A creditor of a company moved the Court to appoint of a temporary liquidator to the company and following arrest of the sole director and shareholder of the company under suspicion of fraud of the tax authorities. The creditor stipulated that he believes there is apprehension of unilateral actions in the company property against its creditors.
The Court held that an appointment of a temporary liquidator prior to receiving the motion to liquidate will be upheld only when it was proven that there is an urgent need for such appointment to avoid irreparable damage until a decision on the liquidation motion. The Court rejected the motion and clarified that Courts will be hesitant to appoint a temporary liquidator, especially with active companies.