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{\flominor\f31552\fbidi \froman\fcharset162\fprq2 Times New Roman Tur;}{\flominor\f31553\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}{\flominor\f31554\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}
{\flominor\f31555\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}{\flominor\f31556\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}{\fdbminor\f31558\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}
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{\fdbminor\f31566\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}{\fhiminor\f31568\fbidi \fswiss\fcharset238\fprq2 Calibri CE;}{\fhiminor\f31569\fbidi \fswiss\fcharset204\fprq2 Calibri Cyr;}
{\fhiminor\f31571\fbidi \fswiss\fcharset161\fprq2 Calibri Greek;}{\fhiminor\f31572\fbidi \fswiss\fcharset162\fprq2 Calibri Tur;}{\fhiminor\f31575\fbidi \fswiss\fcharset186\fprq2 Calibri Baltic;}
{\fhiminor\f31576\fbidi \fswiss\fcharset163\fprq2 Calibri (Vietnamese);}{\fbiminor\f31578\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}{\fbiminor\f31579\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}
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{\fbiminor\f31584\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}{\fbiminor\f31585\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}{\fbiminor\f31586\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}}
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}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf2\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 [1999] 45 FLR 220}}}\sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid7015295\sftnbj {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
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HIGH COURT OF FIJI ISLANDS}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
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\par }{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 THE OFFICIAL RECEIVER}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
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\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 [HIGH COURT, 1999 (Pathik J) 17 September]}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 

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Company Law- company in liquidation- duties and powers of Official Receiver- how far subject to control by the Court-\~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6557080 HYPERLINK "http://www.paclii.org/fj/legis/consol_act/ca107/"}
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\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 A former director of a company in liquidation was aggrieved at the Official Receiver\rquote 
s refusal to consent to the initiation of legal proceedings on behalf of the company. The High Court examined and explained the meaning and effect of winding up a bankru
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\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
re Peters, ex parte Lloyd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~(1882) 47 L.T. 64}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 

\par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 re a Debtor, ex parte the Debtor v Dodwell}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~
[1949] Ch. 236}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Burnells Pty Ltd (In Liquidation) v Walsh re Burnells Pry Ltd}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~\~\~\~\~\~\~\~\~\~\~\~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6557080 
HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=1979%20QdR%20440" \\o "View LawCiteRecord"}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf2\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 1979 Qd.R 440}}}\sectd \ltrsect
\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid7015295\sftnbj {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Re Allebart Pty. Ltd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \ai\af0 
\ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 (In Liq) and The\~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6557080 HYPERLINK "http://www.paclii.org/fj/legis/consol_act/ca107/"}}{\fldrslt {
\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\cf2\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Companies Act}}}\sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid7015295\sftnbj {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 
\i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 , Re Home Holdings}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~\~\~\~\~\~\~\~\~\~\~ Pty. Ltd (In Liq) and the\~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6557080 
HYPERLINK "http://www.paclii.org/fj/legis/consol_act/ca107/"}}{\fldrslt {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\cf2\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Companies Act}}}\sectd \ltrsect
\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid7015295\sftnbj {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 . (1971) NSW LR 24}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Re Toronto Wood & Shingle Co.\~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6557080 
HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=%281894%29%2030%20CLT%20353" \\o "View LawCiteRecord"}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf2\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 (1894) 30 Can. L.T. 353}}}
\sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid7015295\sftnbj {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 P. Howard}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~for the Plaintiffs}{\rtlch\fcs1 \af0\afs27 
\ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 L. Agbejule}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~for the Defendant}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Pathik J}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 :}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 By originating summons dated 12 November 1998 which was amended on 8 April 1999 Mohammed Sheik Khan (the first plaintiff - the \'93P1\'94
) is seeking the following orders and/or relief.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \fi-567\li1134\ri538\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin538\lin1134\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 (a)\~\~
