Citadel Financial Corporation Pty Ltd (Administrator Appointed) v Action Scaffolding & Rigging Pty Limited (in liq) [2019] FCAFC 145

FEDERAL COURT OF AUSTRALIA

Citadel Financial Corporation Pty Ltd (Administrator Appointed) v Action Scaffolding & Rigging Pty Limited (in liq) [2019] FCAFC 145 Appeal from: Action Scaffolding & Rigging Pty Limited (in liq) v Citadel Financial Corporation Pty Ltd, in the matter of Action Scaffolding& Rigging Pty Limited (in liq) [2019] FCA 327

File number: NSD 510 of 2019

Judges: BESANKO, COLVIN AND STEWART JJ

Date of judgment: 27 August 2019

Catchwords: BANKRUPTCY AND INSOLVENCY - appeal from decision of primary judge declaring that the appellant did not enter into possession or assume control validly under the terms of a security interest - whether primary judge was correct to refuse the appellant's application for leave to re-open - whether primary judge was correct in failing to find that the appellant paid the relevant debt on the basis that there was an insufficiency of evidence - where appellant did not challenge the factual findings of the primary judge but challenged the inferences drawn from those findings - whether appellant could demonstrate that it had paid the respondent's debt and was subrogated to the rights under the charge - where payment of the debt was a matter capable of ready proof - where the appellant did not discharge the burden of proof - where findings of primary judge reasonably open - whether primary judge was correct to find that there was no valid assignment of the charge - where no separate basis for assignment other than to aid the right of subrogation - appeal dismissed with costs

Legislation: Corporations Act 2001 (Cth) s 418A Federal Court of Australia Act 1976 (Cth) s 24(1E)

Cases cited: Australian Securities and Investments Commission v Hellicar [2012] HCA 17; (2012) 247 CLR 345 Briginshaw v Briginshaw [1938] HCA 34; (1938) 60 CLR 336 Dincel Constructions Systems Pty Ltd v AFS Systems Pty Ltd [2018] FCAFC 157 House v The King [1936] HCA 40; (1936) 55 CLR 499 Jones v Dunkel [1959] HCA 8; (1959) 101 CLR 298 Lowbeer v De Varda [2018] FCAFC 115 Olympic Holdings Pty Ltd v Windslow Corporation Pty Ltd (in liq) [2008] WASCA 80; (2008) 36 WAR 342 Robinson Helicopter Company Incorporated v McDermott [2016] HCA 22 Wentworth v Rogers [1984] 2 NSWLR 422