James, in the matter of Liquor National Pty Ltd (in liq) v Liquor National Pty Ltd (in liq) [2017] FCA 721

James, in the matter of Liquor National Pty Ltd (in liq) v Liquor National Pty Ltd (in liq) [2017] FCA 721

The Court held that a deferral order should be made under s 509(6) as the application was brought properly and promptly, Rabobank and its liquidators were heard, and the apparent beneficial purpose threshold was met in the circumstances. The speculative prejudice to opposing parties did not outweigh this, and the orders for deferral and reinstatement were therefore appropriate.

Parties
Plaintiff: David Anthony James; First Defendant: Liquor National Pty Ltd (in liquidation); Second Defendant: Wine National Pty Ltd (in liquidation); Third Defendant: Print National Pty Ltd (in liquidation); Fourth Defendant: Print National Australia Pty Ltd (in liquidation); Fifth Defendant: Australian Services and Investments Commission; Creditor: Rabobank Australia Ltd
Jurisdiction
Australia
Judgment Date
21 June 2017
Procedural Posture
Corporations – Application for Deferral of Deregistration / Interlocutory Application and Orders
Outcome
Application for deferral of deregistration granted; orders made for deferral and reinstatement; further case management hearing listed.
Legal Topics
Company Deregistration, Deferral of Deregistration, External Administration, Reinstatement of Company, Liquidation
Corporations Law Company Deregistration Deferral of Deregistration External Administration Reinstatement of Company Liquidation

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Parties

David Anthony James

Plaintiff

Liquor National Pty Ltd (in liquidation)

First Defendant

Wine National Pty Ltd (in liquidation)

Second Defendant

Print National Pty Ltd (in liquidation)

Third Defendant

Print National Australia Pty Ltd (in liquidation)

Fourth Defendant

Australian Services and Investments Commission

Fifth Defendant

Rabobank Australia Ltd

Creditor

Procedural Posture

Corporations – Application for Deferral of Deregistration / Interlocutory Application and Orders

Legal Issues

  1. 1 Whether deregistration of companies should be deferred pursuant to s 509(6) of Corporations Act 2001 (Cth)
  2. 2 Appropriate timing and procedure for deferral order under s 509(6)
  3. 3 Whether threshold for beneficial purpose for deferral is met

Ratio Decidendi

The Court held that a deferral order should be made under s 509(6) as the application was brought properly and promptly, Rabobank and its liquidators were heard, and the apparent beneficial purpose threshold was met in the circumstances. The speculative prejudice to opposing parties did not outweigh this, and the orders for deferral and reinstatement were therefore appropriate.

Court Disposition

Application for deferral of deregistration granted; orders made for deferral and reinstatement; further case management hearing listed.

Orders

  • ASIC to deregister First Defendant on 21 June 2021 under s 509(6) Corporations Act 2001 (Cth)
  • ASIC to deregister Second Defendant on 21 June 2021 under s 509(6) Corporations Act 2001 (Cth)