Von Arx v Todae Solar Pty Ltd, in the matter of Todae Solar Pty Ltd (Administrators Appointed) [2020] FCA 1071

Von Arx v Todae Solar Pty Ltd, in the matter of Todae Solar Pty Ltd (Administrators Appointed) [2020] FCA 1071

The Court found the plaintiffs' failure to register the security interest correctly and in time was due to accident and inadvertence within s 588FM(2)(a)(i) and that granting an extension would not prejudice creditors or shareholders, as provisions for notification and liberty to apply protected their interests.

Jurisdiction
Australia
Judgment Date
20 July 2020
Procedural Posture
Corporations Application / Judgment Granting Orders
Outcome
Application granted
Legal Topics
['registration of Security Interests' 'extension of Time for Registration' 'priority of Security Interests' 'inadvertent Failure to Register' 'notification to Creditors']
['corporations Law' 'insolvency Law'] ['registration of Security Interests' 'extension of Time for Registration' 'priority of Security Interests' 'inadvertent Failure to Register' 'notification to Creditors']

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Procedural Posture

Corporations Application / Judgment Granting Orders

Legal Issues

  1. 1 ['Whether the Court should fix a later time for registration of a security interest on the PPSR due to inadvertent delay' 'Whether the failure to register earlier was accidental or due to inadvertence within s 588FM(2)(a)(i) of the Corporations Act' 'Whether orders sought prejudice the position of creditors or shareholders']

Ratio Decidendi

The Court found the plaintiffs' failure to register the security interest correctly and in time was due to accident and inadvertence within s 588FM(2)(a)(i) and that granting an extension would not prejudice creditors or shareholders, as provisions for notification and liberty to apply protected their interests.

Court Disposition

Application granted

Orders

  • ['Leave granted to proceed against first defendant under s 440D(2) of Corporations Act 2001 (Cth)' 'Service requirement of originating process dispensed with under r 1.3, r 2.7 of Federal Court (Corporations) Rules 2011 (Cth)' '22 June 2020 fixed as time for registration on PPSR for PPSR registration number...