Squadron Resources Pty Ltd v Highlake Resources Pty Ltd, in the matter of Highlake Resources Pty Ltd [2018] FCA 1292

Squadron Resources Pty Ltd v Highlake Resources Pty Ltd, in the matter of Highlake Resources Pty Ltd [2018] FCA 1292

The Court was satisfied that the failure to register the security interests earlier was accidental or due to inadvertence, arising from miscommunication or misunderstanding after the Subsidiary GSD was exchanged, and that relief was just and equitable. Although the delay exceeded two years, the PPSR registrations were promptly effected once the omission was discovered, the defendants consented, ASIC and notified secured creditors did not object, identified PMSI and ANZ security interests would not be prejudiced in priority, and no prejudice attributable to the delay was shown. The Court therefore had jurisdiction under s 588FM to fix 26 June 2018 as the later time for s 588FL(2)(b)(iv).

Jurisdiction
Australia
Judgment Date
24 August 2018
Procedural Posture
Application Under S 588 Fm(1) of the Corporations Act 2001 (cth) for an Order Fixing a Later Time for Registration of PPSA Security Interests / Reasons for Orders Made on 31 July 2018 After Final Hearing
Outcome
Relief granted.
Legal Topics
['extension of Time for PPSR Registration' 'ppsa Security Interests' 'inadvertence or Accidental Failure to Register' 'prejudice to Creditors' 'general Security Deed']
['corporations' 'personal Property Securities' 'commercial and Corporations'] ['extension of Time for PPSR Registration' 'ppsa Security Interests' 'inadvertence or Accidental Failure to Register' 'prejudice to Creditors' 'general Security Deed']

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Procedural Posture

Application Under S 588 Fm(1) of the Corporations Act 2001 (cth) for an Order Fixing a Later Time for Registration of PPSA Security Interests / Reasons for Orders Made on 31 July 2018 After Final Hearing

Legal Issues

  1. 1 ["Whether the failure to register the plaintiff's security interests on the PPSR within 20 business days was accidental or due to inadvertence or some other sufficient cause under s 588FM(2)(a)(i) of the Corporations Act 2001 (Cth)." 'Whether it was just and equitable to fix 26 June 2018 as the later time for the purposes of s 588FL(2)(b)(iv) of the Corporations Act 2001 (Cth).' 'Whether the delay in registration prejudiced secured creditors, unsecured creditors or shareholders.']

Ratio Decidendi

The Court was satisfied that the failure to register the security interests earlier was accidental or due to inadvertence, arising from miscommunication or misunderstanding after the Subsidiary GSD was exchanged, and that relief was just and equitable. Although the delay exceeded two years, the PPSR registrations were promptly effected once the omission was discovered, the defendants consented, ASIC and notified secured creditors did not object, identified PMSI and ANZ security interests would not be prejudiced in priority, and no prejudice attributable to the delay was shown. The Court therefore had jurisdiction under s 588FM to fix 26 June 2018 as the later time for s 588FL(2)(b)(iv).

Court Disposition

Relief granted.

Orders

  • ['Pursuant to section 588FM of the Corporations Act 2001 (Cth), 26 June 2018 be fixed as the later time for the purpose of subparagraph 588FL(2)(b)(iv), in respect of any security interests granted by the Defendant in favour of the Plaintiff registrable under the Personal Property Securities Act 2009 (Cth) in...