Tolcher v National Australia Bank [2003] NSWSC 207

Reported Decision : (2003) 44 ACSR 727 (2003) 21 ACLC 587

New South Wales Supreme Court

CITATION : Tolcher v National Australia Bank [2003] NSWSC 207 HEARING DATE(S) : 14 March, 2003 JUDGMENT DATE : 14 March 2003 JURISDICTION: Equity Division JUDGMENT OF : Palmer J DECISION : Declarations as sought by Plaintiff.

CATCHWORDS : CORPORATIONS - UNFAIR PREFERENCE - INSOLVENT TRADING - FLOATING CHARGE - PRIORITIES - STATUTORY INTERPRETATION - Liquidator threatens claim under s.588FA and s.588M for recovery of unfair preference and compensation for insolvent trading - compromise of claims - money paid under Deed of Settlement - whether fund recovered is property of company subject to floating charge - whether new s.588FF(1)(a) effects a change to pre-existing law. - HELD: Following SJP Formwork (Aust) Pty Ltd (in liq) v Deputy Commissioner of Taxation and not following Jonsson, Milner and Riaps Pty Ltd (in liq) v Tim Ferrier Pty Ltd, the new s.588FF(1)(a) does not effect a change to the pre-existing law - money recovered in exercise of a liquidator's statutory recovery rights under s.588FA and s.588M can never be property of a company subject to a floating charge. LEGISLATION CITED : Corporations Act 2001 (Cth) - Subdivision D of Division 6 of Part 5.6, s.9(b)(ii), s.588FA, s.588FF, s.588M - Jonsson, Milner and Riaps Pty Ltd (in liq) v Tim Ferrier Pty Ltd [2001] QSC 010 CASES CITED : - N A Kratzmann Pty Ltd (in liq) v Tucker (No 2) (1968) 123 CLR 295 - SJP Formwork (Aust) Pty Ltd (in liq) v Deputy Commissioner of Taxation (2000) 34 ACSR 604 PARTIES : Raymond George Tolcher - Plaintiff National Australia Bank Limited - Defendant FILE NUMBER(S) : SC 1428/03 COUNSEL : R.R.I. Harper - Plaintiff P.M. Wood - Defendant SOLICITORS : Piper Alderman - Plaintiff Mallesons Stephen Jaques - Defendant