Deputy Commissioner of Taxation v Scottsdale Homes No 3 Pty Ltd (No 2) [2009] FCA 190

Deputy Commissioner of Taxation v Scottsdale Homes No 3 Pty Ltd (No 2) [2009] FCA 190

The Court was satisfied that it had power to extend the convening period and adjourn the winding up application, and that the orders should be made because the administrator and the principal arm's length creditor had independently formed the view that the extension and adjournment were warranted, the Commissioner did not oppose the orders, the company was dormant, and a $50,000 injection meant funds otherwise available for creditors were not being diminished by administration expenses, notwithstanding the public interest in prompt administrations and the company's prima facie inability to pay its debts.

Jurisdiction
Australia
Judgment Date
25 February 2009
Procedural Posture
Corporations Administration and Application for Winding Up / Application to Adjourn Winding Up Application and Extend the Convening Period Under S 439 a of the Corporations Act 2001 (cth)
Outcome
Orders made in terms of the draft proposed by the parties.
Legal Topics
['administration' 'winding Up' "creditors' Meeting" 'extension of Convening Period' 'adjournment']
['corporations Law' 'insolvency' 'taxation'] ['administration' 'winding Up' "creditors' Meeting" 'extension of Convening Period' 'adjournment']

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Procedural Posture

Corporations Administration and Application for Winding Up / Application to Adjourn Winding Up Application and Extend the Convening Period Under S 439 a of the Corporations Act 2001 (cth)

Legal Issues

  1. 1 ['Whether the Court had power to further extend the convening period prescribed by s 439A of the Corporations Act 2001 (Cth).' 'Whether the Court had power to further adjourn the winding up application.' 'Whether, in the circumstances of delayed refinancing, the convening period should be extended and the winding up application adjourned.']

Ratio Decidendi

The Court was satisfied that it had power to extend the convening period and adjourn the winding up application, and that the orders should be made because the administrator and the principal arm's length creditor had independently formed the view that the extension and adjournment were warranted, the Commissioner did not oppose the orders, the company was dormant, and a $50,000 injection meant funds otherwise available for creditors were not being diminished by administration expenses, notwithstanding the public interest in prompt administrations and the company's prima facie inability to pay its debts.

Court Disposition

Orders made in terms of the draft proposed by the parties.

Orders

  • ['The application for winding up filed 12 November 2009 be adjourned to 9.30am on 11 March 2009.' 'The convening period prescribed by Section 439A be extended to 12 March 2009.' 'Until further order, all proceedings in respect of the application made in matter QUD54 of 2009 be heard together with all proceedings in...