The issue is a crucial concern for the 18,000 growers who invested $1.5 billion in Timbercorp's various schemes because the liquidator, Mark Korda of KordaMentha, does not have any funds to pay land-owners. Rent was due on July 1.

If the court rules Mr Korda is personally liable, there is a strong prospect that some of the leases will be terminated - a move that could cut off the growers' access to their various forestry, almond and olive projects.

As a result, the liquidator is also expected to ask the court to consider hearing a special case to determine if, by investing in Timbercorp schemes, the growers retain a proprietary interest in the land.

The fresh manoeuvre comes as the liquidator for Timbercorp's finance division, Craig Shepard of KordaMentha, issued the first flush of writs in the Victorian Supreme Court against growers who have failed to repay loans.

About 14,000 of Timbercorp's growers are believed to have borrowed sums from the company to invest in its forestry and agricultural schemes. Mr Shepard has filed claims against 20 growers, demanding sums ranging up to $2.49 million.

Some of these are clients of the law firm Macpherson+Kelley, which yesterday said it would launch a counterclaim against Timbercorp Securities.

A Macpherson+Kelley principal, Ron Willemsen, said his clients would ask the court to set aside the claims, as the loans were invalid and unenforceable.

Mr Willemsen said his clients would argue the loans "were obtained from investors at a time when there should have been disclosure to the investors by Timbercorp of the fact that the Timbercorp group was on the verge of collapse".