Bryant, in the matter of Gunns Limited (in liq) (receivers and managers appointed) v Bluewood Industries Pty Ltd [2020] FCA 714

FEDERAL COURT OF AUSTRALIA

Bryant, in the matter of Gunns Limited (in liq) (receivers and managers appointed) v Bluewood Industries Pty Ltd [2020] FCA 714 File number: WAD 540 of 2015

Judge: DAVIES J

Date of judgment: 27 May 2020

Catchwords: CORPORATIONS – voidable transactions – unfair preferences under s 588FA of the Corporations Act 2001 (Cth) – peak indebtedness rule applied – good faith defence under s 588FG(2) of the Corporations Act 2001 (Cth) not made out – where defendant creditor claims set-off under s 553C of the Corporations Act 2001 (Cth) – defendant had notice of insolvency – unnecessary to decide threshold question of whether set-off available in unfair preference claims

Legislation: Companies Act 1993 (NZ), s 292(4B) Corporations Act 2001 (Cth), Pt 5.7B, ss 436A, 439A, 439C, 553C, 588FA, 588FC, 588FE, 588FG(2), 588FF

Cases cited: Airservices Australia v Ferrier [1996] HCA 54; 185 CLR 483 Australian Securities Commission v Marlborough Gold Mines Ltd (1993) 177 CLR 485 at 492 Beveridge v Whitton [2001] NSWSC 6 Bryant (liquidator) v LV Dohnt & Co Pty Ltd, in the matter of Gunns Limited (in liquidation) (receivers and managers appointed) [2018] FCA 238 Bryant, in the matter of Gunns Limited (in liq) (receivers and managers appointed) v Badenoch Integrated Logging Pty Ltd [2020] FCA 713 Bryant, in the matter of Gunns Limited (in liq) (receivers and managers appointed) v Edenborn Pty Ltd [2020] FCA 715 Buzzle Operations Pty Ltd (in liq) v Apple Computer Australia [2011] NSWCA 109; (2011) 81 NSWLR 47 Calzaturuficio Zenith Pty Ltd (in liq) v NSW Leather & Trading Co Pty Ltd; Victorian Leather Co Pty Ltd [1970] VR 605 Clifton (as liquidator of Adelaide Fibrous Plasterboard Linings Pty Ltd (in liq)) & Anor v CSR Building Products Pty Ltd [2011] SASC 103 CSR Ltd trading as the Readymix Group v Starkey (as liquidator) of Allan Fitzgerald Pty Ltd (in liq) (1994) 14 ACSR 321 Cussen (as liquidator of Akie Pty Ltd) v Commissioner of Taxation [2004] NSWCA 383 Federal Commissioner of Taxation v Kassem [2012] FCAFC 124; 205 FCR 156 G and M Aldridge Pty Ltd v Walsh [2000] HCA 27; 203 CLR 662 Harkness v Commonwealth Bank of Australia Ltd (1993) 32 NSWLR 543 Hussain v CSR Building Products Ltd [2016] FCA 392; 246 FCR 62 In the matter of Employ (No 96) Pty Limited (in liquidation) [2013] NSWSC 61 Jetaway Logistics Pty Ltd v Deputy Commissioner of Taxation [2009] VSCA 319; 26 VR 657 McKern v Minister Administering the Mining Act 1978 (WA) [2010] VSCA 140; 28 VR 1 Olifent v Australian Wine Industries Pty Ltd (1996) 130 FLR 195 Petagna Nominees Pty Ltd v A E Ledger (1989) 1 ACSR 547 Queensland Bacon Pty Ltd v Rees [1966] HCA 21; (1966) 115 CLR 266 Re a Debtor [1927] 1 Ch 410 Re Buchanan Enterprises Pty Ltd (No 2) (1982) 7 ACLR 407 Re Clements; Ex parte Trustee; Goldsbrough Mort & Co Ltd (Respondent) (1931) 7 ABC 255 Re Grezzana; Painter v Charles Whiting & Chambers Ltd (1932) 4 ABC 203 Re Parker (1997) 80 FCR 1 Re Smith; Ex parte Trustee; J Bird Pty Ltd and Tully (Respondents) (1933) 6 ABC 49 Re Weiss; Ex parte White v John Vicars & Co Ltd [1970] ALR 654 Rees v Bank of New South Wales [1964] HCA 47; 111 CLR 210 Richardson v Commercial Banking Co of Sydney Ltd [1952] HCA 8; 85 CLR 110 Sheahan v Fabienne Pty Ltd [1999] SASC 335 Southern Cross Interiors Pty Ltd & Anor v Deputy Commissioner of Taxation & Ors [2001] NSWSC 621; 53 NSWLR 213 Sutherland v Lofthouse [2007] VSCA 197; 214 FLR 157 Sydney Appliances Pty Ltd (in liq) v Eurolinx Pty Ltd [2001] NSWSC 230 Timberworld v Levin [2015] 3 NZLR 365 VR Dye & Co (a firm) v Peninsula Hotels Pty Ltd (in liquidation) [1999] 3 VR 201