(1) The District Court
may, on an application by the strata company or by a proprietor or a
registered mortgagee of a lot within a scheme, make an order terminating the
(2) An insurer who has
effected insurance on the building (other than a building on a lot in a
survey-strata scheme), or any part of the building, against damage to or
destruction of the building has the right to appear, in person or by counsel,
on an application to the District Court under this section.
(3) An order made
under this section shall include directions for or with respect to the
following matters —
sale or disposition of any property of the strata company; and
discharge of the liabilities of the strata company; and
persons liable to contribute moneys required for the discharge of the
liabilities of the strata company and the proportionate liability of each such
distribution of the assets of the strata company and the proportionate
entitlement of each person under that distribution; and
administration, powers, authorities, duties and functions of the strata
voting power at meetings of the strata company of persons referred to in
paragraph (c) or (d); and
matter in respect of which it is, in the opinion of the District Court, just
and equitable, in the circumstances of the case, to make provision in the
winding up of the strata company (including the appointment, powers,
authorities, duties and functions of any person to carry out the winding up).
(4) An order made
under this section may include a direction that money received by the strata
company from an insurer of the building shall be paid directly to a mortgagee
of a lot.
(5) The District Court
may from time to time amend any order made under this section.
(6) Where the District
Court is of the opinion that an order should not be made under this
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 28; and
where it makes such a direction —
the application the subject of the direction shall be
deemed to be an application made under section 28 by a person entitled to
make the application; and
the applicant under subsection (1), as well as any
other person entitled to appear and be heard under section 28, is
entitled to appear and be heard on the hearing of the application.
(7) On any application
under this section, the District Court may make such order for the payment of
costs as it thinks fit.
(8) Upon the making of
an order under this section terminating a scheme, the strata company shall
immediately lodge a copy of the order with the Registrar of Titles.
(9) Upon receipt of
the copy of the order terminating a scheme, the Registrar of Titles shall make
an entry on the relevant registered strata/survey-strata plan and, where
applicable, on the relevant certificates of title in the manner prescribed.
(10) On the making of
an entry under subsection (9) —
the case of a strata scheme, subsections (2) to (5) of section 30
the case of common property in a survey-strata scheme, subsections (4)
and (5) of section 30A apply,
as if the scheme had
been terminated by unanimous resolution under section 30(1) or 30A(1) as
the case may require.
[Section 31 amended by No. 58 of 1995
s. 35, 93(1) and 96.]
[Heading inserted by No. 61 of 1996