Case Reports

Summaries of cases that are topical and of relevance to our members.

 

 Case: Arrest warrants following failure to attend public examinations (26/02/2024) 
 Case: Is it just? Is it equitable? Appointment of provisional liquidators (21/02/2024) 
 Case: Unreasonable director-related transaction – how far is s 588FDA’s reach? (5/02/2024) 
 Case: Definition of insolvency event (22/01/2024) 
 Case: Recovery of superannuation contributions as transactions to defeat creditors (17/01/2024) 
 Case: Update to FEG appeals on s 561 issues (12/12/2023) 
 Case: Court confirms proper procedure to commence insolvent trading proceedings (5/12/2023) 
 Case: Costs orders against trustee in bankruptcy (27/11/2023) 
 Case: Dishonesty offences and automatic disqualification (27/11/2023) 
 Case: Avoiding insolvency - Judicial advice to a superannuation trustee (21/11/2023) 
 Case: Claiming penalty privilege in response to a s 596B summons to produce documents (30/10/2023) 
 Case: The Federal Court confirms that an EFT transaction constitutes a “payment of money” (24/10/2023) 
 Case: Meaning of ‘property of bankrupt’ and ‘property divisible amongst creditors of the bankrupt' (16/10/2023) 
 Case: Do consensual payments into Court give rise to a registrable security interest? (25/09/2023) 
 Case: The perils of filing an application to set aside a bankruptcy notice on the last day (18/09/2023) 
 Case: Relief from liability granted to power station administrators for costs of rebuild (12/09/2023) 
 Case: Federal Court provides much needed guidance on ability to prove of arbitral awards under DOCA (5/09/2023) 
 Case: a winding-up application is not the time to run arguments against the statutory demand (28/08/2023) 
 Case: Terminating DOCAs for misleading information in and omissions from creditor reports (21/08/2023) 
 Case: Variation of Small Business Restructuring Plan approved by the Court (17/08/2023) 
 Case: When can you terminate a deed of company arrangement? (14/08/2023) 
 Case: DOCAs cannot be used to abuse the objectives of Pt 5.3A of the Corporations Act (14/08/2023) 
 Case: Guidance on marshalling where creditors hold securities of different priority (9/08/2023) 
 Case: Taking care of business – asset sales prior to the first meeting of creditors (9/08/2023) 
 Case: Relief under ss 139D(2) and 139E(2) of the Bankruptcy Act (25/07/2023) 
 Case: Court finds that AAT cannot set aside IG’s decision not to review income assessment (24/07/2023) 
 Case: Use of s 81 examination transcripts in proceedings claiming a dishonest and fraudulent design (19/07/2023) 
 Case: Court clarifies that relief not required for PPSA interests granted after appointment (18/07/2023) 
 Case: Court clarifies the circumstances in which R&D tax refunds are not circulating assets (10/07/2023) 
 Case: Use of a holding DOCA to avoid liquidation provision of SOP Act is not an improper purpose (5/07/2023) 
 Case: Step-in rights and power of attorney are s 12 security interests under the PPSA (22/06/2023) 
 Case: Determining insolvency based on future debts and a company officer’s personal liability (14/06/2023) 
 Case: CA s 561 has no application if secured debt fully paid out of non-circulating assets (24/04/2023) 
 Case: Court grants 12-month extension of convening period to facilitate trading (3/04/2023) 
 Case: High Court affirms that a voidable transaction cannot be set-off against pre-liquidation debt (6/03/2023) 
 Case: The High Court rules a line through the 'peak indebtedness rule' (28/02/2023) 
 Case: Paying remuneration and costs from trust assets: guidance for liquidators (31/01/2023) 
 Case: Adjudicating proofs of debt in assetless liquidations and cost implications (12/12/2022) 
 Case: To injunct, or not to injunct? That is the question ... (1/12/2022) 
 Case: Remuneration Determinations - Liquidators' Success Fee (28/11/2022) 
 Case: Practical guidance for receivers when exercising their power of sale (21/10/2022) 
 Case: Is a bankrupt released from a judgement debt where the original debt was incurred by fraud? (12/10/2022) 
 Case: Claim under D&O policy defeated where director's company benefited from director's breach (26/09/2022) 
 Case: SOPA and insolvency intersect again (20/09/2022) 
 Case: Reasonable to pursue an unreasonable director-related transaction in a solvent liquidation (7/09/2022) 
 Case: Public examinations - liquidators' right to commercially sensitive information & documents (15/08/2022) 
 Case: When an objection is objectionable (14/07/2022) 
