Wanted World Wide (Australia) Limited v Commissioner of Taxation [2004] FCA 1063

Wanted World Wide (Australia) Limited v Commissioner of Taxation [2004] FCA 1063

The company was insolvent throughout the relevant six-month period, the defendant was an unsecured creditor, and the payments made to the defendant constituted unfair preferences and insolvent transactions that were voidable under s 588FE. Section 588FF permits the Court to be satisfied on admissions or agreement...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
19 August 2004
Procedural Posture
Corporations Proceeding by Liquidators for Orders Under S 588 Ff(1) of the Corporations Act 2001 (cth) Concerning Alleged Unfair Preferences / Final Orders and Reasons for Judgment
Outcome
Orders made for the defendant to pay the company $190,000 under s 588FF(1), with no order as to costs.
Legal Topics
['voidable Transactions' 'unfair Preferences' 'insolvent Transactions' 'liquidation' 'consent Orders' 'judicial Comity and Precedent']
['corporations' 'insolvency' 'practice and Procedure'] ['voidable Transactions' 'unfair Preferences' 'insolvent Transactions' 'liquidation' 'consent Orders' 'judicial Comity and Precedent']

Source-derived case record

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Procedural Posture

Corporations Proceeding by Liquidators for Orders Under S 588 Ff(1) of the Corporations Act 2001 (cth) Concerning Alleged Unfair Preferences / Final Orders and Reasons for Judgment

Legal Issues

  1. 1 ['Whether payments made by the company to the defendant during the six months before the relation back day were unfair preferences, insolvent transactions and voidable transactions under the Corporations Act 2001 (Cth).' 'Whether the Court could be satisfied for the purposes of s 588FF(1) on the basis of admissions or agreement between the parties, including consent by the Commissioner of Taxation.' 'Whether Crosbie, in the matter of Trollope Silverwood and Beck Pty Ltd (In Liquidation) v Commissioner of Taxation [2003] FCA 922; (2003) 21 ACLC 1659 should be followed.']

Ratio Decidendi

The company was insolvent throughout the relevant six-month period, the defendant was an unsecured creditor, and the payments made to the defendant constituted unfair preferences and insolvent transactions that were voidable under s 588FE. Section 588FF permits the Court to be satisfied on admissions or agreement where appropriate; Crosbie was plainly wrong on the consent order point and would not be followed. Because the transactions totalled $220,852 and the parties agreed to a commercial settlement for $190,000, an order under s 588FF(1) for $190,000 could be made without prejudice to affected parties.

Court Disposition

Orders made for the defendant to pay the company $190,000 under s 588FF(1), with no order as to costs.

Orders

  • ['The defendant be directed to pay the company an amount equal to the unfair preferences in the sum of $190,000 pursuant to the provisions of s 588FF(1) of the Corporations Act 2001 (Cth).' 'No order as to costs.']