\~\~ An order that the Defendant vary his decision and grant his consent to the First Plaintiff to institute legal action or actions for and on behalf of Second Plaintiff;}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 (b)\~\~\~\~ An order that the First Plaintiff shall be responsible for the payment of all costs if any costs are awarded against the Second Plaintiff;}{
\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 (c)\~\~\~\~ An Order that all monies recovered through any legal proceedings shall be paid to the Defendant;}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 (d)\~\~\~\~ Such further order or orders as this Honourable Court seems just and proper;}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 (e)\~\~\~\~ Costs of this application.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 The summons is supported by an affidavit from P1 who was a director and a majority shareholder in Sheik\rquote 
s Rent-a-Car Limited (the second plaintiff - P2).}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 The Official Receiver (the \'93O.R\'94) who is the defendant in this action and who has been appointed the liquidator of P2 has filed an affidavit sworn
 9 December 1998 in opposition to the summons.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Background facts}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
On 8 December 1995 the second plaintiff (P2) was wound up by High Court of Fiji at Lautoka and the O.R. was appointed the provisional liquidator and on 14 October 1998 the liquidator. On 2
3 June 1998 P1 commenced Civil Action HBC0198/98L and on 24 August 1998 O.R\rquote s consent was sought by Peter Howard & Associates, the solicitors for Pl, to enable P2 to \lquote 
institute legal actions against such parties it has on legitimate and sustainable causes of action\rquote . The O.R. declined his consent firstly on 14 September 1998 and then again on 26 October 1998.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Plaintiff\rquote s (P1\rquote s) submission}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 

\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 In the affidavit in support of the summons sworn by P1 on 11 November 1998 he stated that he is a Director and a maj
ority shareholder in P2. The second plaintiff was wound up by the Court on 8 December 1995 and the O.R was appointed the provisional liquidator.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 

\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 The P1 wanted to pursue P2\rquote s claim against certain companies. He said that although at one stage Mr Labo Agbe
jule the counsel for O.R gave his consent to proceed with the alleged claim, he reneged on this undertaking to grant the necessary directive and the O.R. disregarded the creditors\rquote  direction given at a creditors\rquote 
 meeting held in October at the O.R\rquote s office.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 As a result Pl says, inter alia, that the refusal \'93is arbitrary and defeats the creditors\rquote 
 claim against the P2 and that of the P2 to pay off its creditors and resume its normal business of rental cars\'94 (item 14 of Pl\rquote s affidavit sworn 11.11.98).}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 The P1 says in his affidavit sworn 12 January 1999, with the leave of the Court, that as a major shareholder in the P2, he has the \'93
necessary powers and the interest to bring the company (P2) out of liquidation\'94 (items (a) on p3 of P1\rquote s affidavit sworn 12.1.99)}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
The P1 submits that O.R. ought to give his consent to the continuation of the action commenced by P2 on 23 June 1998 in the Lautoka High Court against Pitstop (Fiji) Limited and Pala\rquote 
s Autoport Ltd for wrongful and/or illegal seizure of motor vehicle No. CN614. The P1 alleges (item 2(a) of P1\rquote s affidavit of 12.1.99) that \'93
(a) the National MBF Finance (Fiji) Ltd financed only one vehicle namely, CN 614 however, the Lease Agreement in error quoted CN 615. I immediately discovered the error and informed N
ational MBF Finance (Fiji) Ltd to correct same on the Lease Agreement. Despite my said directive, the error remained and the financiers maintained that they financed CN 615 and later seized and sold this vehicle.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 P1 wants the Court make an Order under s243(5) of the\~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6557080 
HYPERLINK "http://www.paclii.org/fj/legis/consol_act/ca107/"}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf2\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Companies Act}}}\sectd \ltrsect
\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid7015295\sftnbj {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 , Cap.247 (the \lquote Act\rquote ) that the Court \lquote reverse\rquote 
 the decision of the O.R. by ordering him to continue or institute proceedings against the proposed defendant or defendants.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Defendant\rquote s submission}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
Through the affidavit in opposition to the summons sworn on 9 December 1998 by the Deputy Official Receiver Mohammed Azam Khan, the O.R states that it is not within the authority of the Legal Officer Mr. Labo but the 
Official Receiver to institute proceedings and that Credit Corporation (Fiji) Ltd referred to by P1 did not give a blanket authorisation to the O.R that he must endorse his consent to the action commenced by P1 as a director of P2.}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 The O.R says that he had only exercised the power conferred on him by section 251 of the Act which provide as follows:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li567\ri538\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin538\lin567\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \'93
251. Where, in the case of a winding up, there is no committee of inspection, the court may, on theapplication of the liquidator, do any act or thing or giv
e any direction or permission which is, by this Act, authorized or required to be done or given by the committee:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li850\ri822\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin822\lin850\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Provided that,\~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
where the official receiver is the liquidator,\~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 he may do any such act or thing and give any such direction or permission without application to the court.
