Department of Employment and Workplace Relations v Howell, in the matter of Castel Electronics Pty Ltd [2024] FCA 566

Federal Court of Australia

Department of Employment and Workplace Relations v Howell, in the matter of Castel Electronics Pty Ltd [2024] FCA 566 File number(s): NSD 651 of 2022

Judgment of: MCELWAINE J

Date of judgment: 28 May 2024

Catchwords: CORPORATIONS – Personal Property Securities Act – s 340 meaning of circulating asset – whether amounts recovered by receivers and managers comprised circulating assets – application of s 433 of the Corporations Act – whether an account arises from providing services in the ordinary course of a business providing services of that kind – whether services were provided pursuant to a distribution agreement – inventory proceeds and an amount received in satisfaction of an arbitration award and related judgment held to be circulating assets – separate questions answered accordingly

Legislation: Corporations Act 2001 (Cth) ss 9, 433, 556, 560, 561 Evidence Act 1995 (Cth) s 191 Fair Entitlements Guarantee Act 2012 (Cth) ss 3, 31 Personal Property Securities Act 2009 (Cth) ss 10, 340, 341(1B)

Cases cited: Carter Holt Harvey Woodproducts Australia Pty Ltd v Commonwealth [2019] HCA 20; (2019) 268 CLR 524 Castel Electronics Pty Ltd v TCL Air Conditioner (Zhongshan) Co Ltd (No 2) [2012] FCA 1214 Hamersley Iron Pty Ltd v Forge Power Pty Ltd (in liq) (receivers and managers appointed) (2018) 130 ACSR 262 Korda v Silkchime Pty Ltd (receivers and managers appointed) [2010] WASC 155 Mount Bruce Mining Pty Ltd v Wright Prospecting [2015] HCA 37 Re CMI Industrial Pty Ltd (in liq) [2015] QSC 96 Re Universal Distributing Co Ltd (in liq) (1933) 48 CLR 171 Resilient Investment Group Pty Ltd v Barnet and Hodgkinson as Liquidators of Spitfire Corp Ltd (in liq) [2023] NSWCA 118 Reynold Bros (Motors) Pty Ltd v Esanda Ltd (1983) 8 ACLR 422