Mutton v Living Australia Pty Ltd, in the matter of Living Australia Pty Ltd [2020] FCA 739

FEDERAL COURT OF AUSTRALIA

Mutton v Living Australia Pty Ltd, in the matter of Living Australia Pty Ltd [2020] FCA 739 File number: SAD 28 of 2019

Judge: WHITE J

Date of judgment: 29 May 2020

Catchwords: CORPORATIONS – application pursuant to ss35A(5) and (6) of the Federal Court of Australia Act 1976 (Cth) for review of Registrar's orders that the Plaintiffs be substituted as the applicant for the winding up following the original petitioning creditor's judgment debt being set aside and that the Defendant company be wound up – whether the Plaintiffs were "contingent of prospective creditors" for the purpose of s 465B of the Corporations Act 2001 (Cth) – whether there was a contingent or prospective debt at the time in which the application to wind up was made – whether the Court should exercise its discretion to refuse the winding up of the company – whether the defendant company could establish its solvency. Held: orders of the Registrar granting substitution and refusing leave to oppose the winding up application set aside – Registrar's orders otherwise affirmed.

Legislation: Corporations Act 2001 (Cth) ss 95A, 245P(1), 459A, 459C, 459D, 459F, 459G, 459P, 459Q, 459R, 459S, 465B, 465C, 466, 467 Federal Court of Australia Act 1976 (Cth) s 35A Federal Court (Corporations) Rules 2000 rr 2.9 Supreme Court Act 1986 (VIC) District Court Civil Rules 2006 rr 107, 271-278

Cases cited: 3Bears Childcare Centre Pty Ltd v Deputy Commissioner of Taxation, in the matter of 3Bears Childcare Centre Pty Ltd [2018] FCA 1690 Ace Contractors & Staff Pty Ltd v Westgarth Development Pty Ltd [1999] FCA 728 Alati v Wei Sheung [2000] NSWSC 601; (2000) 34 ACSR 489 Aussie Vic Plant Hire Pty Ltd v Esanda Finance Corporation Limited [2008] HCA 9; (2008) 232 CLR 314 Australian Beverage Distributors Pty Ltd v Evans & Tate Premium Wines Pty Ltd [2006] NSWSC 560; (2006) 2000 FLR 332 Australian Beverage Distributors Pty Ltd v The Redrock Co Pty Ltd [2007] NSWSC 966; (2007) 213 FLR 450 Australian Securities and Investments Commission v Lanepoint Enterprises Pty Ltd (Receivers and Managers Appointed) [2011] HCA 18; (2011) 244 CLR 1 AXF Entertainment Pty Ltd v AXF Group Pty Ltd (No 2) [2019] VSC 753 Bidald Consulting Pty Ltd v Miles Special Builders Pty Ltd [2005] NSWSC 397; (2005) 189 FLR 309 Callegher v Australian Securities and Investments Commission [2007] FCA 482; (2007) 218 FCR 81 Chief Commissioner of State Revenue v Reliance Financial Services Pty Ltd [2006] NSWSC 1017 Community Development Pty Ltd v Engwirda Construction Co (1966) 120 CLR 455 David Grant & Co Pty Limited (Receiver appointed) v Westpac Banking Corporation (1995) 184 CLR 265 Dekkan v Maquarie Leasing Pty Ltd [2008] FCA 1235 Deputy Commissioner of Taxation v BK Ganter Holdings Pty Ltd [2008] FCA 1730 Deputy Commissioner of Taxation v Commercial and General Law (SA) Pty Ltd [2011] FCA 1269; (2011) 198 FCR 417 Deputy Commissioner of Taxation v Complete Liquid Transport Pty Ltd [2010] FCA 1067 Deputy Commissioner of Taxation v Guy Holdings Pty Ltd (1994) 116 FLR 314 Deputy Commissioner of Taxation v Melking Holdings Pty Ltd [2019] FCA 988; (2019) 137 ACSR 411 Deputy Commissioner of Taxation v Revolve Ltd [2012] FCA 555 Deputy Commissioner of Taxation v Rural & General Insurance Broking Pty Ltd [2011] FCA 683; (2011) 84 ACSR 55 Deputy Commissioner of Taxation v Vasiliades [2015] FCA 1190 Deputy Commissioner of Taxation v Visidet Pty Ltd [2005] FCA 830 D.M.K. Building Materials Pty Ltd v Baker Timbers Pty Ltd (1985) 2 NSWLR 711 First Equilibrium Pty Limited v Bluestone Property Services Pty Limited (in liq) [2013] FCAFC 108; (2013) 95 ACSR 654 Foots v Southern Cross Mine Management Pty Ltd [2007] HCA 56; (2007) 234 CLR 52 G & J Gears Australia Pty Ltd v Brobo Group Pty Ltd [2006] FCA 330 Grant Thornton Services (NSW) Pty Limited v St. George Wholesale Distributors Pty Ltd [2008] FCA 1777 Guildford International Group Pty Ltd, in the matter of Aviation 3030 Pty Ltd v Aviation 3030 Pty Ltd [2018] FCA 600 Harris v Caladine (1991) 172 CLR 84 In re William Hockley Ltd [1962] 1 WLR 555 In the matter of Aquaqueen International Pty Ltd [2014] NSWSC 527 In the matter of Erfanian Developments Pty Ltd [2018] VSC 342 Jageev Pty Ltd v Deane (1997) 72 FCR 398 Jarena Pty Ltd v Sholl Nicholson Pty Ltd (1996) 136 ALR 427 Living Australia Pty Ltd v Rans Consulting Group Pty Ltd [2019] SASC 86 Mandarin International Developments Pty Ltd v Growthcorp (Australia) Pty Ltd (1998) 143 FLR 408 Mann v Goldstein [1968] 1 WLR 1091 Martin v Commonwealth Bank of Australia [2001] FCA 87; (2001) 217 ALR 634 Masri Apartments Pty Limited (in liq) v Perpetual Nominees Limited (2004) NSWCA 471; (2004) 23 ACLC 165 Mazukov v University of Tasmania [2004] FCAFC 159 McLellan v Australian Stock Exchange Ltd [2005] FCA 585; (2005) 144 FCR 327 Motor Terms Company Pty Limited v Liberty Insurance Limited (in liq) (1966) 116 CLR 177 Mutton v Living Australia Pty Ltd [2019] FCA 1051 National Australia Bank Ltd v Market Holdings Pty Ltd (in liq) [2001] NSWSC 253; (2001) 161 FLR 1 Owen-Pearse v Lander Land Company Pty Ltd [2018] FCA 2077 Perpetual Nominees Ltd v Masri Apartments Pty Ltd [2004] NSWSC 551; (2004) 49 ACSR 719 Re Elgar Heights Pty Ltd (No 2) (1985) 3 ACLC 480 Re Tomic Industries Pty Ltd [2012] NSWSC 1478 South East Water Ltd v Kitoria Pty Ltd (1996) 21 ACSR 465 Southern Cross Interiors Pty Ltd v Deputy Commissioner of Taxation [2001] NSWSC 621; (2001) 53 NSWLR 213 Tokich Holdings Pty Ltd v Sheraton Constructions (NSW) Pty Ltd (in liq) (2004) NSWSC 527; (2004) 185 FLR 130 TQM Design & Construct Pty Limited v MI Kitchen Design Pty Ltd [2011] NSWSC 800 Treadtel International Pty Ltd v Cocco [2016] NSWCA 360 West International v Ultradrilling Pty Ltd [2008] FCA 1443; (2008) 68 ACSR 108 Willard King Organisation (1978) Pty Ltd v CT Franchises Pty Ltd [2009] NSWSC 97