\'94 (emphasis mine)}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
In the performance of his duty the O.R says that he requested the directors of P2 to submit a Statement of Affairs of the Company. In September 1996 P1 presented to the O.R a document being the Company\rquote s (P2\rquote 
s) Financial Statement for the year ended 1995.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
The O.R says that he did not give his consent to litigate the civil proceedings being Action HBC 0198/98L for the reasons given in his letter of 14 September 1998: addressed to P1\rquote s solicitors Messrs. Pete
r Howard & Associates. This was further elaborated upon in the letter dated 26 October 1998 to the said solicitors wherein he again declined to give his consent.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 In the said affidavit the O.R has outlined very clearly his stand in the matter of refusal 
of consent for the reasons he has given and stated that he was acting in accordance with the provisions of the Act in regard to his duties as the liquidator.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 The O.R says that the P1 has no\~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 locus standi\~}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 in maintaining the action and that by virtue of the
 provisions of section 242 (1) of the Act the O.R as the liquidator is empowered with the sanction of the Court or of the Committee of Inspection to bring or defend any action or other legal proceedings in the name and on behalf of the Company and that O.
R is empowered by the said section 251 to act without making application to the Court.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 The O.R says (in Mr. Khan\rquote s affidavit of 9.12.98 at 5-6) that \'93
as liquidator of the Company he is obliged to exercise due diligence in the exercise of his powers and as
 the case stands the proceeding already commenced by the Plaintiff appear to be one which may unfairly prejudice the general body of creditors and further increase the cost of liquidation being a proceeding essentially compensation for loss of use of a ca
r in company business for a period beginning from the first month after the company went into liquidation\'94.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Issue for determination}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Whether upon winding up of P2 the O.R should be ordered by the Court to give his consent to commence or continue legal ac
tion or actions for and on behalf of P2 on the facts and circumstances of case.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 The Law}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Winding up and its effect}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 The application before the Court has to be considered in the light of the law on the subject of winding up and its effect on the 
liquidator in the performance of his duties. I shall therefore deal with the applicable law.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
Upon the making up of the winding up order there is transferred to the liquidator all the powers of the directors which it can reasonably have been intended to v
est in the liquidator and the powers of the directors come to an end with the appointment of a permanent liquidator as is the case here. After this the directors do not have any power, inter alia, to conduct proceedings on behalf of the company. In a comp
u
lsory winding up, as in this case, there is no winding up until the Court makes an Order, but the winding up is deemed to have commenced at the time of presentation of the petition. The relevance in most cases is the occurrence of the winding up itself an
d this, inter alia, has an effect on the right to commence or continue actions or proceedings against the company. The control of the company\rquote s affairs is upon a winding up taken from the directors and vested in the liquidator.}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 As is clear from the provis
ions in the Act, in a compulsory winding up the decisions the liquidator makes from time to time are in effect under the authority of the Court. He is expected to discharge his duties impartially and properly.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 In a winding up by the Court, the liquidator is an officer of the Court, and as such he has}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 
\b\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
public responsibilities to investigate past activities with the Company and in appropriate cases to initiate such further proceedings, civil or criminal, as the circumstances may dictate (}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Re Allebart Pty. Ltd (In Liq) and The\~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6557080 HYPERLINK "http://www.paclii.org/fj/legis/consol_act/ca107/"}}{\fldrslt 
{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf2\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Companies Act}}}\sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid7015295\sftnbj {\rtlch\fcs1 \af0 \ltrch\fcs0 
\ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 , Re Home Holdings Pry. Ltd (In Liq) and the\~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6557080 HYPERLINK "http://www.paclii.org/fj/legis/consol_act/ca107/"}
}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf2\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Companies Act}}}\sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid7015295\sftnbj {\rtlch\fcs1 \af0 \ltrch\fcs0 
\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 , Street J. (1971)NSW LR 24). He is empowered under the Act, as one of his powers to commence or to continue actions in Court.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
