Bingham v Iona Corporation Pty Ltd [1995] FCA 221

Bingham v Iona Corporation Pty Ltd [1995] FCA 221

Bingham failed to establish on the evidence that Iona was unable to pay its debts as and when they become due; the available credit balance in Iona's bank account was sufficient to satisfy its current liabilities. Accordingly, a prima facie case of insolvency was not made out, and leave to apply for winding up in insolvency was refused at this stage.

Jurisdiction
Australia
Judgment Date
11 April 1995
Procedural Posture
Corporations Winding Up Application / Application by Director for Leave to Apply for Winding Up in Insolvency
Outcome
Leave to apply for winding up in insolvency refused at this stage; leave reserved to restore application on three days' notice.
Legal Topics
['winding Up in Insolvency' "director's Application for Leave" 'prima Facie Insolvency' 'company Debts and Solvency']
['corporations Law' 'insolvency'] ['winding Up in Insolvency' "director's Application for Leave" 'prima Facie Insolvency' 'company Debts and Solvency']

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Procedural Posture

Corporations Winding Up Application / Application by Director for Leave to Apply for Winding Up in Insolvency

Legal Issues

  1. 1 ['Whether a prima facie case has been established that Iona Corporation Pty Limited is unable to pay its debts as and when they become due and payable (insolvent) so as to justify granting leave to the applicant director to apply for winding up in insolvency under ss 459A and 459P of the Corporations Law']

Ratio Decidendi

Bingham failed to establish on the evidence that Iona was unable to pay its debts as and when they become due; the available credit balance in Iona's bank account was sufficient to satisfy its current liabilities. Accordingly, a prima facie case of insolvency was not made out, and leave to apply for winding up in insolvency was refused at this stage.

Court Disposition

Leave to apply for winding up in insolvency refused at this stage; leave reserved to restore application on three days' notice.

Orders

  • ['Application for leave to apply for winding up in insolvency refused as per paragraph 1 of the application at this stage.' 'Undertaking of Melbourne in relation to sum of $50,893.81 to be formalised.' "Leave granted to Bingham on three days' notice to restore the application for leave under s 459P(2)." "Bingham to...