Bluewaters Power 1 Pty Ltd v Donnelly, in the matter of Griffin Coal Mining Company Pty Ltd [2024] FCA 596

FEDERAL COURT OF AUSTRALIA

Bluewaters Power 1 Pty Ltd v Donnelly, in the matter of Griffin Coal Mining Company Pty Ltd [2024] FCA 596 File number: WAD 228 of 2023

Judgment of: FEUTRILL J

Date of judgment: 7 June 2024

Catchwords: CORPORATIONS – originating application under s 423 of the Corporations Act 2001 (Cth) for orders for an inquiry into alleged misconduct of receivers and managers of property of company – plaintiffs parties to security instruments – security instruments obliged receivers to perform company's obligations under coal supply agreements with plaintiffs – complaint that receivers improperly encouraged liquidators to disclaim coal supply agreement under s 568 of the Act – whether complaint raised sufficient basis for ordering an inquiry - whether inquiry should be ordered in the exercise of the Court's discretion

Legislation: Corporations Act 2001 (Cth) ss 9, 416, 417, 418, 418(1)(d), 418A, 419, 419A, 420, 420(1), 420B, 420C(1)(a), 420C(3), 421, 421A, 422, 422A, 422B, 422C, 422D, 423, 423(1), 423(1)(a), 423(1)(b), 424, 426, 427, 428, 429, 429A, 430, 430A, 431, 432, 434, 434A–434H, 434J–434M, 471B, 471C. 477(2)(c), 491, 512, 568, 568(1), 568(1)(f), 568(1A), 568B, 568C(3), 568D(1), 568D(2), 568E, 568F; Sch 2, Ptt 2, 5.2, 5.4-5.9; ss 45-1(1)-(5), 90-15 Federal Court of Australia Act 1976 (Cth) ss 23, 57 Electricity Industry (Wholesale Electricity Market) Regulations 2004 (WA) s 6(2)

Cases cited: Airlines Airspares Ltd v Handley Page Ltd [1970] Ch 193 Australian Securities and Investments Commission v Edge [2007] VSC 170; (2007) 211 FLR 137 Atkins v Mercantile Credits Ltd (1985) 10 ACLR 153 Australian Securities and Investments Commission v Dunner [2013] FCA 872; (2013) 303 ALR 98 Australian Securities and Investments Commission v Wily [2019] NSWSC 521; (2019) 137 ACSR 1 Bank of New South Wales v Federal Commissioner of Taxation [1979] HCA 64; (1979) 145 CLR 438 Bank of New Zealand v Essington Developments Pty Ltd (1991) 5 ACSR 86 Barns v Queensland National Bank Ltd [1906] HCA 26; (1906) 3 CLR 925 BL & GY International Co Ltd v Hypec Electronics Pty Ltd [2010] NSWSC 959; (2010) 79 ACSR 558 Carey v Korda [2012] WASCA 228; (2012) 45 WAR 181 CIP Group Pty Ltd v Watters in his capacity as receiver and manager of GGPG Pty Ltd [2023] FCA 329 CIP Group Pty Ltd v Watters in his capacity as receiver and manager of GGPG Pty Ltd [2024] FCAFC 5 Crawford v Australia & New Zealand Banking Group Ltd (1994) 14 ACSR 310 Downsview Nominees Ltd v First City Corporation Ltd [1993] AC 295 Forsyth v Blundell; Associated Securities Ltd v Blundell [1973] HCA 20; (1973) 129 CLR 477 GE Capital Australia v Davis [2002] NSWSC 1146; (2002) 180 FLR 250 George Barker (Transport) Ltd v Eynon [1974] 1 WLR 462 Georgiadis v Australian & Overseas Telecommunications Corporation [1994] HCA 6; (1994) 179 CLR 297 Gosling v Gaskell [1897] AC 575 Gough's Garages Ltd v Pugsley [1930] 1 KB 615 Hall v Poolman [2009] NSWCA 64; (2009) 75 NSWLR 99 In Re Henry Pound, Son, & Hutchins (1889) 42 Ch D 402 In re Newdigate Colliery Limited [1912] 1 Ch 468 Leslie, in the matter of the Aboriginal Councils & Associations Act 1976 v Hennessy [2001] FCA 371 Meadow Springs Fairway Resort Ltd (in liq) v Balanced Securities Ltd (No 3) [2008] FCA 861; (2008) 66 ACSR 649 Menzies v Paccar Financial Pty Ltd (No 4) [2014] NSWCA 210; (2014) 101 ACSR 25 Nardell Coal Corp (in liq) v Hunter Valley Coal Processing Pty Ltd [2003] NSWSC 642; (2003) 178 FLR 400 National Australia Bank Ltd v New South Wales [2009] FCA 1066; (2009) 182 FCR 52 Naxatu Pty Limited v Perpetual Trustee Company Ltd [2012] FCAFC 163; (2012) 207 FCR 502 Norman v Commissioner of Taxation (Cth) [1963] HCA 21; (1963) 109 CLR 9 Northbourne Developments Pty Ltd v Reiby Chambers Pty Ltd (1989) 19 NSWLR 434 Oswal, in the matter of Burrup Fertilisers Pty Ltd (Receivers and Managers Appointed) v Carson, McEvoy and Theobald (Receivers and Managers) (No 3) [2013] FCA 357; (2013) 300 ALR 149 Owners of Strata Plan 5290 v CGS & Co Pty Ltd [2011] NSWCA 168; (2011) 81 NSWLR 285 Pendlebury v Colonial Mutual Life Assurance Society Ltd [1912] HCA 9; (1912) 13 CLR 676 Re Diesels & Components Pty Ltd [1985] 2 Qd R 456 Re Empire Plant Hire Pty Ltd (In Liq) [2021] VSC 549; (2021) 64 VR 1 Re Landmark Corporation Ltd (in liq) [1968] 1 NSWR 705 Re S&D International Pty Ltd (in liquidation) (receiver and manager appointed) [2009] VSC 225 Re United Pacific Transport Pty Ltd [1968] Qd R 517 Sahab Holdings Pty Ltd v Tonks [2023] NSWCA 12; (2023) 167 ACSR 560 Silven Properties Ltd v Royal Bank of Scotland plc [2003] EWCA Civ 1409; [2004] 1 WLR 997 South Australian Management Corporation v Sheahan (1995) 16 ACSR 45 State Bank of New South Wales v Chia [2000] NSWSC 552; (2000) 50 NSWLR 587 Thomas v Todd [1926] 2 KB 511 Tolhurst v Associated Portland Cement Manufacturers (1900) Ltd [1902] 2 KB 660 Willmott Growers Group Inc v Willmott Forests Ltd (Receivers and Managers appointed) (in liq) [2013] HCA 51; (2013) 251 CLR 592