In so far as it is relevant to this case, one effect of the winding up is that where the company is insolvent, all proceedings against the company are automatically sta
yed by the winding up as is the power of the creditors to enforce their remedies against the company.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Consideration of the issue}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 I have for my consideration for the determination of the issue in this case various affidavits and written submissions filed in this action.}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
It is to be noted that by letter dated 26 October 1998 and addressed to Messrs. Peter Howard & Associates, Solicitors for P1, the O.R declined to give his consent to P2 to institute \'93
legal actions against such parties it has a legitimate and sustainable causes of action. The action being Civil Action No. HBCO198/98L had already commenced claiming i
nter alia for an order that the defendants in that action (Pitstop (Fiji) Limited and Pala\rquote 
 s Autoport Ltd) to pay the plaintiff compensation at the rate of $165.00 per day from the date of seizure being 3rd January 1996 to date of final settlement of this claim\'94.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
The O.R. further stated that the vehicle in question the subject matter of the action was held by P2 ( in liquidation) as a lessee of National MBf Finance (Fiji) Ltd which is claiming ownership thereof. The O.R. said that \'93it appears that the sa
id vehicle may not be the property in respect of which the Official Receiver can exercise control. It belonged to the National MBf (Fiji) Ltd; the company reserves its right as owner. In addition the claim for lost profit may have been vitiated by the win
ding-up order\'94.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
The Company (P2) is in liquidation and the Official Receiver is exercising his powers as the liquidator under the powers vested in him under the said s251 of the Act. The O.R received a sealed copy of the winding up order after May 1997. N
otice of winding up was published on 22 August 1998 in the Fiji Times newspaper.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
In law, it is clear that, the plaintiff as a former director of the Company cannot maintain the said action in that his powers as a director in relation to the assets and bu
siness of P2 ceased with the winding up Order against it and whatever powers he may still have does not include power to commence proceedings. The liquidator in this case who is the O.R, would be the proper person to continue or commence proceedings, unde
r the powers vested in him under the Act.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 By virtue of the provisions of section 242(1) of the Act the liquidator is empowered, \lquote 
with the sanction either of the Court or of the Committee of Inspection (a) to bring or defend any action or other legal proceedings in the name and on behalf of the Company\rquote .}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 The first plaintiff is by his Originating Summons seeking, inter alia, an Order from the Court that the O.R \lquote 
vary his decision and grant his consent to the first Plaintiff to institute legal action or actions for on behalf of second Plaintiff\rquote  (prayer (a) in Summons).}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 The section under which this application is made is s243(5) which provides:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li567\ri538\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin538\lin567\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \'93
(5) If any person is aggrieved by any act or decision of the liquidator, that person may apply to the court, and the court may confirm, reverse or,modify the act or decision complained of, and make such order in the premises as it thinks just\'94.}{
\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 A liquidator must decide himself what steps should be taken in the winding up and should not yield up his exclusive 
independent control in the decision-making processes and administration of a winding up.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
In this case the liquidator has decided not to grant his consent for the reasons he has given and which are clearly set out in the said letters referred to hereabove by me. In considering P1\rquote 
s application to him he was acting well within his powers. Matters relating to the \lquote appointment\rquote , of a liquidator, \lquote powers of liquidator\rquote  and \lquote exercise and control of liquidator\rquote s powers\rquote 
 are contained in sections 236, 242 and 243 respectively of the Act.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
Under s236 of the Act the Court appointed the Official receiver as provisional liquidator. He was later confirmed the liquidator at a creditors meeting. The O.R. is not oblivious of the provisions of s243 which controls liquidator\rquote s powers.}{
\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
I think it is important that I set out the provisions of the said s243 hereunder so that P1 becomes aware of the ambit within which the liquidator acts coupled with his powers under s242(1)(a). Section 243 provides:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li567\ri538\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin538\lin567\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \'93243. - (1) Subject to 
the provisions of this Act, the liquidator of a company which is being wound up by the court shall, in the administration of the assets of the company and in the distribution thereof among its creditors, have regard to any directions that may be given by 
