Wily v Rothschild [1999] NSWSC 915

Reported Decision : 47 NSWLR 555 (1999) 17 ACLC 1643

New South Wales Supreme Court CITATION : Wily v Rothschild [1999] NSWSC 915 revised - 26/10/99 CURRENT JURISDICTION : Equity FILE NUMBER(S) : 2625 of 1996 HEARING DATE(S) : 3 and 4 May 1999; 24 August 1999 JUDGMENT DATE : 10 September 1999

Hugh Jenner Wily in his capacity as Liquidator of AUR NL (In Liquidation) (First Plaintiff) PARTIES : AUR NL (In Liquidation) (Second Plaintiff) Rothschild Australia Limited (Defendant) JUDGMENT OF : Windeyer J at 1

COUNSEL : B.A. Coles, QC (Plaintiffs) D.L. Williams (Defendant) SOLICITORS : Argyle Partnership Middletons Moore Bevins CATCHWORDS : CORPORATIONS - winding up - application to set aside transactions as void against the liquidator pursuant to s358 and s452 of Companies (NSW) Code - mortgages and charges - gold loan facility - whether funds used in repayment subject to security - charged deposits - whether creditor could have security over debt owed to depositor - set off - automatic operation on bankruptcy - operation where transaction prior to winding up commencement but on same day; PRECEDENT - conflicting decisions - long standing Australian decision - recent obiter of House of Lords but on direct point Bank of Credit and Commerce International SA (No. 8) [1996] Ch 245 Broad v Commissioner of Stamp Duties [1980] 2 NSWLR 40 Esanda Finance Corporation v Jackson(1993) 11 ACLC 138 Estate Planning Associates (Australia) Pty. Ltd v Commissioner of Stamp Duties [1985] 2 NSWLR 495 Gye v McIntyre (1991) 171 CLR 609 Hamilton v Commercial Bank of Australia (1992) 9 ACSR 90 CASES CITED : In Re Chargecard Services Limited [1987] Ch 150 Law v Jones [1972] 2 NSWLR 573 Naoroji v The Standard Chartered Bank of India [1868] LR 3 CD 444 National Safety Council v Lloyds Bank NZ Ltd (1992) 7 ACSR 286 National Westminster Bank v Halesowen Presswork [1972] 1 AC 785 Re Capel Marac Finance Australia Ltd v Capel (1994) 48 FCR 195 Stein v Blake [1996] AC 243 DECISION : Plaintiffs' claim dismissed with costs