Parker, In the matter of Purcom No 34 Pty Limited (In Liq) (ACN 006 794 672) [2009] FCA 1359

Parker, In the matter of Purcom No 34 Pty Limited (In Liq) (ACN 006 794 672) [2009] FCA 1359

Approval was appropriate because the Receiver had exercised his own commercial judgment, the Supply Deed would enable the business to continue trading under a recognisable brand and to obtain stock, there was no evidence that Jax would receive a benefit disproportionate to its risk, and the arrangement could protect, preserve or possibly enhance the Company's assets and undertaking; however, the approval orders were stayed until the First and Third Defendants were served and given an opportunity to object.

Jurisdiction
Australia
Judgment Date
19 November 2009
Procedural Posture
Corporations Matter Concerning Approval for a Receiver and Manager to Enter Into a Supply Deed / Interlocutory Application Filed by the Receiver on 13 November 2009, Heard and Decided on 19 November 2009
Outcome
Approval granted to the Receiver to enter into the Supply Deed, with the operative orders stayed pending service on the First and Third Defendants and any objection by 4:00pm on 26 November 2009.
Legal Topics
['court Approval for Receiver to Enter Into Agreement' 'corporations Act 2001 (cth) Ss 424 and 477(2 B)' 'federal Court Rules O 26 R 7' 'receiver Trading Business and Preserving Goodwill']
['corporations' 'receivership and Liquidation' 'federal Court Procedure'] ['court Approval for Receiver to Enter Into Agreement' 'corporations Act 2001 (cth) Ss 424 and 477(2 B)' 'federal Court Rules O 26 R 7' 'receiver Trading Business and Preserving Goodwill']

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Procedural Posture

Corporations Matter Concerning Approval for a Receiver and Manager to Enter Into a Supply Deed / Interlocutory Application Filed by the Receiver on 13 November 2009, Heard and Decided on 19 November 2009

Legal Issues

  1. 1 ['Whether the Court should approve or authorise the Receiver to enter into the Supply Deed with Jax Quickfit Franchising Systems Pty Limited.' "Whether the proposed Supply Deed was an appropriate exercise of the Receiver's commercial judgment and assisted in preserving or protecting the Company's business and assets." 'Whether orders should be stayed to allow service on the First and Third Defendants and an opportunity to object.']

Ratio Decidendi

Approval was appropriate because the Receiver had exercised his own commercial judgment, the Supply Deed would enable the business to continue trading under a recognisable brand and to obtain stock, there was no evidence that Jax would receive a benefit disproportionate to its risk, and the arrangement could protect, preserve or possibly enhance the Company's assets and undertaking; however, the approval orders were stayed until the First and Third Defendants were served and given an opportunity to object.

Court Disposition

Approval granted to the Receiver to enter into the Supply Deed, with the operative orders stayed pending service on the First and Third Defendants and any objection by 4:00pm on 26 November 2009.

Orders

  • ['Approval is given to Peter Ngan, the receiver and manager of Purcom No 34 Admin Pty Limited (Receiver and Manager Appointed) (ACN 134 158 508), to enter into the Supply Deed between Jax Quickfit Franchising Systems Pty Limited (ACN 112 050 058) and Peter Ngan, a copy of which is marked "A" and attached to the...