Ace Contractors & Staff Pty Ltd v Westgarth Development Pty Ltd [1999] FCA 728

FEDERAL COURT OF AUSTRALIA

Ace Contractors & Staff Pty Ltd v Westgarth Development Pty Ltd

[1999] FCA 728 CORPORATIONS – insolvency – application to wind up company in insolvency – non-compliance with statutory demand – presumption of insolvency arising therefrom – whether company discharged onus of demonstrating solvency –effect of assertion of solvency – relevance of value of company assets – discretion of Court to decline to order winding up.

Corporations Law, ss 459A, 459C(2) and (3), 459G, 459P, 459Q, 459S(1)(b) and (b) Elite Motor Campers Australia v Leisureport Pty Ltd (1996) 22 ACSR 235 referred to Commissioner of Taxation v Simionato Holdings Pty Ltd (1997) 15 ACLC 477 referred to Commonwealth Bank of Australia v Begonia (1993) 11 ACLC 1075 at 1081 referred to Re Citic Commodity Trading Pty Ltd v JBL Enterprises (WA) Pty Ltd [1998] FCA 232 referred to Leslie v Howship Holdings Pty Ltd (1997) 15 ACLC 459 at 463, 465-467, 471 referred to Rees v Bank of New South Wales (1964) 111 CLR 210 referred to Re Tweeds Garages Ltd [1962] Ch 406 at 410 referred to Melbase Corporation Pty Ltd v Segenhoe Ltd (1995) 13 ACLC 823 at 832 referred to Sandell v Porter (1966) 115 CLR 666 at 671 referred to Taylor v ANZ Banking Group Ltd (1988) 6 ACLC 808 at 812 referred to Hamilhall Pty Ltd v AT Phillips Pty Ltd (1994) 54 FCR 173 referred to Re Presha Engineering (Aust) Pty Ltd (1983) 1 ACLC 675 at 676, 677 referred to Mibor Investments Pty Ltd v Commonwealth Bank of Australia [1994] 2 VR 290 at 293 referred to Aizen v Essendon Travel (Vic)Pty Ltd (1994) 49 FCR 594 referred to Texel Pty Ltd v Commonwealth Bank of Australia [1994] 2 VR 298 at 299 referred to Whelpton v Braams Constructions Pty Ltd (1994) 12 ACLC 881 referred to Kekatos v Holmark Construction Company Pty Ltd (1995) 13 ACLC 1581 at 1582 referred to