Structum Pty Ltd v CWCN Pty Ltd

In the case of Structum Pty Ltd v CWCN Pty Ltd, the dispute between the parties centred on the remuneration sought by the liquidators for future examination of trust assets, amidst competing claims from creditors. The matter was heard in the Supreme Court of New South Wales. The liquidators of Structum Pty Ltd sought direction from the court regarding their remuneration, which was to be paid from trust assets, especially in light of outstanding issues concerning the priority of competing creditor claims.

The court was required to determine whether it should provide an indication of the likelihood of the liquidators being indemnified from trust assets in the future. This depended on the proposed questions for examination, which had yet to be conducted. The liquidators argued that an advance indication would facilitate the examination process and secure their remuneration, while the creditors contended that such a determination should not be made until the examination was complete and the priority of claims could be assessed accurately.

The court considered that making an indication of indemnity from trust assets based on proposed questions for examination, which had yet to be conducted, was premature. The court held that the liquidators' remuneration should be contingent on the outcome of the examination and the final determination of the priority of creditor claims. The court found that it was inappropriate to make an advance ruling on the likelihood of indemnity, as this would not provide a fair and accurate basis for resolving the competing claims. The court therefore declined to provide the liquidators with the requested direction.

As a result, the court dismissed the liquidators' application for direction regarding their future remuneration from trust assets. The liquidators were required to await the completion of the examination and the final determination of the priority of creditor claims before seeking remuneration. The court's decision emphasised the importance of allowing the examination process to unfold and the priority of claims to be accurately assessed before making any determinations regarding remuneration.