A petition to force the company sacked by Government from the new Berkeley Institute site to go into compulsory liquidation yesterday failed in the Supreme Court.

Puisne Judge Geoffrey Bell dismissed the application to wind up Pro-Active Management made by lawyer Michael Smith of Smith & Co. law firm.

Pro-Active's legal adviser Julian Hall told The Royal Gazette afterwards: "The matter was resolved two days ago. I can't discuss how or in what way."

He said that though he was not present in court he understood that Smith & Co. had not presented any evidence, effectively withdrawing the petition.

Asked if that was because Pro-Active had paid an outstanding debt, he replied: "There are all kinds of possibilities.

Maybe they didn't owe them money in the first place and maybe that was demonstrated."

Pro-Active was kicked off the Berkeley project in 2004 and has since been involved in a protracted legal battle over the sacking with Government.

The company was awarded the $70-million Berkeley contract in 2001 but after repeated delays and a spiralling budget, was fired in August 2004. The firm sued Government for wrongful termination and the latter countersued.

Arbitration proceedings to resolve the dispute are understood to be ongoing though a confidentiality clause prevents either party from discussing the details publicly.