Elliott v Water Wheel Holdings Ltd (Subject to a Deed of Company Arrangement) [2004] FCAFC 253

Elliott v Water Wheel Holdings Ltd (Subject to a Deed of Company Arrangement) [2004] FCAFC 253

The terms of the DOCAs, particularly clause 11, are construed as including all assets and property of the company available at the date of distribution to creditors, not just property existing at the date of the DOCA. The judgment debts ordered by the Supreme Court of Victoria are such property. Accordingly, the administrators were entitled to issue bankruptcy notices based on those debts.

Jurisdiction
Australia
Judgment Date
10 September 2004
Procedural Posture
Appeal / Full Court Judgment on Appeal From the Federal Magistrates Court
Outcome
appeal dismissed
Legal Topics
['bankruptcy Notices' 'judgment Debts' 'deed of Company Arrangement' 'powers of Administrators' 'property Available Under Doca']
['bankruptcy' 'corporations Law'] ['bankruptcy Notices' 'judgment Debts' 'deed of Company Arrangement' 'powers of Administrators' 'property Available Under Doca']

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Procedural Posture

Appeal / Full Court Judgment on Appeal From the Federal Magistrates Court

Legal Issues

  1. 1 ['Whether judgment debts arising out of orders under s 588J(1) of the Corporations Law were available to found bankruptcy notices issued against the appellant' 'Whether the debts are assets covered by two deeds of company arrangement' 'Whether administrators acting under those deeds are competent to take bankruptcy proceedings on behalf of the companies']

Ratio Decidendi

The terms of the DOCAs, particularly clause 11, are construed as including all assets and property of the company available at the date of distribution to creditors, not just property existing at the date of the DOCA. The judgment debts ordered by the Supreme Court of Victoria are such property. Accordingly, the administrators were entitled to issue bankruptcy notices based on those debts.

Court Disposition

appeal dismissed

Orders

  • ['The appeal be dismissed.' 'The appellant pay to the respondents their costs of the appeal.']