a judge of the Equity Division of the Court for a rehearing.