Hughes v Zhenya Holdings Pty Ltd, in the matter of Malt Supper Club Pty Ltd (In liquidation) [2017] FCA 837

Hughes v Zhenya Holdings Pty Ltd, in the matter of Malt Supper Club Pty Ltd (In liquidation) [2017] FCA 837

The Court was satisfied, on the basis of written and oral submissions, that the legal bases advanced for the proposed declarations and orders were correct and that there was no controversy about those bases. The first defendant's concern about payment of liquidators' fees was addressed by the first plaintiffs' undertaking to hold $148,500 on trust pending approval by creditors or the Court. Accordingly, the declarations, approvals, validation orders, PPSR amendment order, injunction, waiver of service and costs orders were made.

Jurisdiction
Australia
Judgment Date
24 July 2017
Procedural Posture
Originating Process in a Corporations and Corporate Insolvency Matter Concerning Liquidation, Approval of a Sale Deed, PPSR Registration and Injunctive Relief / Final Orders and Reasons for Judgment on the Plaintiffs' Application
Outcome
Application granted; declarations and orders made, including orders by consent.
Legal Topics
['liquidation' 'approval of Liquidators Entering Agreement Under S 477(2 B) of the Corporations Act 2001 (cth)' 'extension of Time Under S 1322(4)(d) of the Corporations Act 2001 (cth)' 'personal Property Securities Register' 'secured Creditor Status' 'injunctive Relief' 'waiver of Time for Service']
['corporations' 'corporate Insolvency' 'practice and Procedure'] ['liquidation' 'approval of Liquidators Entering Agreement Under S 477(2 B) of the Corporations Act 2001 (cth)' 'extension of Time Under S 1322(4)(d) of the Corporations Act 2001 (cth)' 'personal Property Securities Register' 'secured Creditor Status' 'injunctive Relief' 'waiver of Time for Service']

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Procedural Posture

Originating Process in a Corporations and Corporate Insolvency Matter Concerning Liquidation, Approval of a Sale Deed, PPSR Registration and Injunctive Relief / Final Orders and Reasons for Judgment on the Plaintiffs' Application

Legal Issues

  1. 1 ['Whether the period for making an application under s 477(2B) of the Corporations Act 2001 (Cth) should be extended nunc pro tunc.' 'Whether approval should be given to the liquidators to enter into the Sale of Business Deed notwithstanding that obligations may be discharged by performance more than three months after it was entered into.' 'Whether the Sale Deed should be declared not invalid by reason of having been entered into before approval under s 477(2B).' 'Whether the first defendant should be declared a secured creditor and required to amend the Personal Property Securities Register to remove its registration.' 'Whether the first defendant should be restrained from enforcing or taking steps to register any further security interest on the Personal Property Securities Register.' 'Whether time for service of the originating application should be waived.']

Ratio Decidendi

The Court was satisfied, on the basis of written and oral submissions, that the legal bases advanced for the proposed declarations and orders were correct and that there was no controversy about those bases. The first defendant's concern about payment of liquidators' fees was addressed by the first plaintiffs' undertaking to hold $148,500 on trust pending approval by creditors or the Court. Accordingly, the declarations, approvals, validation orders, PPSR amendment order, injunction, waiver of service and costs orders were made.

Court Disposition

Application granted; declarations and orders made, including orders by consent.

Orders

  • ["The first defendant at all material times since 2 June 2016, being the date of registration number 201606020046992 on the Personal Property Securities Register, has been a secured creditor, as that term is defined in s 51E of the Corporations Act 2001 (Cth), and for the purposes of Part 5.6 of the Act will...