Westpac Banking Corporation v Smith [2020] FCA 1360

Federal Court of Australia

Westpac Banking Corporation v Smith [2020] FCA 1360 File number(s): NSD 2173 of 2017

Judgment of: RARES J

Date of judgment: 8 September 2020

Catchwords: BANKRUPTCY AND INSOLVENCY – Application for inquiry into conduct of receivers pursuant to s 423 of the Corporations Act 2001 (Cth) – whether length of engagement by receivers of a hotel consultant in addition to a licencee manager of licenced gaming hotel raised a prima facie case requiring inquiry – where length of receivership extended due to conduct of mortgagor and its director – where mortgagor obtained statutory assessment that significantly reduced mortgagee's and receivers' legal costs and disbursements chargeable against mortgagor under securities – where lack of qualifications for expert giving evidence tendered in support of application for inquiry –whether conduct of receivers liable to attract sanctions or control for what might be broadly described as disciplinary reasons, including lack of diligence – held: inquiry refused

Legislation: Corporations Act 2001 (Cth), ss 420, 423 Evidence Act 1995 (Cth), s 79 Personal Properties Securities Act 2009 (Cth) Legal Profession Act 2004 (NSW) Liquor Act 2007 (NSW)

Cases cited: Belvista Pty Ltd v Murphy (1993) 11 ACSR 628 Hall v Poolman (2009) 75 NSWLR 99 Leslie, in the matter of the Aboriginal Councils and Associations Act 1976, v Hennessy [2001] FCA 371 Northbourne Developments v Reiby Chambers Pty Ltd (1989) 19 NSWLR 434 Oswal v Carson (in their capacity as receivers and managers of Burrup Fertilisers Pty Limited (receivers and managers appointed) (No 3) (2013) 300 ALR 149 Young v Thompson (formerly trustee of the property of Young) (2017) 253 FCR 191