Ray Brooks v NSW Grains Board No.2 [2002] NSWSC 1175

Ray Brooks v NSW Grains Board No.2 [2002] NSWSC 1175

The court has power to extend the time for the plaintiff to lodge a formal proof of claim, and in the present circumstances, the Court should recognise the Second Claim for the purposes of the Scheme, allowing the plaintiff to rely on the whole of the Second Claim despite it being lodged after the lodgement date.

Parties
Plaintiff: Ray Brooks Pty Ltd; First Defendant: NSW Grains Board (Subject to scheme of arrangement); Second Defendant: Murray Campbell Smith (as Scheme Administrator of D1)
Jurisdiction
Australia
Judgment Date
06 December 2002
Procedural Posture
Scheme of Arrangement/equity / Judgment on Appeal Against Rejection of Proof of Debt; Consideration of Extension of Time to Lodge Amended Claim
Outcome
Extension of time to lodge amended proof of claim granted; Second Claim recognised for the purposes of the Scheme; substantive orders to be drafted and settled; costs reserved; proceedings stood over.
Legal Topics
Schemes of Arrangement, Proof of Debt, Variation of Claims, Extension of Time, Corporations Act Procedures
Corporations Law Equity Schemes of Arrangement Proof of Debt Variation of Claims Extension of Time Corporations Act Procedures

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 21 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Ray Brooks Pty Ltd

Plaintiff

NSW Grains Board (Subject to scheme of arrangement)

First Defendant

Murray Campbell Smith (as Scheme Administrator of D1)

Second Defendant

Procedural Posture

Scheme of Arrangement/equity / Judgment on Appeal Against Rejection of Proof of Debt; Consideration of Extension of Time to Lodge Amended Claim

Legal Issues

  1. 1 Whether the administrator had the power to consent to variation of a creditor's claim under the scheme of arrangement
  2. 2 Whether the Court may extend time for lodgement of creditor's claim under the scheme
  3. 3 Whether the amended claim constituted a variation or new claim for the purposes of the relevant Corporations Regulations

Ratio Decidendi

The court has power to extend the time for the plaintiff to lodge a formal proof of claim, and in the present circumstances, the Court should recognise the Second Claim for the purposes of the Scheme, allowing the plaintiff to rely on the whole of the Second Claim despite it being lodged after the lodgement date.

Court Disposition

Extension of time to lodge amended proof of claim granted; Second Claim recognised for the purposes of the Scheme; substantive orders to be drafted and settled; costs reserved; proceedings stood over.

Orders

  • Time for Ray Brooks Pty Ltd to lodge a formal proof of the Second Claim is extended to 18 February 2002 under Court power; Second Claim is to be recognised for Scheme purposes subject to orders to address potential prejudice to creditors.
  • Plaintiff to bring in short minutes of orders; proceedings stood over for further orders and argument as to costs.