Liquidator entitled to sell limited partnership winery

In Jacobs as liquidator of Necessary Holdings Pty Ltd (in liq) v Lenton Brae Limited Partnership (a firm) [2021] WASC 10, the Supreme Court today confirmed the entitlement of liquidator Bob Jacobs to sell the business of Wilyabrup winery Lenton Brae and affirmed his right to remain the liquidator.

The company in liquidation is the general partner of a limited partner incorporated under the Limited Partnerships Act 2016 (WA).  The liquidator sought directions under section 90-15 of the Insolvency Practice Schedule (Corporations) 2016 confirming his position, and one of the limited partners objected to his position.  The case involved some complicated questions about the entitlements of a general partner in liquidation to access the assets of a limited partnership registered under WA legislation.

Ultimately, Justice Hill found that the liquidator of the general partner did have the right to realise partnership assets in exercise of the company’s contractual or statutory right of indemnity.

Blackwall’s Chris Pearce and Monica Hamid both appeared counsel for the liquidator at the hearing.

You can read more about the background to the application here.