Where orders made to discontinue winding up application
Quick Take
1Where a winding up application is discontinued, the discontinuing party will ordinarily bear costs unless there is good reason otherwise; here, the defendant's failure to rebut the presumption of insolvency with adequate and timely evidence constituted such a reason.
2Unaudited accounts, unverified claims of ownership or valuation, and bald assertions of solvency arising from a general review of accounts are not ordinarily probative of solvency sufficient to discharge the onus under s 459C(2)(a) of the Corporations Act 2001 (Cth).
3On the facts, the plaintiff acted reasonably in commencing the application and the defendant's delay in providing financial evidence justified a costs order in the plaintiff's favour despite discontinuance.
