Trenfield, in the matter of ACN 089 008 668 Pty Ltd (in liq) v JMD Park Pty Ltd [2019] FCA 2154

FEDERAL COURT OF AUSTRALIA

Trenfield, in the matter of ACN 089 008 668 Pty Ltd (in liq) v JMD Park Pty Ltd [2019] FCA 2154 File number: QUD 565 of 2017

Judge: DERRINGTON J

Date of judgment: 20 December 2019

Catchwords: CORPORATIONS – insolvent transactions – unfair preferences – loans repaid and all invoice debts discharged prior to appointment of administrators – good faith defence – where fire had caused obvious and significant disruption to business of company – close involvement between businesses of recipient and company – recipient of payments in possession of cashflow and financial information of company – recipient of payments aware of prioritisation of payments to other creditors – recipient of payments made loans to enable overdue payments to other creditors – whether demand made by recipient for immediate payment of debts – whether recipient or reasonable person in position of recipient had or would have had reasonable grounds for suspecting insolvency

Legislation: Corporations Act 2001 (Cth), s 588FG

Cases cited: Capital Finance Australia Ltd v Tolcher (2007) 164 FCR 83 Cussen v Commissioner of Taxation (2004) 51 ACSR 530 Federal Commissioner of Taxation v Kassem (2012) 205 FCR 156 Hussain v CSR Building Products Ltd (2016) 112 ACSR 507 Queensland Bacon Pty Ltd v Rees (1966) 115 CLR 266 Re Emanuel (No 14) Pty Ltd (in liq); Macks v Blacklaw & Shadforth Pty Ltd (1997) 147 ALR 281 Richardson v Commercial Banking Company of Sydney Ltd (1952) 85 CLR 110 Sheahan v Carrier Air Conditioning Pty Ltd (1997) 189 CLR 407 Sutherland v Eurolinx Pty Ltd (2001) 37 ACSR 477 Walton Construction (Qld) Pty Ltd (in liq) v QHT Investments Pty Ltd [2018] FCA 1986 White v ACN 153 152 731 Pty Ltd (in liq) (2018) 129 ASCR 182