Silvia v Fea Carbon Pty Ltd (ACN 009 505 195) (Administrators Appointed) (Receivers and Managers Appointed) (No 2) [2010] FCA 572

Silvia v Fea Carbon Pty Ltd (ACN 009 505 195) (Administrators Appointed) (Receivers and Managers Appointed) (No 2) [2010] FCA 572

A further short extension was warranted because, although information from the receivers had resolved uncertainty about inter-company accounts and prepayments, uncertainty remained as to the precise related company landlord, which was important particularly to any possible set off against rent. The extension should not cover third-party leases because no external landlord rent would fall due before 1 July 2010 and no external landlord was on notice of the application.

Jurisdiction
Australia
Judgment Date
04 June 2010
Procedural Posture
Corporations Voluntary Administration / Further Application for Extension of Time to Give Notice Under S 443 B of the Corporations Act 2001 (cth) and for Administrators to Be Excused From Personal Liability for Rent
Outcome
Application allowed in part.
Legal Topics
['voluntary Administration' "administrator's Liability for Rent" 'extension of Time Under S 443 B' 'leases' 'set Off']
['corporations Law' 'insolvency'] ['voluntary Administration' "administrator's Liability for Rent" 'extension of Time Under S 443 B' 'leases' 'set Off']

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Procedural Posture

Corporations Voluntary Administration / Further Application for Extension of Time to Give Notice Under S 443 B of the Corporations Act 2001 (cth) and for Administrators to Be Excused From Personal Liability for Rent

Legal Issues

  1. 1 ['Whether the administrators should receive a further extension of time to give notice under s 443B of the Corporations Act 2001 (Cth).' 'Whether the administrators should be excused from personal liability for rent during the further extended period.' 'Whether the requested relief should extend to leases granted by third parties external to the related companies.']

Ratio Decidendi

A further short extension was warranted because, although information from the receivers had resolved uncertainty about inter-company accounts and prepayments, uncertainty remained as to the precise related company landlord, which was important particularly to any possible set off against rent. The extension should not cover third-party leases because no external landlord rent would fall due before 1 July 2010 and no external landlord was on notice of the application.

Court Disposition

Application allowed in part.

Orders

  • ['A further short extension of 10 days should be granted for the time within which a s 443B notice can be given and during which the administrators will not be liable for rent in respect of the relevant related company leases.' 'The relief sought in respect of leases granted by third parties was not allowed.' 'Costs...