Badenoch Integrated Logging Pty Ltd v Bryant, in the matter of Gunns Limited (in liq) (receivers and managers appointed) [2021] FCAFC 64

Federal Court of Australia Badenoch Integrated Logging Pty Ltd v Bryant, in the matter of Gunns Limited (in liq) (receivers and managers appointed) [2021] FCAFC 64 Appeal from: Bryant, in the matter of Gunns Limited (in liq) (receivers and managers appointed) v Badenoch Integrated Logging Pty Ltd [2020] FCA 713

File number: SAD 121 of 2020

Judgment of: MIDDLETON, CHARLESWORTH AND JACKSON JJ

Date of judgment: 10 May 2021

Catchwords: CORPORATIONS – voidable transactions – unfair preferences – interpretation of s 588FA of the Corporations Act 2001 (Cth) – whether there was a continuing business relationship in the form of a running account – whether the peak indebtedness rule applies in the context of s 588FA(3) of the Act – meaning of "all transactions" – rule not applied – good faith defence under s 588FG(2) of the Act not made out – where defendant creditor had notice of insolvency – unnecessary to decide threshold question under s 553C of the Act of whether set-off is available in unfair preference claims

Legislation: Bankruptcy Act 1924 (Cth) Bankruptcy Act 1966 (Cth) Corporations Act 1989 (Cth) Corporate Law Reform Act 1992 (Cth) Corporations Act 2001 (Cth), ss 553C, 588FA, 588FC, 588FE, 588FF, 588FG

Cases cited: Allied Concrete Ltd v Meltzer (2015) NZBLC 99-717 Airservices Australia v Ferrier (1996) 185 CLR 483 Carrello v Perrine Architecture Pty Ltd (2016) 112 ACSR 448 Chicago Boot Co Pty Ltd v Davies & McIntosh (as joint and several liquidators of Harris Scarfe Ltd) (2011) 282 ALR 378 Clifton v CSR Building Products Pty Ltd [2011] SASC 103 Cussen (as liq of Akai Pty ltd (in liq)) v Commissioner of Taxation (2003) 51 ACSR 530 Dean Willcocks & Anor v Commissioner of Taxation (2004) 51 ACSR 353 Hathaway Shirt Co Pty Ltd v B Rawe GmbH Co [1989] NSWCA 98 Hosking v Extend N Build Pty Ltd (2018) 357 ALR 795 Hussain v CSR Building Products Ltd [2016] FCA 392 Jetaway Logistics Pty Ltd & Ors v Deputy Commissioner of Taxation (2009) 26 VR 657 M & R Jones Shopfitting Co Pty Ltd (in liq) v The National Bank of Australiasia Ltd (1983) 7 ACLR 445 Olifent v Australian Wine Industries Pty Ltd (1996) 130 FLR 195 Petagna Nominees Pty Ltd & Anor v AE Ledger (1989) 1 ACSR 547 Re Alsafe Security Products Pty Ltd [2016] NSWSC 428 Re Employ (No 96) Pty Ltd (in liq) (2013) 93 ACSR 48 Rees v Bank of New South Wales (1964) 111 CLR 210 Re Weiss; Ex parte White v John Vicars & Co Ltd (1970) ALR 654 Richardson v Commercial Banking Co of Sydney Ltd (1952) 85 CLR 110 Stone v Melrose Cranes & Rigging Pty Ltd (No 2) (2018) ACSR 406 Sutherland (as liquidator of Sydney Appliances Pty Ltd (in liq)) v Eurolinx Pty Ltd (2001) 37 ACSR 477 Sutherland t/as Southern Livestock Nutrition v Lofthouse (2007) 213 FLR 157 Timberworld Ltd v Levin (2015) 3 NZLR 365 VR Dye & Co v Peninsula Hotels Pty Ltd (1999) 3 VR 201 White v ACN 153 152 731 Pty Ltd (2018) 129 ACSR 182 Wily & Anor v Eastern Elevators Pty Ltd (2003) 175 FLR 344 Queensland Bacon v Rees (1967) 115 CLR 266