Lewis & Anor v. Doran & Ors [2004] NSWSC 608

Reported Decision : 50 ACSR 175 (2004) 22 ACLC 1009

New South Wales Supreme Court

CITATION : Lewis & Anor v. Doran & Ors [2004] NSWSC 608 HEARING DATE(S) : 8 to 12 March, 2004 JUDGMENT DATE : 9 July 2004 JURISDICTION: Equity Division JUDGMENT OF : Palmer J DECISION : Liquidator's Amended Originating Process dismissed.

CATCHWORDS : CORPORATIONS - WINDING UP - INSOLVENCY - Whether s.95A Corporations Act has changed the law as established by Sandell v Porter - whether a company must show ability to pay all debts "from its own monies" - whether availability of unsecured borrowings may be taken into account - authorities and principles discussed - UNCOMMERCIAL TRANSACTION - Whether company in group may reasonably act for benefit of another company in group. - Bankruptcy Act 1914 UK - s.44(1) - Bankruptcy Act 1925 (Cth) - s.95(1) - Bankruptcy Act 1966 (Cth) - s.122 - Companies Act 1929 (UK) - s.265 LEGISLATION CITED : - Companies Act 1936 (NSW) - s.208 - Companies Act 1961 (NSW) - s.222, s.293 - Companies Code 1981 (NSW) - s.451 - Corporations Act 2001 (Cth) - s.95A, s.232, s.597(14), s.588FA, s.588FB, s.588FC, s.588M, s.588FE, s.588FF, s.598, s.1317HB, s.1318 - Corporations Law - s.497, s.592 - Supreme Court Rules 1970 (NSW) - Pt 72 - Adnot Pty Ltd, Re, and the Companies Act (1982) 7 ACLR 212, (1982) 1 ACLC 307 - Armour, Re (1956) 18 ABC 69 - Australian Securities and Investments Commission v Plymin (No 1) (2003) 175 FLR 124, (2003) 46 ACSR 126, [2003] VSC 123 - Bank of Australasia v Hall (1907) 4 CLR 1514 - Bush v Wardair Pty Ltd [2003] NSWSC 955 - Emanuel Management Pty Ltd v Foster's Brewing Group Ltd [2003] QSC 205, (2003) 178 FLR 1 - Equiticorp Finance Ltd (in liq) v Bank of New Zealand (1993) 32 NSWLR 50 - Expile Pty Ltd v Jabb's Excavations Pty Ltd (2003) 45 ACSR 711, (2003) 21 ACLC 1354, [2003] NSWCA 163 - Geraldton Building Co Pty Ltd v Woodmore (1992) 8 ACSR 585 - Harrison v Lewis (2001) 19 ACLC 566, [2001] VSC 27 - Iso Lilodw' Aliphumeleli Pty Ltd (In liq) v Commissioner of Taxation (2002) 42 ACSR 561, (2002) 50 ATR 391, [2002] NSWSC 644 - Keith Smith East West Transport Pty Ltd (In liq) v Australian Taxation Office (2002) 42 ACSR 501, [2002] NSWCA 264 - Kerisbeck Pty Ltd, Re (1992) 10 ACLC 619 CASES CITED : - Kyra Nominees Pty Ltd (In liq) v National Australia Bank Ltd (1986) 4 ACLC 400 - McVeigh v Commissioner of Taxation [2004] FCA 653 - Metledge v Bambakit Pty Ltd [2004] NSWSC 176 - Norfolk Plumbing Supplies Pty Ltd v Commonwealth Bank of Australia (1992) 6 ACSR 601 - Rees v Bank of New South Wales (1964) 111 CLR 210 - RHD Power Services Pty Ltd (In liq), Re (1990) 3 ACSR 261, (1990) 9 ACLC 27 - Sandell v Porter (1966) 115 CLR 666 - Southern Cross Interiors Pty Ltd (In liq) v Deputy Commissioner of Taxation (2001) 53 NSWLR 213, (2001) 188 ALR 114, (2001) 164 FLR 430, (2001) 39 ACSR 305 - Taylor v Australia and New Zealand Banking Group Ltd (1988) 13 ACLR 780 - Re United Medical Protection Ltd (Prov Liq appointed) (2003) 47 ACSR 705, (2004) 22 ACLC 56, [2003] NSWSC 1031 - White Constructions (ACT) Pty Ltd (In liq) v White [2004] NSWSC 71, [2004] NSWSC 71 - CCH Australian Corporations Commentary (loose-leaf, CCH Australia, 2004) - §141-010 - Ford's Principles of Corporations Law (loose-leaf Butterworths, 2000), p.20,158 - McPherson: The Law of Company Liquidation (4th Ed, LBC, 1999) p.438 Alan Edward Lewis - First Plaintiff Doran Constructions Pty Ltd (In liq) - Second Plaintiff Paul Adrian Doran - First Defendant PARTIES : Peter Joseph Doran - Second Defendant Michael Leo Doran - Third Defendant John Cerriti Doran - Fourth Defendant Doran Holdings Pty Ltd - Fifth Defendant Doran Constructions (Australia) Pty Ltd (In liq) - Sixth Defendant FILE NUMBER(S) : SC 4406/00 S.R. Donaldson SC, P.S. Braham - Plaintiffs COUNSEL : A.S. Martin SC, S. Wells - 1st to 5th Defendants P. Parker (Sol) - 6th Defendant - Submitting appearance Purcell Insolvency Lawyers - Plaintiffs SOLICITORS : Christopher C. Freeman & Co - 1st to 5th Defendants Kemp Strang - 6th Defendant - Submitting appearance