Sentinel Orange Homemaker Pty Ltd v Bailey, in the matter of Davis Investment Group Holdings Pty Ltd (in liq) (No 2) [2022] FCA 1200

Federal Court of Australia

Sentinel Orange Homemaker Pty Ltd v Bailey, in the matter of Davis Investment Group Holdings Pty Ltd (in liq) (No 2) [2022] FCA 1200 File number(s): NSD 954 of 2021

Judgment of: STEWART J

Date of judgment: 7 October 2022

Catchwords: CORPORATIONS – external administration – liquidator rejected proof of debt – application under s 90-15(1) of Insolvency Practice Schedule (Corporations) – whether liability claimed in proof of debt is liability of the company in liquidation REAL PROPERTY – market value of real property – comparison method – sales of comparable properties – whether properties are comparable – role of the prior sale of the subject property in determining value – whether unaccepted offer to purchase is evidence of market value – whether COVID-19 pandemic caused the market value of the subject property to decrease

Legislation: Corporations Act 2001 (Cth), s 553, Sch 2 s 90-15(1) Corporations Regulations 2001 (Cth) reg 5.6.49

Cases cited: 5G Developments Pty Ltd (in liq) v Massie, in the matter of 5G Developments Pty Ltd (in liq) [2021] FCA 791 Baiyai Pty Ltd v Guy [2009] NSWCA 65 Brewarrana Pty Ltd v Commissioner of Highways (No 2) (1973) 6 SASR 541 Castle Constructions Pty Ltd v Fekala Pty Ltd [2006] NSWCA 133; 65 NSWLR 648 Commissioner of Taxation v Miley [2017] FCA 1396; 106 ATR 779 Commonwealth v Arklay ([952] HCA 76; 87 CLR 159 Cordelia Holdings Pty Ltd v Newkey Investments Pty Ltd [2004] FCAFC 48 Crawley v Short [2009] NSWCA 410; 262 ALR 654 Duffy v Minister for Planning [2003] WASCA 294; 129 LGERA 271 Expectation Pty Ltd v PRD Realty Pty Ltd [2004] FCAFC 189; 140 FCR 17 Goold v Commonwealth [1993] FCA 210; 42 FCR 51 Inez Investments Pty Ltd v Dodd (1979) 26 The Valuer 501 Marsland v Gamble [2002] WASC 213 Maurici v State Revenue [2003] HCA 8; 212 CLR 111 McCallum, in the Matter of Re Holdco Pty Ltd (Administrators Appointed) (No 2) [2021] FCA 377; 391 ALR 418 McDonald v Deputy Federal Commission of Land Tax (NSW) [1915] HCA 15; 20 CLR 231 McKay v Commissioner of Main Roads [2013] WASCA 135 MMAL Rentals Pty Ltd v Bruning [2004] NSWCA 451; 63 NSWLR 167 Penhall v Valuer-General (NSW) (1976) 1 NSWLR 628 Re Azmac Pty Ltd (in liq) [2020] NSWSC 204; 146 ACSR 113 Re Jay-O-Bees Pty Ltd (in liq) [2004] NSWSC 818; 50 ASCR 565 Re Young in his capacity as liquidator of Great Wall Resources Pty Ltd (in liq); Capocchiano v Young [2013] NSWSC 879 Sands Contracting Pty Ltd v Cant [2021] FCA 638 Spencer v Commonwealth [1907] HCA 82; 5 CLR 418 Upside Property Group Ltd v Tekin [2016] NSWSC 1260; 18 BPR 36,191