Elimatta Pty Ltd v NT Bullion Pty Ltd, in the matter of NT Bullion Pty Ltd [2021] FCA 1416

Elimatta Pty Ltd v NT Bullion Pty Ltd, in the matter of NT Bullion Pty Ltd [2021] FCA 1416

The Court was satisfied that the plaintiffs' failure to register the security interests earlier was accidental or due to inadvertence: there was no evidence the failure was deliberate or conscious, it was more likely than not due to ignorance, oversight or incompetence, and the plaintiffs moved expeditiously after becoming aware on 30 September 2021 that their security interests had not been perfected. That ground under s 588FM(2)(a)(i) justified fixing the later registration times, with a Guardian Securities condition.

Jurisdiction
Australia
Judgment Date
08 November 2021
Procedural Posture
Application Under S 588 FM of the Corporations Act 2001 (cth) to Fix a Later Time for the Purposes of S 588 Fl(2)(b)(iv) / Final Hearing; Final Relief Granted
Outcome
Final relief granted.
Legal Topics
['ppsa Security Interests' 'ppsr Registration' 'extension of Time Under S 588 Fm' 'vesting Under S 588 Fl' 'guardian Securities Condition']
['commercial and Corporations' 'corporations and Corporate Insolvency'] ['ppsa Security Interests' 'ppsr Registration' 'extension of Time Under S 588 Fm' 'vesting Under S 588 Fl' 'guardian Securities Condition']

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Procedural Posture

Application Under S 588 FM of the Corporations Act 2001 (cth) to Fix a Later Time for the Purposes of S 588 Fl(2)(b)(iv) / Final Hearing; Final Relief Granted

Legal Issues

  1. 1 ['Whether the Court should fix 1 October 2021 and 8 October 2021 as later times for registration on the PPSR for the purposes of s 588FL(2)(b)(iv) of the Corporations Act 2001 (Cth).' 'Whether the failure to register the collateral earlier was accidental or due to inadvertence within s 588FM(2)(a)(i).' 'Whether relief should be granted subject to a condition reserving liberty to any liquidator, administrator or deed administrator appointed within six months to apply to discharge or vary the order.']

Ratio Decidendi

The Court was satisfied that the plaintiffs' failure to register the security interests earlier was accidental or due to inadvertence: there was no evidence the failure was deliberate or conscious, it was more likely than not due to ignorance, oversight or incompetence, and the plaintiffs moved expeditiously after becoming aware on 30 September 2021 that their security interests had not been perfected. That ground under s 588FM(2)(a)(i) justified fixing the later registration times, with a Guardian Securities condition.

Court Disposition

Final relief granted.

Orders

  • ['Pursuant to s 588FM, and for the purposes of s 588FL(2)(b)(iv) of the Corporations Act 2001 (Cth), 1 October 2021 and 8 October 2021 are fixed as the time for the plaintiff to register on the PPSR, PPSR Registration number: 202110010048482 (First Registration) and 202110080045429 (Second Registration),...