 Case: Objecting to the decision to discharge of Salim Mehajer - Administrative review (4/07/2022) 
 Case: Trustee successfully recovers property (27/06/2022) 
 Case: Court defends Administrators' remuneration 'you can't have your cake and eat it too' (3/06/2022) 
 Case: A 'blatant example of phoenixing' - anti-phoenixing laws to the rescue (24/05/2022) 
 Case: Refresher on the pre-conditions for leave under section 459S (23/05/2022) 
 Case: NSWSC clarifies priority of claims over R&D tax refunds between employees and secured creditor (17/05/2022) 
 Case: Judicial advice sought re character, enforceability & priority of entitlements to trust assets (19/04/2022) 
 Case: Liquidators seek to appoint themselves as administrators (7/04/2022) 
 Case: When is defeating creditors the 'main purpose' of a transfer of property? (4/03/2022) 
 Case: Liquidator's disclaimer of contaminated land set aside - Victorian Court of Appeal decision (28/02/2022) 
 Case: Use of public examination powers significantly increased by High Court (23/02/2022) 
 Case: Can cash derived from income ever be 'after-acquired' property? (15/02/2022) 
 Case: Independence - A shift in the test? (21/12/2021) 
 Case: Section 444GA(1) - Not just for deed administrators (1/12/2021) 
 Case: The scope of limiting document production orders pursuant to a public examination (24/11/2021) 
 Case: Court looks at series of transactions which as a whole aim to defeat creditors in a bankruptcy (16/11/2021) 
 Case: Examining purpose and motivation - eligible applicants & public examinations (10/11/2021) 
 Case: Court validation of a voluntary administrator's appointment (1/11/2021) 
 Case: Settle down - fiduciaries, accessories and settlement against multiple defendants (25/10/2021) 
 Case: A recap of liquidators' remuneration principles (18/10/2021) 
 Case: The use of s 447A of the Corporations Act to facilitate a share transfer (6/10/2021) 
 Case: Staying or adjourning a winding up application during a receivership (29/09/2021) 
 Case: Appointing a special purpose liquidator or reviewing liquidator (20/09/2021) 
 Case: Determining insolvency as a preliminary question in parallel proceedings (15/09/2021) 
 Case: Litigation funding agreements - principles for court approval (6/09/2021) 
 Case: Liquidator may rely on unreconciled accounts to prove a company is insolvent (30/08/2021) 
 Unfair preferences - continued relevance of the doctrine of ultimate effect (18/08/2021) 
 Case: Sequestration orders and asking the court to go behind a judgment debt (11/08/2021) 
 Case: Obtaining an extension of time to set aside an examination summons (2/08/2021) 
 Case: Statutory demands – informal service and a declaration of nullity as a set aside alternative (26/07/2021) 
 Case: Bankruptcy Trustees recover real estate held on resulting trust for bankrupt (19/07/2021) 
 Case: 'Examinable affairs' provides a low threshold in the issue of an examination summons (12/07/2021) 
 Case: The need to plead carefully to set aside a statutory demand (5/07/2021) 
 Case: A contract for sale is not a financial record available for inspection (30/06/2021) 
 Case: Second Badenoch decision creates even more uncertainty for unfair preference recoveries (28/06/2021) 
 Case: FEG redundancy exclusions – termination of SME employees after restructure (22/06/2021) 
 Case: Holding the assets – Federal Court guidance on asset valuation and distribution (15/06/2021) 
 Case: Look before you launch litigation – a cautionary tale for liquidators (12/06/2021) 
 Case: Can s 139ZQ notices be issued after discharge & to extend limitation periods? (8/06/2021) 
 Case: Disclaimed property vested absolutely in mortgagees (26/05/2021) 
 Case: Retrospective approval to sell trust assets is a last resort (19/05/2021) 
 Case: Approval for proposed transactions under ss 477(2A) & 477(2B) of Corporations Act (13/05/2021) 
 Case: Full Federal Court expands scope for running accounts & overturns peak indebtedness rule (11/05/2021) 
 Case: Liquidator of corporate trustee seeks to sell assets subject to trustee's right of exoneration (5/05/2021) 
 Case: Distributing dividends when a bankrupt has not filed a statement of affairs (27/04/2021) 
 Case: Can assignees of liquidators' claims use public examination docs in enforcement proceedings? (21/04/2021) 
 Case: When a liquidator is also the bankruptcy trustee of the company's sole shareholder (13/04/2021) 
 Case: Discretion to extend adjournment period for creditors' meetings (7/04/2021) 
 Case: GST credits on pre-appointment acquisitions (31/03/2021) 
