Mansoor, in the matter of Tvesa Investments Pty Ltd (in liq) [2024] FCA 290

Mansoor, in the matter of Tvesa Investments Pty Ltd (in liq) [2024] FCA 290

Pursuant to s 437D of the Corporations Act, the reverse transfer (Evening Transaction) by Tvesa from Mansa Sons was void ab initio. Mansa Sons therefore retained proprietary entitlement to the remaining funds in Tvesa’s account, justifying the liquidators, per s 90-15 of the Insolvency Practice Schedule, in transferring those funds to Mansa Sons as the proper recipient. No discretionary or equitable factors warranted withholding the order sought.

Jurisdiction
Australia
Judgment Date
08 February 2024
Procedural Posture
Corporations – Application Under S 90 15 of the Insolvency Practice Schedule (corporations) / Application for Directions/orders by Liquidators
Outcome
Orders granted; application allowed.
Legal Topics
['void Transactions in Administration' 'liquidator’s Duties' 'proprietary Remedies' 'directions to Liquidators' 'restitution']
['corporate Insolvency' 'corporations Law'] ['void Transactions in Administration' 'liquidator’s Duties' 'proprietary Remedies' 'directions to Liquidators' 'restitution']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Corporations – Application Under S 90 15 of the Insolvency Practice Schedule (corporations) / Application for Directions/orders by Liquidators

Legal Issues

  1. 1 ['Whether liquidators are justified in transferring funds between two companies in liquidation, both under their control' "Meaning and legal effect of 'void' in s 437D of the Corporations Act 2001 (Cth)" 'Entitlement to proprietary or restitutionary remedy for funds transferred contrary to s 437D']

Ratio Decidendi

Pursuant to s 437D of the Corporations Act, the reverse transfer (Evening Transaction) by Tvesa from Mansa Sons was void ab initio. Mansa Sons therefore retained proprietary entitlement to the remaining funds in Tvesa’s account, justifying the liquidators, per s 90-15 of the Insolvency Practice Schedule, in transferring those funds to Mansa Sons as the proper recipient. No discretionary or equitable factors warranted withholding the order sought.

Court Disposition

Orders granted; application allowed.

Orders

  • ["Plaintiffs as liquidators of Tvesa Investments Pty Ltd (in liquidation) are justified in transferring $965,488.34 from Tvesa's bank account to Mansa Sons Pty Ltd (in liquidation) pursuant to s 90-15 of the Insolvency Practice Schedule (Corporations)." 'Costs of the proceeding are costs in the liquidation of Tvesa.']