Sheahan, in the matter of B.C.I. Finances Pty Limited (in liq) [2020] FCA 1411

FEDERAL COURT OF AUSTRALIA

Sheahan, in the matter of B.C.I. Finances Pty Limited (in liq) [2020] FCA 1411 File number: SAD 74 of 2020

Judge: CHARLESWORTH J

Date of judgment: 1 October 2020

Catchwords: CORPORATIONS – application for orders under s 90-15(2) of the Insolvency Practice Schedule (Corporations) approving a proposed course of action in the winding up of 13 related companies – where plaintiffs are joint and several liquidators of all of the entities – where plaintiffs have an apparent conflict of duties in their capacities as liquidators of both debtor and creditor companies in respect of claimed intercompany debts – where plaintiffs have obtained an independent opinion as to those debts that should be lodged, admitted or rejected in the winding up of the companies – whether plaintiffs are justified in acting in accordance with the independent opinion – whether the requirement to serve a supporting affidavit on creditors and ASIC should be dispensed with in whole or in part PRACTICE AND PROCEDURE – application for suppression order over the whole of an affidavit – where only some parts of the affidavit are shown on the evidence to be confidential – whether a broad order should be made on the basis that the order may be varied should any person apply to inspect the affidavit – considerations of open justice – plaintiffs afforded a further opportunity to state with more precision how the requirements for a suppression order are fulfilled in relation to that part of the evidence that does not appear to be inherently confidential

Legislation: Corporations Act 2001 (Cth) ss 479, 511, Sch 2 ss 90-15, 90-20 Federal Court of Australia Act 1976 (Cth) ss 20A, 37AE, 37AF, 37AG, 37AI, 37AJ Insolvency Law Reform Act 2016 (Cth) Federal Court (Corporations) Rules 2000 (Cth) rr 1.8, 2.7, 2.8 Federal Court Rules 2011 (Cth) r 2.32 Conveyancing Act 1919 (NSW) Trustee Act 1925 (NSW) s 63