 Case: Federal Court expands the scope for effecting valid service of a statutory demand (31/03/2021) 
 Case: ATO to repay $2m in 'third party' preferential payments made while company subject to DOCA (24/03/2021) 
 Case: Court grants extension of time for SPLs to bring voidable transaction claims (22/03/2021) 
 Case: Another judgment on interaction of SBR & winding up (17/03/2021) 
 Case: Establishing breach & accessorial liability does not equate to loss or damage (12/03/2021) 
 Case: Small business restructuring & winding up - is the right balance being struck? (9/03/2021) 
 Case: When is a company insolvent? (3/03/2021) 
 Case: Considerations for the appointment of a special purpose liquidator (23/02/2021) 
 Case: Conduct of director in an application to wind up on just & equitable grounds (15/02/2021) 
 Case: Obtaining summary judgments in insolvent trading claims (9/02/2021) 
 Case: Court dismisses landlord application to wind up tenant (3/02/2021) 
 Case: Restructured companies to vest like the rest (14/12/2020) 
 Case: Right to tenant's property on abandonment of lease by liquidator (8/12/2020) 
 Case: Court finds utility in the appointment of an insolvency referee (1/12/2020) 
 Case: Creditors - powers of examination (23/11/2020) 
 Case: When does a transfer of shares under s 444GA cause unfair prejudice to shareholders? (17/11/2020) 
 Case: Dealing with trust assets where the trustee is bankrupt (13/11/2020) 
 Case: Liquidators justified in regarding a secured creditor as subrogated in equity to the priority (10/11/2020) 
 Case: Litigation cannot proceed as a stalking horse for those who stand behind it (3/11/2020) 
 Case: Court preserves confidentiality of deed of assignment between ATO & liquidator (26/10/2020) 
 Case: Remuneration: proportionality, complexity & evidence of reasonableness considered (20/10/2020) 
 Case: Court refuses to exercise discretion to set aside a DOCA (14/10/2020) 
 Case: Court clarifies standing for membership of committees of inspection (1/10/2020) 
 Case: Application to remove liquidators refused (30/09/2020) 
 Case: Consideration of remuneration based on manner and quality of work (22/09/2020) 
 Case: Virgin - Administrator's power of sale versus creditor democracy (21/09/2020) 
 Case: Voluntary administrator entitled to passwords to access electronic data (14/09/2020) 
 Case: State environment legislation trumps liquidators' disclaimer (again) (10/09/2020) 
 Case: Trustee entitled to remuneration despite sequestration order set aside (7/09/2020) 
 Case: When does a third-party payment constitute an unfair preference? (31/08/2020) 
 Case: Court clarifies where a public examination will constitute an abuse of process (25/08/2020) 
 Case: Court considers treatment of rent accrued in standstill period (23/07/2020) 
 Case: Court releases reasons in Virgin confidentiality application (16/07/2020) 
 Case: Virgin administration update - further orders for modification to personal liability made (14/07/2020) 
 Case: Court declines to order inquiry in dispute between companies in liquidation (7/07/2020) 
 Case: Guidance on s 561 and assets within the circulating security interest (25/06/2020) 
 Case: Confirmation of leave to issue mothership proceedings in Federal Court (17/06/2020) 
 Case: The Last Lap: examinations, information requests and personal costs (2/06/2020) 
 Case: Former deed administrators can recover unfair preference as liquidators (21/05/2020) 
 Cases: Further Court orders in Colette and Techfront (12/05/2020) 
 Case: Liquidator justified in admitting proof of debt by related company (7/05/2020) 
 Case: Reasons released in first Virgin court application (5/05/2020) 
 Case: Court makes orders to facilitate voluntary administration (24/04/2020) 
 Case: Public nature of liquidator's examinations emphasised (23/04/2020) 
 Case: Administrators given short exemption from lease liabilities (15/04/2020) 
 Case: High Court confirms broad scope of officer under Corporations Act (17/03/2020) 
 Case: Court applications for appointment as receiver over trust assets continue (6/03/2020) 
 Case: Court makes orders concerning information sharing and privacy (28/02/2020) 
 Case: Remuneration approval for special purpose liquidators (19/02/2020) 
 Case: Court discounts remuneration claim (14/02/2020) 
 Case: Consent position reached after attempt to replace administrator lands in Court (6/02/2020) 
 Case: WA Court provides guidance on pooling orders in liquidation (3/02/2020) 
 Case: Liquidator succeeds in maintaining legal professional privilege over company documents (20/01/2020) 
