Canstruct Pty Ltd v Project Sea Dragon Pty Ltd (Subject to a Deed of Company Arrangement) (No 5) [2024] FCA 479

Federal Court of Australia

Canstruct Pty Ltd v Project Sea Dragon Pty Ltd (Subject to a Deed of Company Arrangement) (No 5) [2024] FCA 479 File number(s): QUD 124 of 2023

Judgment of: COLLIER J

Date of judgment: 9 May 2024

Catchwords: CORPORATIONS – voluntary administration – deed of company arrangement – application to continue stay of orders terminating deed of company arrangement and ordering company to enter winding up in insolvency – Federal Court Rules 2011 (Cth) r 36.08– whether Court has power to order stay of winding up in insolvency – principles relevant to ordering stay – rational prospect of success – arguable points – balance of convenience – security for costs

Legislation: Bankruptcy Act 1966 (Cth) ss 37, 52 Corporations Act 2001 (Cth) ss 447A 445D, 513A, 513C, 588G, 588M, 588V, 588W, 1335, Sch 2 Federal Court of Australia Act 1976 (Cth) ss 23, 56 Federal Court Rules 2011 (Cth) r 19.01 Companies Act 1961 (Vic) s 231A

Cases cited: Ample Source International v Bonython Metals Group (No.7) [2012] FCA 137 ASE24 v Minister for Immigration, Citizenship and Multicultural Affairs [2024] FCA 173 Austral Brick v Falgat Constructions (1990) 21 NSWLR 389 Australian Nursing Federation; Ex parte State of Victoria (1993) 112 ALR 177; [1993] HCA 8 Australian Securities and Investment Commission (ASIC) v Aviation 3030 Pty Ltd (No 2) [2019] FCA 391 Bell Wholesale Co Ltd v Gates Export Corporation (1984) 2 FCR 1; [1984] FCA 34 Brinds Ltd v Offshore Oil N.L. [1986] VR 635 Burns v AMP Finance Ltd [2005] FCA 761 Canstruct Pty Ltd v Project Sea Dragon Pty Ltd (Subject to a Deed of Company Arrangement) (No 4) [2024] FCA 112 Citrus Queensland Pty Ltd v Sunstate Orchards Pty Ltd [2008] FCA 1867 Commissioner of Taxation (Cth) v Vasiliades (2016) 344 ALR 558; [2016] FCAFC 170 Cook's Construction Pty Ltd v Stork Food Systems Australasia Pty Ltd [2008] 2 Qd R 453; [2008] QCA 322 Deputy Commissioner of Taxation v Ansett Resources (2010) 79 ACSR 347; [2010] FCA 833 Endresz v ASIC [2014] FCA 1139 Equity Access Ltd v Westpac Banking Corporation [1989] FCA 361 Fuchs Lubricants (Australasia) Pty Ltd v Quaker Chemical (Australasia) Pty Ltd (No 2) [2021] FCAFC 114 In the matter of K-Bek Motors Pty Ltd [2017] NSWSC 1838 Krextile Holdings Pty Ltd v Widdows [1974] VR 689 Lehman Brothers Holdings Inc v City of Swan (2010) 240 CLR 509 McVeigh v Linen House (2000) 1 VR 31 Melbourne City Investments Pty Ltd v Treasury Wine Estates Limited [2016] FCA 787 Molit (No 55) Pty Ltd v Lam Soon Australia Pty Ltd [1996] 70 FCR 34 Ng v Van Der Veldt [2010] FCA 89 Nolten v Groeneveld Australia Pty Ltd [2011] FCA 1494 Re Gye and Perkes Ex Parte Mcintyre [1989] FCA 398 Scope Data Systems v Bdo Nelson Parkhill [2003] NSWSC 137 Tatlers.com.au Pty Limited v Davis [2006] NSWSC 1055 The Owners – Strata Plan No.20,347 v Saha [2021] FCA 961 Viagogo AG v Australian Competition and Consumer Commission [2021] FCA 175 Walton v Gardiner [1989] HCA 46; (1989) 168 CLR 23