LEGAL PRINCIPLE: COMPANY LAW — Liquidation — Ex Parte Application for Extension of Time — Whether Requires Notice to Parties
PRINCIPLE STATEMENT
An application by a provisional liquidator for extension of time to complete his assignment does not affect the civil rights and obligations of any party and may properly be made ex parte, as only those against whom an order is sought need to be served.
RATIO DECIDENDI (SOURCE)
Per Ogundare, JSC, in Provisional Liquidator of Tapp Industries Limited v. Tapp Industries Limited (1995) NLC-2281991(SC) at pp. 24–25; Paras. D–B.
"An application by a provisional liquidator for extension of time to complete his assignment cannot be said to be an order sought against any party. Such an application does not affect the civil rights and obligations of any party to the winding-up proceedings. Under Rule 4 of the Companies (Winding Up) Rules, 1983, only those against whom an order is sought need to be served with notice of the motion. A prayer for extension of time is not an order sought against any party, and therefore may properly be made ex parte."
EXPLANATION / SCOPE
An extension of time for a provisional liquidator is not an order against any party. It does not affect civil rights. Such applications may be made ex parte. The principle applies to winding-up proceedings. The court has discretion to grant extensions. The rule promotes efficiency in liquidation. The liquidator must show good cause. The court will not require notice where no party’s rights are affected. The principle is based on the rules of court.