 Case: Judge expresses concern over disbursement approval (20/12/2019) 
 Case: High Court confirms when property held on trust will vest in bankruptcy trustee (16/12/2019) 
 Case: High Court confirms trustee's caveatable interest (13/12/2019) 
 Case: Appellate court updates position on exercise of casting vote and lPS and IPR (13/12/2019) 
 Case: Disputed debt leads to DOCA being overturned (3/12/2019) 
 Case: Application to reduce document production categories in public examination (20/11/2019) 
 Case: Court gives clear guidance on the standards required for liquidators (18/11/2019) 
 Case: Bankrupts attempt to injunct trustee fails (6/11/2019) 
 Case: Liquidator successful on appeal in unfair preference case (1/11/2019) 
 Case: Guidance on principles for issue of warrant under s 530C (16/10/2019) 
 Case: Court approval given to liquidator assigning of all company's causes of action to Commission (18/09/2019) 
 Cases: Recent cases dealing with illegal phoenix behaviour (13/09/2019) 
 Case: Appointment as receiver of two trusts formerly controlled by insolvent corporate trustee (4/09/2019) 
 Case: Purported assignment of security not recognised due to insufficient evidence (30/08/2019) 
 Case: Court refuses leave to join insurer to insolvent trading proceedings (19/08/2019) 
 Case: Equitable contribution and insolvent trading liability arising from settlement (9/08/2019) 
 Case: All creditors are created equal, unless they are related (1/08/2019) 
 Case: Court declines to replace liquidators over independence concerns (18/07/2019) 
 Case: Court awards costs against insolvency practitioner personally (26/06/2019) 
 Case: High Court confirms treatment of claims in insolvency of trading trusts (20/06/2019) 
 Cases: Court guidance on the admission of proofs of debt where liquidator in conflict (18/06/2019) 
 Case: Insolvent trading established from failure to keep proper books and records (7/06/2019) 
 Case: Application for access to supporting affidavit for examination summons refused (3/06/2019) 
 Case: ASIC fails in obtaining inquiry into liquidators conduct (13/05/2019) 
 Case: Confirmation of appointment of administrators following on majority opinion of directors (9/05/2019) 
 Case: Federal Court releases reasons in case applying Model Law (29/04/2019) 
 Case: Confirmation of approach to s 477(2B) approval to fund solvency report (23/04/2019) 
 Case: Full Federal Court maintains trial judges exercise of discretion to not grant time extensio (17/04/2019) 
 Case: Summary judgment for breach of insolvent trading provisions (3/04/2019) 
 Case: NSW Supreme Court confirms approach to remuneration determinations (27/03/2019) 
 Case: Receivers cleared by Court to make s 561 distribution (20/03/2019) 
 Case: Court confirms continuation of liquidator appointment after resolution fails to pass (12/03/2019) 
 Case: Court guidance on remuneration reports and determinations (18/02/2019) 
 Case: The mothership lands: insolvency findings in Bias Boating unfair preference proceedings (21/01/2019) 
 Case: Supreme Court of New South Wales confirms that when the Commonwealth asks it will receive (17/01/2019) 
 Date for High Court hearing of Amerind appeal set (7/12/2018) 
 The Mighty River continues to run: the next instalment (5/12/2018) 
 Case: Dispute as to timing of service of statutory demand cannot operate as an enforceable estoppel (28/11/2018) 
 Perception of independence an important consideration in appointment of liquidators (18/10/2018) 
 Guidance on evidence required for 'genuine dispute' mere assertion is not enough (16/10/2018) 
 Existing FEG recovery provisions to be considered further by the Federal Court (10/10/2018) 
 Case: Application to court confirms capacity to continue as administrators (3/10/2018) 
 Hamersley Iron v Forge Group Power appellate guidance (28/09/2018) 
 Special leave denied in Linc Energy case (17/09/2018) 
 Trusts and registrations on the PPSR (12/09/2018) 
 Case: Application for termination of winding up in a post-ILRA context (12/09/2018) 
 High Court confirms holding DOCAs as a valid tool which reflects the flexibility of Part 5.3A (12/09/2018) 
 The power of a trustee in bankruptcy to acquire property confirmed by Court (23/08/2018) 
 Case: Amerind decision to be considered by High Court (20/08/2018) 
 Requirements for no reasonable grounds defence in s 588FG(2)(b) clarified by WA Court of Appeal (31/07/2018) 
 NSW Court of Appeal guidance on recovery of third party payments as unfair preferences (30/07/2018)