BARTERCARD LIMITED v WILY & ANOR [2001] NSWCA 262

Reported Decision : (2001) 39 ACSR 94 (2001) 19 ACLC 1461

New South Wales Court of Appeal

CITATION : BARTERCARD LIMITED v WILY & ANOR [2001] NSWCA 262 FILE NUMBER(S) : CA 40409/00 HEARING DATE(S) : 31 July 2001 JUDGMENT DATE : 16 August 2001

PARTIES : Bartercard Limited - Appellant Andrew Wily and Business Barter Exchange Pty Limited (In Liquidation) - Respondents JUDGMENT OF : Handley JA at 1; Sheller JA at 2; Powell JA at 52

LOWER COURT JURISDICTION : Supreme Court - Equity Division LOWER COURT 3093/98 FILE NUMBER(S) : LOWER COURT Austin J JUDICIAL OFFICER :

M W Jarrett - Appellant COUNSEL : P M Wood - Respondents

SOLICITORS : Castrission & Co - Appellant The Argyle Partnership - Respondents CATCHWORDS : CORPORATIONS - winding up - voidable transaction - unfair preference - meaning of 'transaction'- whether creditor who terminates licence agreement receives benefit LEGISLATION CITED : Corporations Law CASES CITED: Stehar Knitting Mills Pty Ltd v Southern Textile Converters Pty Ltd (1980) 2 NSWLR 514 DECISION : Appeal dismissed with costs.

THE SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL CA 40409/00 ED 3093/98 HANDLEY JA SHELLER JA POWELL JA

Thursday, 16 August 2001

BARTERCARD LTD v WILY & ANOR The appellant operated a reciprocal trade exchange, and also acted as a franchisor in respect of this business. The respondent was the liquidator of BBX, a franchisee of the appellant. The appellant terminated the licence to BBX at a point when BBX was heavily indebted to it. BBX's business was transferred to the appellant, and the appellant set off the value of the business from the debt owed to it by BBX. BBX was subsequently wound up.