In the matter of Psyche Holdings Pty Limited [2018] NSWSC 1254

In the matter of Psyche Holdings Pty Limited [2018] NSWSC 1254

The plaintiff's failure to register the security interest referencing the trust's ABN was due to inadvertence and mistake regarding the effect of the ABN registration; there was no evidence of actual prejudice to creditors or shareholders and no competing security interests intervened. The requirements of s 588FM(2)(a)(i) being satisfied, the Court exercised its discretion to fix a later registration time and made orders accordingly, including a Guardian Securities condition to protect unsecured creditors in the event of future insolvency.

Jurisdiction
Australia
Judgment Date
13 August 2018
Procedural Posture
Application Under Corporations Act S 588 FM / Decision on Application for Extension of Time to Perfect Security Interest
Outcome
Orders granted extending time for registration of security interest, with Guardian Securities condition attached.
Legal Topics
['personal Property Securities' 'security Interests' 'registration of Security Interests' 'inadvertence or Mistake in Registration' 'extension of Time for Registration']
['corporations Law' 'equity'] ['personal Property Securities' 'security Interests' 'registration of Security Interests' 'inadvertence or Mistake in Registration' 'extension of Time for Registration']

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Procedural Posture

Application Under Corporations Act S 588 FM / Decision on Application for Extension of Time to Perfect Security Interest

Legal Issues

  1. 1 ['Whether the failure to perfect by registration the security interest was accidental or due to inadvertence' 'Whether the Court should exercise discretion under s 588FM of the Corporations Act to fix a later time for registration']

Ratio Decidendi

The plaintiff's failure to register the security interest referencing the trust's ABN was due to inadvertence and mistake regarding the effect of the ABN registration; there was no evidence of actual prejudice to creditors or shareholders and no competing security interests intervened. The requirements of s 588FM(2)(a)(i) being satisfied, the Court exercised its discretion to fix a later registration time and made orders accordingly, including a Guardian Securities condition to protect unsecured creditors in the event of future insolvency.

Court Disposition

Orders granted extending time for registration of security interest, with Guardian Securities condition attached.

Orders

  • ['Pursuant to section 588FM of the Corporations Act 2001 (Cth), 12 July 2018 is fixed as the time for the plaintiff to lodge Personal Property Securities registration number: 201807120056182 for the purposes of s 588FL(2)(b)(iv) of the Corporations Act.' 'Liberty is reserved to any liquidator, administrator, deed...