White, in the matter of Mossgreen Pty Ltd (Administrators Appointed) (No 6) [2019] FCA 17

White, in the matter of Mossgreen Pty Ltd (Administrators Appointed) (No 6) [2019] FCA 17

Because no unpaid vendor claims were made within the timeframe fixed by the Court and no trust interest had been established by the procedure the Court selected for determining such claims, the asserted trust claims provided no reason to refuse the s 90-15 direction. The Court controlled the mode by which such claims could be pursued and declined to entertain the unpaid vendors' defensive trust assertions, so the Liquidators were justified in treating the monies as assets of the Company.

Jurisdiction
Australia
Judgment Date
17 January 2019
Procedural Posture
Application for Direction Pursuant to S 90 15 of the Insolvency Practice Schedule (corporations) / Judgment on Liquidators' Application for Direction
Outcome
Direction made; the Liquidators are justified in treating the relevant monies as assets of the Company.
Legal Topics
["liquidators' Directions" 'company Assets' 'unpaid Vendor Trust Claims' 'leave Under S 500(2)' 'insolvency Practice Schedule (corporations) S 90 15']
['corporations' 'insolvency' 'trusts'] ["liquidators' Directions" 'company Assets' 'unpaid Vendor Trust Claims' 'leave Under S 500(2)' 'insolvency Practice Schedule (corporations) S 90 15']

Case Brief

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Procedural Posture

Application for Direction Pursuant to S 90 15 of the Insolvency Practice Schedule (corporations) / Judgment on Liquidators' Application for Direction

Legal Issues

  1. 1 ["Whether the liquidators were justified in treating monies held in the Company's bank accounts as at 21 December 2017 as assets of the Company." 'Whether the liquidators were justified in treating monies received by the Company on or following 21 December 2017 as assets of the Company.' "Whether unpaid vendors could resist the s 90-15 direction by asserting trust interests after the deadline fixed by the Court's orders of 21 May 2018." "Whether trust claims had to be determined within the liquidators' s 90-15 application or by the procedure previously selected by the Court."]

Ratio Decidendi

Because no unpaid vendor claims were made within the timeframe fixed by the Court and no trust interest had been established by the procedure the Court selected for determining such claims, the asserted trust claims provided no reason to refuse the s 90-15 direction. The Court controlled the mode by which such claims could be pursued and declined to entertain the unpaid vendors' defensive trust assertions, so the Liquidators were justified in treating the monies as assets of the Company.

Court Disposition

Direction made; the Liquidators are justified in treating the relevant monies as assets of the Company.

Orders

  • ["The Liquidators of the Second Plaintiff ('Company') are justified in treating and having treated monies held in the Company's Bank Accounts (as defined in Mr White's affidavit sworn 5 March 2018) as at the date of the appointment of Administrators on 21 December 2017 ('Relevant Date') as assets of the Company."...