New South Wales Consolidated Acts

STRATA SCHEMES (FREEHOLD DEVELOPMENT) ACT 1973 - SECT 51

51 Termination of strata scheme

(1) An application to the Supreme Court for an order under subsection (4) may be made by:

(a) any proprietor of a lot the subject of the strata scheme concerned,

(a1) where any such lot is subject to a mortgage or covenant charge-the mortgagee or covenant chargee, or

(b) the body corporate.

(1A) An application for an order under subsection (4) may be made by an authority having the benefit of a positive covenant only when the authority applies under section 88I of the Conveyancing Act 1919 for an order that the land the subject of the strata scheme concerned be transferred to the authority.

(2) Notice of an application under subsection (1) shall be served, in accordance with the rules of court, on:

(a) every person referred to in subsection (1), other than the applicant,

(b) the local council,

(c) the Registrar-General, and

(d) such other persons (including creditors of the body corporate) as the Supreme Court may direct.

(3) The applicant and any person referred to in subsection (2) (whether or not he has been served with a notice of the application) shall be entitled to appear and be heard on the hearing of the application.

(4) The Supreme Court may, on an application made under subsection (1), make an order terminating the strata scheme concerned.

(5) An order made under subsection (4) shall take effect:

(a) except as provided in paragraph (b), on such day as may be specified in the order, or

(b) where it is made pursuant to an application made under section 32 which, under section 32 (7) or under sections 32 (7) and 50 (8), is treated as an application for an order under this section, pursuant to an application under subsection (1) in relation to a proposed resumption of all the lots and all the common property the subject of a strata scheme or pursuant to an application authorised by section 35, on the day on which the resumption referred to in the order takes effect.

(6) An order made under subsection (4) shall include directions for or with respect to the following matters:

(a) the sale or disposition of any property of the body corporate,

(b) the discharge of the liabilities of the body corporate,

(b1) the termination of any development scheme that relates to the parcel and the cancellation of the strata development contract concerned,

(b2) the termination or amendment of any strata management statement that relates to the parcel or the amendment of any other strata management statement that relates to the building concerned,

(c) the persons liable to contribute moneys required for the discharge of the liabilities of the body corporate and the proportionate liability of each such person,

(d) the distribution of the assets of the body corporate and the proportionate entitlement of each person under that distribution,

(e) the administration, powers, authorities, duties and functions of the body corporate,

(f) the voting power at meetings of the body corporate of persons referred to in paragraph (c) or (d),

(g) any matter in respect of which it is, in the opinion of the Supreme Court, just and equitable, in the circumstances of the case, to make provision in the order, and

(h) the winding up of the body corporate (including the appointment, powers, authorities, duties and functions of any person to carry out the winding up).

(7) Upon an order under this section taking effect:

(a) the estate or interest of the former proprietors in that part of the former parcel which consisted of common property vested in the body corporate as agent for the former proprietors vests in the body corporate as principal, subject only to any estate or interest recorded in the folio of the Register, or on any registered lease or registered sub-lease, evidencing the estate or interest of the body corporate in that common property or in the relevant folio of the Register created under section 22 (1),

(b) the estates or interests of every person in that part of the former parcel which did not consist of common property vest in the body corporate as principal, subject only to any estate or interest recorded in:

(i) the folio of the Register evidencing the estate or interest of the body corporate in the common property comprised in that former parcel, or

(ii) the relevant folio of the Register created under section 22 (1),

to the extent that the estate or interest so recorded was capable of affecting any former lot,

(c) the persons who, immediately the order took effect, were proprietors of lots the subject of the strata scheme concerned cease to be proprietors of lots the subject of that scheme, and

(d) the persons whose estates or interests are divested by paragraph (b) have instead such rights and liabilities as are conferred or imposed upon them by the order.

(8) The provisions of an order made under this section shall have effect notwithstanding any provision of this Act, other than this section.

(9) An order made under subsection (4) shall have effect according to its tenor.

(10) Where the Supreme Court is of the opinion that an order should not be made under subsection (4):

(a) it may, upon application made by any person entitled to appear and be heard on the hearing of the application made under subsection (1) or of its own motion, direct that the application be treated as an application for an order under section 50, and

(b) where it makes such a direction:

(i) the application the subject of the direction shall be deemed to be an application made under section 50 by a person entitled to make the application, and

(ii) the applicant under subsection (1), as well as any other person entitled to appear and be heard under section 50, is entitled to appear and be heard on the hearing of the application.

(11) The costs of any proceedings under this section:

(a) pursuant to an application made under section 32 which, under section 32 (7) or under sections 32 (7) and 50 (8), is treated as an application for an order under this section, or

(b) pursuant to an application under subsection (1) in relation to a proposed resumption of all the lots and all the common property the subject of a strata scheme,

shall be payable by the resuming authority, unless the Supreme Court otherwise orders.

(12) The Supreme Court may, from time to time, vary any order made under subsection (4) on the application of any person who was entitled to appear and be heard on the hearing of the application for that order.