In the matter of Barclays Bank plc [2012] NSWSC 1095

In the matter of Barclays Bank plc [2012] NSWSC 1095

The failure to register Barclays' security interests within the 20 business day period was due to inadvertence by the solicitor responsible for the transaction. The delay of about two months was not particularly long, Centrebet was shown to be in a strong financial position with no material adverse change, no material new debt, and no relevant other security interests, and the risk of prejudice to other creditors was remote. It was therefore a proper exercise of discretion under s 588FM to fix 9 August 2012 as the registration time without conditions.

Jurisdiction
Australia
Judgment Date
24 August 2012
Procedural Posture
Application Under S 588 FM of the Corporations Act 2001 (cth) for Extension of Time for Registration of PPSA Security Interests / Originating Process; Ex Tempore Principal Judgment
Outcome
Order made pursuant to s 588FM of the Corporations Act 2001 (Cth) fixing 9 August 2012 as the registration time for security interests granted to the Plaintiff in specified collateral.
Legal Topics
['vesting of PPSA Security Interests' 'extension of Time for Registration' 'inadvertent Failure to Register Security Interests' 'prejudice to Creditors or Shareholders']
['corporations' 'personal Property Securities'] ['vesting of PPSA Security Interests' 'extension of Time for Registration' 'inadvertent Failure to Register Security Interests' 'prejudice to Creditors or Shareholders']

Case Brief

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Procedural Posture

Application Under S 588 FM of the Corporations Act 2001 (cth) for Extension of Time for Registration of PPSA Security Interests / Originating Process; Ex Tempore Principal Judgment

Legal Issues

  1. 1 ['Whether the failure to register the relevant security interests within the 20 business day period was accidental or due to inadvertence or some other sufficient cause under s 588FM(2) of the Corporations Act 2001 (Cth).' 'Whether fixing 9 August 2012 as the registration time would prejudice creditors or shareholders or otherwise justify relief under s 588FM.' 'Whether any conditions should be imposed on the order fixing a later registration time.']

Ratio Decidendi

The failure to register Barclays' security interests within the 20 business day period was due to inadvertence by the solicitor responsible for the transaction. The delay of about two months was not particularly long, Centrebet was shown to be in a strong financial position with no material adverse change, no material new debt, and no relevant other security interests, and the risk of prejudice to other creditors was remote. It was therefore a proper exercise of discretion under s 588FM to fix 9 August 2012 as the registration time without conditions.

Court Disposition

Order made pursuant to s 588FM of the Corporations Act 2001 (Cth) fixing 9 August 2012 as the registration time for security interests granted to the Plaintiff in specified collateral.

Orders

  • ['An order pursuant to s 588FM of the Corporations Act 2001 (Cth) fixing 9 August 2012 as the registration time for the security interests granted to the Plaintiff in the trademark referred to in registration number 201208090053001 in the register established under the Personal Property Securities Act 2009 (Cth).'...