McCann, in the matter of Walton Construction (Qld) Pty Ltd (In Liq) v QHT Investments Pty Ltd [2016] FCA 1092

McCann, in the matter of Walton Construction (Qld) Pty Ltd (In Liq) v QHT Investments Pty Ltd [2016] FCA 1092

Although the applicants established a good arguable case for relief notwithstanding the respondent's s 451C arguments, the freezing order was refused because the limited undertaking as to damages was not acceptable and the applicants failed to prove a real risk of dissipation or that the respondent was unable or would be unable to meet a prospective judgment debt.

Jurisdiction
Australia
Judgment Date
02 September 2016
Procedural Posture
Application for Freezing Order / Interlocutory Application
Outcome
Application dismissed with costs.
Legal Topics
['freezing Order' 'voidable Preference' 'undertaking as to Damages' 'risk of Dissipation' 'effect of Things Done During Administration']
['practice and Procedure' 'corporations and Corporate Insolvency'] ['freezing Order' 'voidable Preference' 'undertaking as to Damages' 'risk of Dissipation' 'effect of Things Done During Administration']

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Procedural Posture

Application for Freezing Order / Interlocutory Application

Legal Issues

  1. 1 ['Whether the applicants had a good arguable case that the Deed of Assignment was a voidable transaction or voidable preference.' 'Whether s 451C of the Corporations Act 2001 (Cth) prevented the applicants from attacking the transaction or obtaining relief under s 588FF(1).' 'Whether the undertaking as to damages proffered by the liquidators was sufficient.' 'Whether there was a danger or real risk that a prospective judgment would be unsatisfied because assets would be dissipated or the respondent could not meet a judgment debt.']

Ratio Decidendi

Although the applicants established a good arguable case for relief notwithstanding the respondent's s 451C arguments, the freezing order was refused because the limited undertaking as to damages was not acceptable and the applicants failed to prove a real risk of dissipation or that the respondent was unable or would be unable to meet a prospective judgment debt.

Court Disposition

Application dismissed with costs.

Orders

  • ['The application be dismissed.' "The applicants pay the respondent's costs."]