Liebherr-Australia Pty Ltd v LEQ2 Pty Ltd, in the matter of LEQ2 Pty Ltd [2024] FCA 1484

Liebherr-Australia Pty Ltd v LEQ2 Pty Ltd, in the matter of LEQ2 Pty Ltd [2024] FCA 1484

The orders were made as the failure to register the relevant security interests against the ABN of the trust was due to inadvertence and not of such a nature as to prejudice the position of creditors or shareholders. Competing secured parties had notice and did not demonstrate prejudice. Statutory preconditions for extension under both s 588FM of the Corporations Act and s 293 of the PPSA were satisfied.

Parties
Plaintiff: Liebherr-Australia Pty Ltd; First Defendant: LEQ2 Pty Ltd in its personal capacity and as trustee for LEQ2 Unit Trust; Second Defendant: Toyota Finance Australia Ltd; Third Defendant: Westpac Banking Corporation; Fourth Defendant: Swiss Re International SE; Fifth Defendant: De Lage Landen Pty Limited
Jurisdiction
Australia
Judgment Date
18 December 2024
Procedural Posture
Corporations Application / Application for Extension of Time/final Orders
Outcome
Orders granted as sought, no order as to costs.
Legal Topics
Extension of Time for Registration of Security Interests, Purchase Money Security Interest Priority, Vesting of Unperfected Securities, Competing Security Interests, Relief Under Corporations Act and PPSA
Corporations Law Personal Property Securities Extension of Time for Registration of Security Interests Purchase Money Security Interest Priority Vesting of Unperfected Securities Competing Security Interests Relief Under Corporations Act and PPSA

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Parties

Liebherr-Australia Pty Ltd

Plaintiff

LEQ2 Pty Ltd in its personal capacity and as trustee for LEQ2 Unit Trust

First Defendant

Toyota Finance Australia Ltd

Second Defendant

Westpac Banking Corporation

Third Defendant

Swiss Re International SE

Fourth Defendant

De Lage Landen Pty Limited

Fifth Defendant

Procedural Posture

Corporations Application / Application for Extension of Time/final Orders

Legal Issues

  1. 1 Whether a later time for registration of security interests under s 588FM of the Corporations Act should be fixed
  2. 2 Whether extension of PMSI registration period under s 293 of the PPSA should be granted
  3. 3 Whether the failure to register earlier was due to inadvertence or other sufficient cause

Ratio Decidendi

The orders were made as the failure to register the relevant security interests against the ABN of the trust was due to inadvertence and not of such a nature as to prejudice the position of creditors or shareholders. Competing secured parties had notice and did not demonstrate prejudice. Statutory preconditions for extension under both s 588FM of the Corporations Act and s 293 of the PPSA were satisfied.

Court Disposition

Orders granted as sought, no order as to costs.

Orders

  • 6 November 2024 fixed as time for Plaintiff to lodge specified registrations on the PPSR for Corporations Act purposes.
  • Business days for PPSA s 62(3)(b) extended for specified registrations so they fall within prescribed time period.