24 Nov 2008
B MCCULLOUGH AND ANOR V BASE CONTROL LIMITED (IN LIQUIDATION) HC AK CIV 2008-404-3375
- Citation
- openlaw-309198e2_8a02_405c_8d43_99258ef6e00b.pdf
- Court
- High Court
Set-off under s 310 was available: there was sufficient mutuality because the appellants incurred personal liability as guarantors; their payment to the bank gave rise to a quantifiable subrogated claim which could be taken into account for set-off despite payment occurring after liquidation (authorities including Day and Stein); s 310(2)/(3) did not apply because the payment/subrogation was not a transaction or assignment within the specified/restricted periods that would attract the preference test; accounting reclassification could not alter the legal obligations shown by the loan and guar…