In the Matter of Firbank Arch Pty Ltd (Administrator Appointed (Subject to Deed of Company Arrangement)); Metrobuild Constructions Pty Ltd v Edge, Robert John [1998] FCA 344

In the Matter of Firbank Arch Pty Ltd (Administrator Appointed (Subject to Deed of Company Arrangement)); Metrobuild Constructions Pty Ltd v Edge, Robert John [1998] FCA 344

The balance of convenience did not favour restraining the administrator from paying admitted creditors or suspending the Deed of Company Arrangement. Metrobuild had not shown that its position would be significantly worse after the deed. The application for interlocutory relief was refused as there was no sufficient basis for an order to set aside a fund or otherwise secure Metrobuild's disputed claim; admitted creditors' debts were not disputed and entitled to payment.

Parties
Applicant: Metrobuild Constructions Pty Ltd; Respondent: Robert John Edge
Jurisdiction
Australia
Judgment Date
02 April 1998
Procedural Posture
Application for Interlocutory Relief / Interlocutory Stage; Application for Injunction and Ancillary Orders
Outcome
application for interlocutory relief refused; application dismissed
Legal Topics
Deed of Company Arrangement, Administration of Companies, Injunctive Relief, Admitted and Disputed Creditors, Balance of Convenience, S 447 a Corporations Law
Corporations Law Insolvency Deed of Company Arrangement Administration of Companies Injunctive Relief Admitted and Disputed Creditors Balance of Convenience S 447 a Corporations Law

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Parties

Metrobuild Constructions Pty Ltd

Applicant

Robert John Edge

Respondent

Procedural Posture

Application for Interlocutory Relief / Interlocutory Stage; Application for Injunction and Ancillary Orders

Legal Issues

  1. 1 Whether the administrator should be restrained from making payments to admitted creditors
  2. 2 Whether the Deed of Company Arrangement should be suspended until the applicant's claim is determined
  3. 3 Whether the administrator should pay into court the applicant's claim with interest and costs

Ratio Decidendi

The balance of convenience did not favour restraining the administrator from paying admitted creditors or suspending the Deed of Company Arrangement. Metrobuild had not shown that its position would be significantly worse after the deed. The application for interlocutory relief was refused as there was no sufficient basis for an order to set aside a fund or otherwise secure Metrobuild's disputed claim; admitted creditors' debts were not disputed and entitled to payment.

Court Disposition

application for interlocutory relief refused; application dismissed

Orders

  • Applicant's application for interlocutory relief dismissed
  • Order under s 447A Corporations Law as outlined