One Corporate Trust Services Ltd v MLSP Assets Pty Ltd in its capacity as trustee for the MLSP Assets Trust [2022] FCA 555

One Corporate Trust Services Ltd v MLSP Assets Pty Ltd in its capacity as trustee for the MLSP Assets Trust [2022] FCA 555

The failure to register the security interest against the Trust ABN was inadvertent and did not cause prejudice to creditors, and it is just and equitable to grant the extension. The Court has discretion under s 588FM to fix a later time even after voluntary administration, and the extension is appropriately...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
12 May 2022
Procedural Posture
Corporations and Corporate Insolvency / Application for Extension of Time Under S 588 FM of Corporations Act 2001 (cth)
Outcome
Application granted
Legal Topics
['general Security Deed' 'perfection of Security Interest' 'personal Property Securities Register' 'corporations Act S 588 FL and S 588 Fm' 'registration Requirements for Trust Property']
['corporations Law' 'insolvency Law' 'property Law'] ['general Security Deed' 'perfection of Security Interest' 'personal Property Securities Register' 'corporations Act S 588 FL and S 588 Fm' 'registration Requirements for Trust Property']

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Procedural Posture

Corporations and Corporate Insolvency / Application for Extension of Time Under S 588 FM of Corporations Act 2001 (cth)

Legal Issues

  1. 1 ['Whether the Court should fix a later time for registration of the security interest under s 588FM for purposes of s 588FL(2)(b)(iv)' 'Whether the failure to perfect registration was accidental, inadvertent or caused prejudice' 'Whether it is just and equitable to grant the extension']

Ratio Decidendi

The failure to register the security interest against the Trust ABN was inadvertent and did not cause prejudice to creditors, and it is just and equitable to grant the extension. The Court has discretion under s 588FM to fix a later time even after voluntary administration, and the extension is appropriately tailored with provision for liquidators or administrators to apply for discharge or variation if circumstances change.

Court Disposition

Application granted

Orders

  • ['The time for service of the originating process is abridged to 3 May 2022.' 'Exhibit MS-2 to affidavit of Michael Sutherland is confidential and not to be accessed without further order.' 'Pursuant to s 588FM and for purposes of s 588FL(2)(b)(iv) of the Corporations Act 2001 (Cth), 11.59 pm on 19 April 2022 is...