Secatore, in the matter of Last Lap Pty Ltd (in liq) [2020] FCA 627

Secatore, in the matter of Last Lap Pty Ltd (in liq) [2020] FCA 627

The requests by Bob Jane Corp for information regarding the funding of the examinations were reasonable; none of the exceptions under r 70-15(2) of the Insolvency Practice Rules (Corporations) were made out by the liquidator, so the information and documents must be provided. Rodney Jane established an arguable case that the summons addressed to him exceeded the Court's power under s 596B as it sought documents about affairs not obviously examinable, and access to the supporting affidavit was likely to assist; he should therefore be permitted to inspect the affidavit under s 596C(2).

Jurisdiction
Australia
Judgment Date
14 May 2020
Procedural Posture
Interlocutory Applications Within Related Liquidation Proceedings / Determination of Two Interlocutory Applications: (1) for Disclosure of Affidavit Supporting Examination Summonses and (2) for Disclosure of Funding Arrangements by Liquidator
Outcome
Applications for disclosure of supporting affidavits and of information and documents about funding of examinations both granted; costs reserved.
Legal Topics
["liquidator's Obligation to Provide Information" 'inspection of Affidavits Supporting Examination Summonses' 'disclosure of Examination Funding Arrangements' 'scope of Examinable Affairs Under Corporations Act']
['insolvency' 'corporations Law'] ["liquidator's Obligation to Provide Information" 'inspection of Affidavits Supporting Examination Summonses' 'disclosure of Examination Funding Arrangements' 'scope of Examinable Affairs Under Corporations Act']

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Procedural Posture

Interlocutory Applications Within Related Liquidation Proceedings / Determination of Two Interlocutory Applications: (1) for Disclosure of Affidavit Supporting Examination Summonses and (2) for Disclosure of Funding Arrangements by Liquidator

Legal Issues

  1. 1 ['Whether a creditor is entitled to disclosure of information and documents relating to the funding of public examinations conducted by a liquidator under sections 596A and 596B of the Corporations Act 2001 (Cth)' "Whether an examinee is entitled to access the liquidator's affidavit in support of the issuing of a summons for examination under s 596B of the Corporations Act 2001 (Cth)" "Whether there is an arguable case that the issue of a summons for examination exceeded the court's power and, if so, whether access to the supporting affidavit should be permitted to assist in challenging the summons"]

Ratio Decidendi

The requests by Bob Jane Corp for information regarding the funding of the examinations were reasonable; none of the exceptions under r 70-15(2) of the Insolvency Practice Rules (Corporations) were made out by the liquidator, so the information and documents must be provided. Rodney Jane established an arguable case that the summons addressed to him exceeded the Court's power under s 596B as it sought documents about affairs not obviously examinable, and access to the supporting affidavit was likely to assist; he should therefore be permitted to inspect the affidavit under s 596C(2).

Court Disposition

Applications for disclosure of supporting affidavits and of information and documents about funding of examinations both granted; costs reserved.

Orders

  • ['The affidavit of Bruno Anthony Robert Secatore sworn on 19 June 2019 and filed in this proceeding on 25 June 2019 be made available for inspection by Rodney Bruce Jane and his legal advisors.' 'Rodney Bruce Jane must keep the affidavit confidential and not disclose it (or its contents) to any person other than his...