Clifton v Kerry J Investment Pty Ltd trading as Clenergy [2017] FCA 1379

FEDERAL COURT OF AUSTRALIA

Clifton v Kerry J Investment Pty Ltd trading as Clenergy [2017] FCA 1379 File numbers: SAD 261 of 2014 SAD 275 of 2014 SAD 276 of 2014

Judge: WHITE J

Date of judgment: 24 November 2017

Catchwords: CORPORATIONS – unfair preference claims brought by liquidator of company against creditors under s 588FF of the Corporations Act 2001 (Cth) – whether the company was insolvent within the meaning of s 95A of the Corporations Act and, if so, when – application of principles of insolvency – analysis of solvency of company at different times.

Legislation: Corporations Act 2001 (Cth) ss 9, 95A, 513B, 513C, 588FF Income Tax Assessment Act 1997 (Cth) s 995-1(1) Renewable Energy (Electricity) Act 2000 (Cth) s 30LA Taxation Administration Act 1953 (Cth) of ss 3A, 8AAZA; 255-1(1), 255-10, 255-15, 255-20 of Sch 1 Federal Court Rules 2011 (Cth) rr 5.04(3), 30.01 Renewable Energy (Electricity) Regulations 2001 (Cth)

Cases cited: Australian Securities and Investments Commission v Edwards [2005] NSWSC 831; (2005) 220 ALR 148 Australian Securities and Investments Commission v Plymin [2003] VSC 123; (2003) 175 FLR 124 Bell Group Ltd (in liq) v Westpac Banking Corporation (No 9) [2008] WASC 239; (2008) 39 WAR 1 Bilborough v Federal Commissioner of Taxation [2007] FCA 773, (2007) 162 FCR 160 Chappuis v Filo (1990) 19 NSWLR 490 Commissioner of Taxation v Croft [2016] QSC 190; (2016) 312 FLR 216 Crema (Vic) Pty Ltd v Land Mark Property Developments (Vic) Pty Ltd [2006] VSC 338; (2006) 58 ACSR 631 Deputy Commissioner of Taxation v Broadbeach Properties Pty Ltd [2008] HCA 41; (2008) 237 CLR 473 First Equilibrium Pty Ltd v Bluestone Property Services Pty Ltd (in liq) [2013] FCAFC 108; (2013) 95 ACSR 654 Fitzgerald v Masters (1956) 95 CLR 420 Hall v Poolman [2007] NSWSC 1330; (2007) 65 ACSR 123 Hussain v CSR Building Products Ltd [2016] FCA 392; (2016) 246 FCR 62 M & R Jones Shopfitting Co Pty Ltd (in liq) v The National Bank of Australasia Ltd (1983) 7 ACLR 445 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd [2015] HCA 37; (2015) 256 CLR 104 Noza Holdings Pty Ltd v Commissioner of Taxation [2010] FCA 990 Oswal v Commissioner of Taxation [2015] FCA 1439 Perrine v Carrelo [2017] WASCA 151 Precision Pools Pty Ltd v Commissioner of Taxation (1992) 37 FCR 554 Re Damilock Pty Ltd (in liq); Lewis & Carter as liquidators of Damilock Pty Ltd (in liq) v VI SA Australia Pty Ltd [2008] FCA 1801; (2008) 252 ALR 533 Rexel Electrical Supplies Pty Ltd v Morton (as liquidator of South East Queensland Machinery Manufacturing and Distribution (Mining No 1) (in liq) [2015] QCA 235; (2015) 110 ACSR 341 Sandell v Porter (1966) 115 CLR 666 Smith v Boné [2015] FCA 319; (2015) 104 ACSR 528 Southern Cross Interiors Pty Ltd (in liq) v Deputy Commissioner of Taxation [2001] NSWSC 621; (2001) 53 NSWLR 213 Treloar Constructions Pty Ltd v McMillan [2017] NSWCA 72; (2017) 120 ACSR 130 Trinick (as liquidator of Forgione Family Group Pty Ltd (in liq) v Forgione [2015] FCA 642; (2015) 239 FCR 285 Victoria v Tatts Group Ltd [2016] HCA 5; (2016) 328 ALR 564