Clifton v Wuxi Suntech Power Co., Limited, (People's Republic of China) [2016] FCA 1014

FEDERAL COURT OF AUSTRALIA

Clifton v Wuxi Suntech Power Co., Limited, (People's Republic of China) [2016] FCA 1014 File number: SAD 275 of 2014

Judge: BESANKO J

Date of judgment: 23 August 2016

Catchwords: PRACTICE AND PROCEDURE – application for freezing order – where liquidator plaintiffs have a good arguable case to recover payments as unfair preferences – where defendant's only asset in Australia is a debt owed to it by the company in liquidation – whether there is a risk that a prospective judgment will be wholly or partly unsatisfied because the debt might be assigned to a third party – where defendant is a foreign corporation – where asset is a non-trading asset – where insufficient risk of dissipation established – application dismissed.

Legislation: Corporations Act 2001 (Cth) ss 439A, 588FA, 588FE, 588FF Corporations Regulations 2011 (Cth) reg 5.6.67 Federal Court Rules 2011 (Cth) rr 7.32, 7.35, 10.42, 10.43

Cases cited: Cardile and Others v LED Builders Pty Limited (1999) 198 CLR 380 Cherry v Boultbee (1839) 4 My & Cr 442; (1839) 41 ER 171 Deputy Commissioner of Taxation v Hua Wang [2010] FCA 1014; (2010) 273 ALR 194 Finn and Ors v Carelli [2007] NSWSC 261 Frigo v Culhaci [1998] NSWCA 88 Khalifeh v Rahme and Another [2009] NSWSC 1332 Ninemia Maritime Corp v Trave GmbH & Co KG (The Niedersachsen) [1984] 1 All ER 398 Patterson v BTR Engineering (Aust) Ltd and Others (1989) 18 NSWLR 319 Severstal Export GmbH v Bhushan Steel Ltd [2013] NSWCA 102; (2013) 84 NSWLR 141 Keay AF, McPherson's Law of Company Liquidation (3rd ed, Sweet & Maxwell, 2013)