FC Securities Pty Ltd v Menilden Creek Farming Pty Ltd [2018] NSWSC 1681

FC Securities Pty Ltd v Menilden Creek Farming Pty Ltd [2018] NSWSC 1681

Despite some unsatisfactory gaps in the evidence, the Court was prepared to infer that the failure to register the relevant financing statements was accidental within the meaning of s 588FM(2). The power to extend registration time was therefore enlivened, there was consent by the defendants, and no immediate prejudice to other parties. The orders were granted with liberty to apply for variation if insolvency events occur.

Jurisdiction
Australia
Judgment Date
01 November 2018
Procedural Posture
Application Under Corporations Act 2001 (cth), S 588 FM to Extend Registration Time for Security Interests / Ex Parte Hearing for Extension of Time
Outcome
Application granted
Legal Topics
['extension of Time for Registration of Security Interests' 'personal Property Securities Register' 'accidental or Inadvertent Failure to Register']
['corporations Law' 'equity'] ['extension of Time for Registration of Security Interests' 'personal Property Securities Register' 'accidental or Inadvertent Failure to Register']

Case Brief

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Procedural Posture

Application Under Corporations Act 2001 (cth), S 588 FM to Extend Registration Time for Security Interests / Ex Parte Hearing for Extension of Time

Legal Issues

  1. 1 ['Whether the failure to register the financing statements within the prescribed period was accidental or due to inadvertence, or amounted to another sufficient cause under s 588FM(2) of the Corporations Act 2001 (Cth)' 'Whether the extension of time for registration of the security interests should be granted']

Ratio Decidendi

Despite some unsatisfactory gaps in the evidence, the Court was prepared to infer that the failure to register the relevant financing statements was accidental within the meaning of s 588FM(2). The power to extend registration time was therefore enlivened, there was consent by the defendants, and no immediate prejudice to other parties. The orders were granted with liberty to apply for variation if insolvency events occur.

Court Disposition

Application granted

Orders

  • ['Time for the registration of the financing statements be extended pursuant to Corporations Act 2001 (Cth), s 588FM, subject to liberty to apply for any administrator or liquidator appointed to the defendants.']