In Saker, in the matter of Great Southern Managers Australia Ltd (Receivers and Managers Appointed) (in liquidation), the plaintiffs were the liquidators of Great Southern Managers of Australia Limited (GSMAL).
GSMAL owned a pine plantation under a managed investment scheme. The pine plantation was damaged by a fire. GSMAL was indemnified by its insurer for the loss caused by the fire. GSMAL distributed those funds to investors who had suffered a direct loss as a result of the fire. However, under the constitution of the investment scheme, GSMAL was required to distribute the insurance proceeds to all investors, not just those investors who had suffered a direct loss. As a result, GSMAL had to contribute approximately AUS$190,000 to the scheme to cover payments to the remaining investors.
The liquidators sought a determination as to whether GSMAL had a right to retain money from the scheme to cover the amounts it had contributed from its own funds. The Federal Court of Australia held that, although the distribution was contrary to the scheme's constitution, the mistake was not unreasonable or dishonest. As a result, it would be inequitable to restrain GSMAL from being reimbursed or indemnified for the payments it made into the scheme's account from its own funds.
See Court decision here.