Sev.en Gamma a.s v IG Energy Holdings (Australia) Pty Ltd [2023] NSWSC 1032

Supreme Court New South Wales

Medium Neutral Citation: Sev.en Gamma a.s v IG Energy Holdings (Australia) Pty Ltd [2023] NSWSC 1032 Hearing dates: 15 August 2023 Decision date: 31 August 2023 Jurisdiction: Equity - Commercial List Before: Ball J Decision: Summons be dismissed with costs Catchwords: MORTGAGES AND SECURITIES — Where defendant has not repaid money owing under credit facility and administrators are appointed to defendant — Whether defendant must execute a general security deed under a clause of credit agreement — Security deed would be void unless entered into under an order of the Court under s 437D(2)(c) of the Corporations Act 2001 (Cth) — Plaintiff has not proved that the defendant entering the security deed would benefit the company as a whole or creditors generally CONTRACTS — Formation — Uncertainty — Whether promise to provide "any adequate" security in credit agreement is sufficiently certain to be enforceable — Credit agreement does not identify the secured property, circumstances it may be exercised and the rights that attach to its exercise Legislation Cited: Corporations Act 2001 (Cth) Cases Cited: Biotechnology Australia v Pace (1988) 15 NSWLR 130 Commonwealth Industrial Gases Ltd v Dorcon Constructions Pty Ltd (in liq) (1988) 92 FLR 197; 14 ACLR 201 Jardio Holdings Pty Ltd v Dorcon Constructions Pty Ltd (1984) 3 FCR 311 Masters v Cameron (1954) 91 CLR 353; [1954] HCA 72 May & Butcher Ltd v The King [1934] 2 KB 17 Pakenham Upper Fruit Co Ltd v Crosby [1924] HCA 55; (1924) 35 CLR 386 Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia (1998) 195 CLR 1; [1998] HCA 30 Re Connelly (Liquidator), Samgris Resources Pty Ltd (in liq) [2018] FCA 1814 Roberts v Investwell Pty Ltd (in liq) [2012] NSWCA 134 Secure Parking Pty Ltd v Woollahra Municipal Council [2016] NSWCA 154 Whitlock v Brew (1968) 118 CLR 445 Category: Principal judgment Parties: Sev.en Gamma a.s. (Plaintiff) IG Energy Holdings (Australia) Pty Ltd (Defendant) Representation: Counsel: RA Dick SC with ML Rose (Plaintiff) A Pomerenke KC with AE Munro (Defendant)