NSW Liquor and Gaming and Wind-ups

Justice Black roasted the NSW Liquor and Gaming Authority in his 2 January 2018 judgement.

“It would be a most unfortunate state of affairs if a statute provides that [a voluntary administration cannot occur], …, without the approval of the Authority, but the Authority will not promptly grant that approval.”

He goes on: “it is hoped that the Authority’s position is not … that which was communicated to the Court.”

The Authority in question had received an application to appoint VA’s (s41 Registered Clubs Act) by the Belmont Sportsmans Club before mid-December, but had informed the club that the matter would not be dealt with until February.

Too bad if the directors were concerned with insolvent trading implications.

In dismissing the clubs application to appoint VA’s through the court, Black J held:

– the court had no such authority (s41) (only the Authority could approve: Correa v Whittingham [2013] NSWCA 263). This runs counter to Re Coffs Harbour CRSC [2015] NSWSC 1088; and

– the court could appoint Receivers or provisional liquidators.

The end result: Black J held over the case until the Authority gave the approval.

If you face similar situations there are a number of options available. Get in touch with an ARITA member for assistance.


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