r
esolution of the creditors or contributories at any general meeting or by the committee of inspection, and any directions given by the creditors or contributories at any general meeting shall, in case of conflict, be deemed to override any directions give
n by the committee of inspection.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
(2) The liquidator may summon a general meetings of the creditors or contributories for the purpose of ascertaining their wishes, and it shall be his duty to summon meetings at such times as the creditors or contributorie
s, by resolution, either at the meeting appointing the liquidator or otherwise, may direct, or whenever requested in writing to do so by one-tenth in value of the creditors or contributories as the case may be.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 (3) The liquidator may apply to the court, in manner prescribed, for directions in relation to any particular matter arising under the winding up.}{
\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 (4) Subject to the provisions of this Act, the liquidator shall use his own discretion in the management of the estate and its distribution among the cr
editors.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
(5) If any person is aggrieved by any act or-decision of the liquidator, that person may apply to the court, and the court may confirm, reverse or modify the act or decision complained of, and make such order in the premises as it thinks just.\'94}{
\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
It is within the confines of these provisions and as directed by resolution of the creditors or contributories or by the committee of inspection and in the exercise of his own discretion in the matter of instituting Court proceedings and continuing with 
Court actions that the O.R. acts.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Effect of winding up on actions and proceedings}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 In so far as it is material to this case upon the winding up of P2 all proceedings in Court are stayed under s229 of the Act which provides that \'93
no action or proceeding shall be proceeded with or commenced against the company except by leave of the court and subject to such terms as the court may impose\'94
 The purpose behind this is to avoid the inconvenience and expense of litigation and to oblige all claimant to submit to the procedural scheme under the Act. This has been succinctly put by a Canadian judge in\~}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Re Toronto Wood & Shingle Co}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~(1894) 30 Can.\~L.T 353, 356 thus:}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li567\ri538\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin538\lin567\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \'93It must be kept in view that the intention of the Winding Up Act and of all legislation respecting i
nsolvency is to get within the control of the court all the estate of the insolvent company, to settle there all the claims of debt, privilege, mortgage, lien, or right of property upon, in or to any effects or property of such company in the simplest and
 
least expensive way, and to distribute its assets among its creditors in the most expeditious manner possible and not to have the proceedings of the winding up court or the distribution of the assets delayed or impeded by or dependent upon outside or expe
nsive litigation in other courts.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
Where leave is sought to commence or continue proceedings by a company in liquidation as in this case there are two determining factors; one is the nature of the plaintiff\rquote s claim and the other is the balance of convenie
nce and the demands of justice.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
The O.R. (the liquidator) in the case before me considered the issue before him and decided to refuse consent to proceed with the action for the reasons he had given based on the advice he received. I find that he has exer
cised his powers properly and in accordance with the law and in accordance with the following statement from\~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Lindley on Companies}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~(6th Ed. Vol. 2 p.908) in determining whether he should proceed:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 

\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li567\ri538\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin538\lin567\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \'93
The only material question to be considered is whether 
there are any circumstances which render it necessary that the action should be continued, or whether the claim of the plaintiff is not one which can be as easily dealt with in the winding up as in any other way.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
When the liquidator exercises his powers under the relevant provisions of the Act \'93... the Court will not interfere unless the trustee is doing that which is so utterly unreasonable and absurd that no reasonable man would so act\'94
 (Sir George Jessel in\~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 re Peters, ex parte Lloyd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~
(1882) 47 L.T. 64). Sir George went on to say speaking of the trustee in bankruptcy: \lquote He is certainly not doing anything of the kind in the present case and, in my opinion, the appeal ought to fail\rquote }{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 I adopt the same statements in this case.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
