In the matter of 100% Plumbing Maintenance Pty Ltd [2021] NSWSC 103

In the matter of 100% Plumbing Maintenance Pty Ltd [2021] NSWSC 103

The failures to register security interests within the required periods were accidental and arose from inadvertence associated with system changes and coding errors. No opposing party established prejudice or relevant reliance; no delay was such as to merit withholding relief. Statutory discretions under s 588FM Corporations Act 2001 (Cth) and s 293 PPSA are enlivened and should be exercised to extend the relevant registration times.

Parties
First Plaintiff: Toyota Finance Australia Ltd; Second Plaintiff: Australian Alliance Automotive Finance Pty Limited; First Defendants: 100% Plumbing Maintenance Pty Ltd and other named First Defendants in Schedules A and B to the Originating Process; Second Defendants: 4 Farmers Australia Pty Limited and the other named Second Defendants in Schedules C and D to the Originating Process
Jurisdiction
Australia
Judgment Date
18 February 2021
Procedural Posture
Application (corporations List) / Judgment After Hearing of Application for Extension of Time to Register Security Interests
Outcome
Orders extending time for registration of security interests under s 588FM Corporations Act 2001 (Cth) and s 293 PPSA granted.
Legal Topics
Extension of Time for Registering Security Interests, Purchase Money Security Interests (pmsi), Inadvertent or Mistaken Registration Error, Priority of Security Interests, Remedial Registrations
Corporations Law Personal Property Securities Law Equity Extension of Time for Registering Security Interests Purchase Money Security Interests (pmsi) Inadvertent or Mistaken Registration Error Priority of Security Interests Remedial Registrations

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Parties

Toyota Finance Australia Ltd

First Plaintiff

Australian Alliance Automotive Finance Pty Limited

Second Plaintiff

100% Plumbing Maintenance Pty Ltd and other named First Defendants in Schedules A and B to the Originating Process

First Defendants

4 Farmers Australia Pty Limited and the other named Second Defendants in Schedules C and D to the Originating Process

Second Defendants

Procedural Posture

Application (corporations List) / Judgment After Hearing of Application for Extension of Time to Register Security Interests

Legal Issues

  1. 1 Whether time should be extended under s 588FM of Corporations Act 2001 (Cth) to register security interests
  2. 2 Whether extension should be granted under s 293 of Personal Property Securities Act 2009 (Cth) to register security interests
  3. 3 Whether failures were accidental or inadvertent

Ratio Decidendi

The failures to register security interests within the required periods were accidental and arose from inadvertence associated with system changes and coding errors. No opposing party established prejudice or relevant reliance; no delay was such as to merit withholding relief. Statutory discretions under s 588FM Corporations Act 2001 (Cth) and s 293 PPSA are enlivened and should be exercised to extend the relevant registration times.

Court Disposition

Orders extending time for registration of security interests under s 588FM Corporations Act 2001 (Cth) and s 293 PPSA granted.

Orders

  • Time fixed for purposes of s 588FL(2)(b)(iv) of the Corporations Act 2001 (Cth) extended for Remedial Registrations as set out in Schedules A and B.
  • Time extended under s 293(1)(a) of the Personal Property Securities Act 2009 (Cth) for 15-business day period for relevant Remedial Registrations.