Kirman v RWE Robinson & Sons Pty Ltd (in liq), in the matter of RWE Robinson and Sons Pty Ltd (in liq) [2019] FCA 372

FEDERAL COURT OF AUSTRALIA

Kirman v RWE Robinson & Sons Pty Ltd (in liq), in the matter of RWE Robinson and Sons Pty Ltd (in liq) [2019] FCA 372 File number: WAD 57 of 2018

Judge: BANKS-SMITH J

Date of judgment: 19 March 2019

Catchwords: CORPORATIONS - insolvency - receivers' application for directions as to distribution of proceeds of realisation - where liquidators also appointed - where s 561 of the Corporations Act 2001 (Cth) applies - where s 561 permits payment to certain priority creditors from property the subject of a circulating security interest - whether payment is to be made by receivers or liquidators - whether receivers justified in making payments - where s 433 of the Corporations Act 2001 (Cth) does not apply CORPORATIONS - whether s 561 excludes claim for equitable salvage lien over property the subject of a circulating security interest

Legislation: Corporations Act 2011 (Cth) ss 424, 430, 431, 433, 555, 556, 560, 561, Parts 5.2, 5.6, 5.9, Schedule 2 cl 70-45 (Insolvency Practice Schedule) Fair Entitlements Guarantee Act 2012 (Cth) Personal Property Securities Act 2009 (Cth) ss 8, 12 Rules of the Supreme Court 1971 (WA) O 51, r 1

Cases cited: ALDI Foods Pty Limited v Shop, Distributive & Allied Employees Association [2017] HCA 53 Bray v Dye [2009] VSC 113 Coad v Wellness Pursuit Pty Ltd (in liq) [2009] WASCA 68; (2009) 40 WAR 53 Commonwealth v Byrnes (in their capacity as joint and several Recs and Mgrs of Amerind Pty Ltd (recs and mgrs apptd) (in liq)) [2018] VSCA 41; (2018) 54 VR 230 Cook (Liquidator), in the matter of Italiano Family Fruit Company Pty Ltd (in liq) v Italiano Family Fruit Company Pty Ltd (in liq) [2010] FCA 1355; (2010) 190 FCR 474 Hewett v Court [1983] HCA 7; (1983) 149 CLR 639 Jones (Liquidator) v Matrix Partners Pty Ltd, in the matter of Killarnee Civil & Concrete Contractors Pty Ltd (in liq) [2018] FCAFC 40 McEvoy v Incat Tasmania Pty Ltd [2003] FCA 810; (2003) 130 FCR 503 Morgan, in the matter of Brighton Hall Securities Pty Ltd (in liq) [2013] FCA 970 Project Blue Sky Inc v Australian Broadcasting Authority [1998] HCA 28; (1998) 194 CLR 355 Re Amerind, Carter Holt Harvey Woodproducts Australia Pty Ltd v Commonwealth of Australia [2018] HCATrans 156 Re Great Southern Ltd (recs and mgrs apptd) (in liq); Ex parte Thackray [2012] WASC 59; (2012) 260 FLR 362 Re Universal Distributing Co Ltd (in liq) (1933) 48 CLR 171 Saker, in the Matter of Great Southern Ltd [2014] FCA 771 SAS Trustee Corporation v Miles [2018] HCA 55 Stein v Saywell [1969] HCA 66; (1969) 121 CLR 529 Stewart v Atco Controls Pty Ltd (in liq) [2014] HCA 15; (2014) 252 CLR 307 SZTAL v Minister for Immigration and Border Protection [2017] HCA 34 Taylor v The Owners - Strata Plan No 11564 [2014] HCA 9; (2014) 253 CLR 531 Westminster Corporation v Haste [1950] Ch 442 White, in the matter of Mossgreen Pty Ltd (Administrators Appointed) v Robertson [2018] FCAFC 63