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Liquidation estate receivables allow recovery of unpaid business-purchase consideration from the purchaser and controlling directors who controlled the business.
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Section 60(5) jurisdiction extends to a Liquidator's recovery of unpaid business-purchase consideration where the amount is a receivable of the liquidation estate and its recovery directly augments assets available to creditors. A contractual provision envisaging payment from income generated by the acquired business governs the payment mechanism but does not extinguish the purchaser's primary payment obligation. Controlling directors who acquired and exercised effective managerial, financial and operational control through the purchaser-company cannot rely on privity or separate corporate personality to avoid liability arising from their own acts. Recovery, with interest, was confined to the purchaser-company and the three controlling directors against whom relief was sought.
Section 60(5) jurisdiction extends to a Liquidator's recovery of unpaid business-purchase consideration where the amount is a receivable of the liquidation estate and its recovery directly augments assets available to creditors. A contractual provision envisaging payment from income generated by the acquired business governs the payment mechanism but does not extinguish the purchaser's primary payment obligation. Controlling directors who acquired and exercised effective managerial, financial and operational control through the purchaser-company cannot rely on privity or separate corporate personality to avoid liability arising from their own acts. Recovery, with interest, was confined to the purchaser-company and the three controlling directors against whom relief was sought.
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