Sims, in the matter of Huon Corporation Pty Limited (Administrators Appointed) [2006] FCA 1201

Sims, in the matter of Huon Corporation Pty Limited (Administrators Appointed) [2006] FCA 1201

Clause 6 liabilities under the Supply Agreements do not constitute debts for services rendered under s 443A; however, the Court may, and does, exercise its power under s 447A to order that such liabilities be deemed to have been incurred by the administrators under s 443A for services rendered.

Parties
First Plaintiffs: Anthony Milton Sims, Scott Darren Pascoe and Kenneth Stewart Sellers in their capacities as administrators of Huon Corporation Pty Limited (Administrators Appointed) ACN 115 243 206; Second Plaintiff: Huon Corporation Pty Limited (Administrators Appointed) ACN 115 243 206
Jurisdiction
Australia
Judgment Date
01 September 2006
Procedural Posture
Corporations Case (administration) / Application for Orders Under Corporations Act S 447 a
Outcome
Order granted under s 447A
Legal Topics
Administrator Liability, Supply Agreement, Statutory Indemnity, Section 443 a Debts, Section 447 a Court Order
Corporations Law Insolvency Administration Administrator Liability Supply Agreement Statutory Indemnity Section 443 a Debts Section 447 a Court Order

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Parties

Anthony Milton Sims, Scott Darren Pascoe and Kenneth Stewart Sellers in their capacities as administrators of Huon Corporation Pty Limited (Administrators Appointed) ACN 115 243 206

First Plaintiffs

Huon Corporation Pty Limited (Administrators Appointed) ACN 115 243 206

Second Plaintiff

Procedural Posture

Corporations Case (administration) / Application for Orders Under Corporations Act S 447 a

Legal Issues

  1. 1 Whether liabilities under clause 6 of the Supply Agreements are debts for which administrators are liable under s 443A of the Corporations Act 2001 (Cth)
  2. 2 Whether the Court should make an order under s 447A deeming such liabilities to be debts incurred for services rendered

Ratio Decidendi

Clause 6 liabilities under the Supply Agreements do not constitute debts for services rendered under s 443A; however, the Court may, and does, exercise its power under s 447A to order that such liabilities be deemed to have been incurred by the administrators under s 443A for services rendered.

Court Disposition

Order granted under s 447A

Orders

  • Pursuant to s 447A(1) of the Corporations Act 2001 (Cth), liabilities incurred under clause 6 of the Supply Agreements are deemed to have been incurred by the administrators for services rendered under s 443A, subject to the limitations of those agreements.