MANN & ANOR v. SANGRIA P/L [2001] NSWSC 172

Reported Decision : (2001) 38 ACSR 307 (2001) 19 ACLC 696

New South Wales Supreme Court

CITATION : MANN & ANOR v. SANGRIA P/L [2001] NSWSC 172 revised - 2/05/2001 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 4062/99 HEARING DATE(S) : 08/03/2001 JUDGMENT DATE : 21 March 2001

JOHN MANN (2nd Pltf) PARTIES : G.A. COONEY HOLDINGS PTY LTD (IN LIQ) (3rd Pltf) SANGRIA P/L (Defendant) JUDGMENT OF : Bryson J at 1

COUNSEL : R.D. Marshall - Pltf; K. Andronos - Dft SOLICITORS : Gordon & Johnstone - Pltf Mallesons Stephen Jaques - Dft CATCHWORDS : CORPORATIONS - external administration - voidable transactions - preferential payments - Abattoir sold meat to wholesale Butcher August 1996 to March 1997 then sued to recover $186,000 unpaid account - action settled on terms that debt paid off at $7000 per month - six instalments paid in period January to June 1998 - in May and June 1998 Abattoir sold and delivered six consignments of meat which were each paid for by a cheque specifically for the price of one consignment - cheques postdated 2 or 3 weeks and handed over at or forwarded soon after delivery total $27811.58 - voluntary administration on 22 June followed by winding-up - company insolvent throughout 6 months preceding VA - on claim under subs.588FA(1) to recover payments, instalments off old debt $42,000 were held to be preferences - payments $27,811.58 for deliveries in May and June were held not to fall within subs.588FA(1) as the transactions were not preferential - consideration of categorisation of facts and events as transaction within the meaning of subs.588FA(1) - defence under s.588FG(2) failed because of grounds for suspicion of insolvency - consideration of Dye v. Peninsula Hotels (Ormiston JA) VR Dye & Co. v. Peninsula Hotel (in Liq) & Anor [1999] 3 VR 201; [1999] 32 ACSR 27 Richardson v. Commercial Banking Co. of Sydney Ltd (1952) 85 CLR 110 CASES CITED : Airservices Australia v. Ferrier (1996) 185 CLR 483 Nilant v. Borden Australia Pty Ltd (FCA 26/6/96 Hill J) Queensland Bacon Proprietary Limited v. Rees (1966) 115 CLR 266 DECISION : Judgment for the plaintiff for $42,000 plus interest.