In the matter of Heavy Plant Leasing Pty Ltd (In Liquidation) (ACN 151 786 677) [2018] NSWSC 707

In the matter of Heavy Plant Leasing Pty Ltd (In Liquidation) (ACN 151 786 677) [2018] NSWSC 707

Although the payment was preferential, there were no reasonable grounds in the circumstances for the defendant to suspect the company's insolvency at the time of receipt of payment, given the context of the delay, explanations offered, industry practice, time of year, and eventual full satisfaction of the debt immediately after demand.

Parties
First Plaintiff: Neil Robert Cussen and John Lethbridge Greig in their capacity as joint and several liquidations of Heavy Plant Leasing Pty Limited (in liquidation) (ACN 151 786 677); Second Plaintiff: Heavy Plant Leasing Pty Limited (in liquidation) (ACN 151 786 577); Defendant: Christine Mancer
Jurisdiction
Australia
Judgment Date
08 February 2018
Procedural Posture
Corporations List Recovery Proceedings / Judgment
Outcome
Judgment for the defendant
Legal Topics
Winding Up, Voidable Transactions, Unfair Preference, Insolvent Transaction, Good Faith Defence, Suspicion of Insolvency
Corporations Law Equity Winding Up Voidable Transactions Unfair Preference Insolvent Transaction Good Faith Defence Suspicion of Insolvency

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Parties

Neil Robert Cussen and John Lethbridge Greig in their capacity as joint and several liquidations of Heavy Plant Leasing Pty Limited (in liquidation) (ACN 151 786 677)

First Plaintiff

Heavy Plant Leasing Pty Limited (in liquidation) (ACN 151 786 577)

Second Plaintiff

Christine Mancer

Defendant

Procedural Posture

Corporations List Recovery Proceedings / Judgment

Legal Issues

  1. 1 Whether the payment had a preferential effect under s 588FF of the Corporations Act 2001
  2. 2 Whether the defendant had reasonable grounds to suspect insolvency under s 588FG(2) of the Corporations Act 2001

Ratio Decidendi

Although the payment was preferential, there were no reasonable grounds in the circumstances for the defendant to suspect the company's insolvency at the time of receipt of payment, given the context of the delay, explanations offered, industry practice, time of year, and eventual full satisfaction of the debt immediately after demand.

Court Disposition

Judgment for the defendant

Orders

  • Judgment for the defendant
  • Plaintiffs to pay the defendant's costs, except where otherwise ordered