Beattie v Gray, in the matter of Control Rail Pty Limited (in liq) (No 2) [2019] FCA 433

FEDERAL COURT OF AUSTRALIA

Beattie v Gray, in the matter of Control Rail Pty Limited (in liq) (No 2) [2019] FCA 433 File number(s): NSD 119 of 2018

Judge(s): FARRELL J

Date of judgment: 2 April 2019

Catchwords: BANKRUPTCY AND INSOLVENCY – application for summary judgment – liquidator seeks declaration under s 588G and compensation under s 588M of the Corporations Act 2001 (Cth) from the former sole director of the Company for insolvent trading – where defendant did not appear – where the Company did not keep adequate financial records – where liquidator relied on presumption of insolvency in s 588E of the Corporations Act – whether the Company was insolvent during the period in which the debts were incurred – whether a reasonable person in the defendant's position would have grounds for suspecting the Company was insolvent – application granted

Legislation: Corporations Act 2001 (Cth) ss 9, 91, 95A, 286, 475, 513A, 530A, 530C, 588E, 588G, 588M, Federal Court of Australia Act 1976 (Cth) ss 31A, 51A

Cases cited: Australian Securities and Investments Commission v Edwards [2005] NSWSC 831; 220 ALR 148 Beattie v Gray, in the matter of Control Rail Pty Limited (in liq) [2018] FCA 1524 British American Tobacco Australasia Limited v Taleb (No 3) [2013] FCA 80 Deputy Commissioner of Taxation v Batchelor [2017] FCA 950 Fisher v Divine Homes Pty Ltd [2011] NSWSC 8 Hutchinson v Comcare (No 2) [2018] FCA 1179 Jefferson Ford Pty Limited v Ford Motor Company of Australia Limited [2008] FCAFC 60; 167 FCR 372