FAI General Insurance Ltd

[2002] NSWSC 262

Supreme Court of NSW

Built by Barristers,
For Australian Law.

1. CORPORATIONS - winding up - leave to proceed against company in liquidation - exercise of special leave to appeal to High Court - no other avenue available to vindicate applicants' supposed rights - other factors also favour grant of leave to proceed
1. Acts Cited:
1. Corporations Act 2001 (Cth)

Where a claimant against a company in liquidation has no provable debt or claim capable of being pursued through the proof of debt process (because existing court orders deny any such claim), that constitutes good reason justifying leave to proceed under s 471B.
The grant of special leave to appeal by the High Court demonstrates sufficient plausibility of the claim to negate any concern that the proceedings are of mere nuisance value or devoid of substance.
The existence of reinsurance that may mitigate the impact of any judgment on the liquidation estate is a positive factor favouring the grant of leave to proceed.

Citation[2002] NSWSC 262

CourtNSWSC

JurisdictionNew South Wales

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