ACN 153 364 491 Ltd (in liq) v GP No 1 Pty Ltd (in liq), in the matter of GP No 1 Pty Ltd (in liq) (No 3) [2020] FCA 694

FEDERAL COURT OF AUSTRALIA

ACN 153 364 491 Ltd (in liq) v GP No 1 Pty Ltd (in liq), in the matter of GP No 1 Pty Ltd (in liq) (No 3) [2020] FCA 694 File number: SAD 133 of 2018

Judge: CHARLESWORTH J

Date of judgment: 22 May 2020

Catchwords: CORPORATIONS – application for inquiry into administration of company in liquidation – where applicant claims to be a secured creditor of the company – where liquidator asserts equitable charge over company property in accordance with the principle stated in In re Universal Distributing Company Limited (In Liquidation) (1933) 48 CLR 171 – where applicant challenges quantum of the liquidator's claim – where applicant's claim against secured property subject to a higher ranking priority in the Australian Taxation Office in accordance with s 561 and s 556(1)(e) of the Corporations Act 2001 (Cth) - where liquidator has neither accepted, reduced nor accepted proof of debt lodged by Australian Taxation Office – whether there should be an inquiry into the liquidator's omission to reduce that debt– whether there should be an inquiry into the liquidator's equiatable charge - consideration of the relevance of the lack of commercial utility in the proposed inquiry – consideration of the strength of allegations that the liquidator has not administered the company's affairs in accordance with the law – consideration of the relevance of the circumstance that the applicant's debt and security are disputed – consideration of the extent to which the applicant may avail itself of alternate remedies to vindicate its private rights – application dismissed

Legislation: Corporations Act 2001 (Cth) ss 90.10, 536, 553AB, 556, 561, Sch 2, Div 6 Superannuation Guarantee (Administration) Act 1992 (Cth) ss 17, 19, 31, 32, 36, 42 Taxation Administration Act 1953 (Cth) Corporations Regulations 2001 (Cth) reg 5.6.51