Commonwealth Bank of Australia v HM Aircraft Holdings Pty Ltd [2021] FCA 447

Commonwealth Bank of Australia v HM Aircraft Holdings Pty Ltd [2021] FCA 447

CBA's registration errors were due to inadvertence, data entry mistakes, and software issues, satisfying the requirements under s 588FM(2) of the Corporations Act and s 293(3)(a) of the PPSA. No actual prejudice to other secured parties or creditors was established, and the defendants did not oppose the application. It was therefore appropriate to extend the registration times for CBA's security interests and to grant the PMSI super priority extension order under s 293(1)(a) of the PPSA, with liberty to apply to discharge or vary the orders within six months if an insolvency event arises.

Jurisdiction
Australia
Judgment Date
30 April 2021
Procedural Posture
Originating Motion / Application for Extension of Registration Times and Related Orders
Outcome
Orders granted as sought, extending the registration times and periods for security interests and PMSIs, liberty to apply reserved, no order as to costs, motion adjourned sine die.
Legal Topics
['securities' 'financing Statements' 'registration Defects' 'extension of Time' 'purchase Money Security Interests (pmsi)' 'priority of Security Interests' 'remedial Orders']
['corporations' 'commercial Law' 'insolvency Law' 'personal Property Securities'] ['securities' 'financing Statements' 'registration Defects' 'extension of Time' 'purchase Money Security Interests (pmsi)' 'priority of Security Interests' 'remedial Orders']

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Procedural Posture

Originating Motion / Application for Extension of Registration Times and Related Orders

Legal Issues

  1. 1 ['Whether orders should be granted under s 588FM of the Corporations Act 2001 (Cth) to extend the registration times for security interests over aircraft collateral' 'Whether orders under s 293(1)(a) of the Personal Property Securities Act 2009 (Cth) should be made to extend the period for perfecting purchase money security interests to preserve super priority' 'Whether defects in registration of financing statements rendered securities ineffective by operation of the PPSA' 'Whether granting relief would prejudice other creditors or secured parties']

Ratio Decidendi

CBA's registration errors were due to inadvertence, data entry mistakes, and software issues, satisfying the requirements under s 588FM(2) of the Corporations Act and s 293(3)(a) of the PPSA. No actual prejudice to other secured parties or creditors was established, and the defendants did not oppose the application. It was therefore appropriate to extend the registration times for CBA's security interests and to grant the PMSI super priority extension order under s 293(1)(a) of the PPSA, with liberty to apply to discharge or vary the orders within six months if an insolvency event arises.

Court Disposition

Orders granted as sought, extending the registration times and periods for security interests and PMSIs, liberty to apply reserved, no order as to costs, motion adjourned sine die.

Orders

  • ['Dates in Annexure A fixed as the registration times for the relevant collateral under s 588FM of the Corporations Act 2001 (Cth) for s 588FL(2)(b)(iv) purposes.' 'Number of business days in s 62(3)(b) of the PPSA extended for financing statements in Annexure B under s 293(1)(a) of the PPSA.' 'Liberty reserved to...