QRS Investments Pty Ltd v ACN 635 717 323 Pty Ltd, in the matter of ACN 635 717 323 Pty Ltd [2020] FCA 1032

QRS Investments Pty Ltd v ACN 635 717 323 Pty Ltd, in the matter of ACN 635 717 323 Pty Ltd [2020] FCA 1032

A miscommunication between the plaintiff’s counsel and solicitors led to a late registration of the security interest. This constituted inadvertence for the purposes of s 588FM of the Corporations Act 2001 (Cth), warranting an order to fix a later registration time, especially as there was no prejudice to creditors and the defendants did not object.

Parties
Plaintiff: QRS Investments Pty Ltd ACN 062 652 439; First Defendant: ACN 635 717 323 Pty Ltd ACN 635 717 323; Second Defendant: Strut & Fret Pty Ltd ACN 635 718 937; Third Defendant: The Mechanicals Operating Company Pty Ltd ACN 635 719 747; Fourth Defendant: Kiss or Kill Pty Ltd ACN 635 719 194; Fifth Defendant: Snug & Associates Electrical Goods, Services and Circus Paraphernalia Pty Ltd ACN 636 618 034
Jurisdiction
Australia
Judgment Date
17 July 2020
Procedural Posture
Application for Orders Under the Corporations Act / Judgment and Orders After Hearing of Originating Application
Outcome
Application granted
Legal Topics
Registration of Security Interest, Inadvertence in Registration, Court Discretion Under S 588 FM
Corporations Law Registration of Security Interest Inadvertence in Registration Court Discretion Under S 588 FM

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Parties

QRS Investments Pty Ltd ACN 062 652 439

Plaintiff

ACN 635 717 323 Pty Ltd ACN 635 717 323

First Defendant

Strut & Fret Pty Ltd ACN 635 718 937

Second Defendant

The Mechanicals Operating Company Pty Ltd ACN 635 719 747

Third Defendant

Kiss or Kill Pty Ltd ACN 635 719 194

Fourth Defendant

Snug & Associates Electrical Goods, Services and Circus Paraphernalia Pty Ltd ACN 636 618 034

Fifth Defendant

Procedural Posture

Application for Orders Under the Corporations Act / Judgment and Orders After Hearing of Originating Application

Legal Issues

  1. 1 Whether the delay in registration of the security interest was due to inadvertence or some other sufficient cause within the meaning of s 588FM of the Corporations Act 2001 (Cth)
  2. 2 Whether the Court’s discretion to fix a later registration time should be exercised

Ratio Decidendi

A miscommunication between the plaintiff’s counsel and solicitors led to a late registration of the security interest. This constituted inadvertence for the purposes of s 588FM of the Corporations Act 2001 (Cth), warranting an order to fix a later registration time, especially as there was no prejudice to creditors and the defendants did not object.

Court Disposition

Application granted

Orders

  • The Originating Process be made returnable instanter.
  • The time for service of the Originating Process be abridged to 15 July 2020.