I also consider that the following passage from the judgment of Harman J in\~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 re a Debtor, ex parte the Debtor v Dodwell}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~[1949] Ch. 236 is apt after stating that \'93I need not, I think, attempt to define what the circumstances are\'94 meaning the circumstances in which the court will interfe
re at the instance of a bankrupt:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li567\ri538\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin538\lin567\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \'93
They cannot, I think (in the absence of fraud), justify interference in the day-to-day\~administration of the estate, nor entitle the bankrupt to question the exercise by the trustee in good faith of his discretion, nor 
to hold him accountable for an error of judgment.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par \~
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
Administration in bankruptcy would be impossible if the trustee must answer at every step to the bankrupt for the exercise of his powers and discretions in the management and realisation of the property.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 In this regard Dunn J in\~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
Burnells Pty Ltd (In Liquidation) v Walsh re Burnells Pry Ltd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~(Supreme Court, Brisbane\~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid6557080 HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=1979%20QdR%20440" \\o "View LawCiteRecord"}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf2\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 1979 Qd.R 440}}}
\sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid7015295\sftnbj {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~at 442) has summed up the p
osition very well, which I adopt, in the following words, after referring to the above passage in\~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Burnells}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~(at p.442):}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li567\ri538\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin538\lin567\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \'93
Similarly, in my opinion, a trustee or liquidator who exercises his powers in good faith, having taken proper advice, is not answerabl
e to a creditor or a contributory even if the creditor or contributory is disposed to challenge the judgment of the liquidator, ...\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Conclusion}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Having considered the affidavit evidence and the useful submissions from both sides and bearing in mind the 
reasons advanced by the O.R for not consenting and the law on the subject, I am not persuaded in the present case that the decision made by the O.R. is not entirely a regular and proper step for him to make within the legitimate scope of his discretion in
 
conducting the winding up. However, at a later date while in the process of administering, the liquidator decides to accede to the application such as the one before me he can draw upon financial assistance from P1 as offered by him but in doing so it is 
i
ncumbent upon him to ensure that he does not place in jeopardy his independence in the discharge of his duties. It is not improper to accept the offer of costs and indemnity from the director P1 for there is support for this proposition in the following p
assage from the judgment of Street J in\~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 Allebart Pty. Ltd}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 . (supra) at p.28:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li567\ri538\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin538\lin567\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \'93
Where a company is being wound up and it has no assets, or insufficient assets, to enable the due processes of the liquidator to be carried through, a creditor is to be encourage
d, rather than criticized, in making funds available to the liquidator.. Nor need a liquidator be diffident in accepting funds or indemnities from creditors so as to enable a winding up to proceed. Moreover, I see no reason to criticize on the grounds of 
p
ropriety the arrangement under which a creditor provides money or indemnity to cover the expenses of a specific step in the winding up, such as the bringing of named proceedings or the carrying out of named examinations. Arrangements such as these are com
monplace, and, if anything, they are to be encouraged, as very frequently some such arrangement enables the liquidator to carry out his duties more thoroughly or comprehensively than would otherwise be the case (cf. Companies Act 1961, s.292(10)).\'94}{
\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9120530 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 
For these reasons I dismiss the summons with a direction that the Official Receiver give further consideration if it becomes necessary at a later state to the possibility of instituting proceedings against companies or persons against whom there is a caus
e of action. I award costs of this application against the first plaintiff which I fix at $200 to be paid within 28 days.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid9120530\charrsid9120530 (Judgment for the Defendant.)}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid9120530\charrsid9120530 
\par }\pard \ltrpar\ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1972231 
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