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ARTICLE · 14 DECEMBER 2013

The Willmott decision on leases and liquidators - what comes next?

DibbsBarker
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As the High Court has said they can, the liquidators' next step may be to formally give notice disclaiming the leases.

AustraliaReal Estate and Construction
Justin Kang
Justin Kang
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Services: Commercial, Dispute Resolution & Litigation, Financial Services, Property & Projects
Industry Focus: Financial Services, Property

It comes as no surprise that only 48 hours after being handed down, there has already been much said about the High Court's far-reaching decision in Willmott Growers Group Inc v Willmott Forests Limited (Receivers and Managers appointed) (In Liquidation) (Willmott).

Yes, the High Court has spoken and confirmed that:

  1. A liquidator's power (under section 568(1) of the Corporations Act) to disclaim a lease of land applies not only where the liquidator's company is the tenant, but also where the company in liquidation is the landlord.

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