Young v ACN 081 162 512 & Anor [2005] NSWSC 139

Reported Decision : 52 ACSR 629 (2005) 23 ACLC 691

New South Wales Supreme Court

CITATION : Young v ACN 081 162 512 & Anor [2005] NSWSC 139

HEARING DATE(S) : 28/02/05

JUDGMENT DATE : 4 March 2005

JUDGMENT OF : Gzell J

DECISION : Declaration of equitable lien with priority overall debts under the Corporations Act 2001 (Cth) s 511. Security deemed to have been surrendered under Corporations Regulations 2001 (Cth) reg 5.6.24(3).

CATCHWORDS : EQUITY - Equitable Charges and Liens - Creditor pays company debt to enable work to be performed that returns a relatively larger sum to the liquidator - Whether creditor entitled to a lien for incontrovertible benefit to company - Whether payment a liquidator's priority expense under agency of necessity - Whether the rule in Ex parte James - In re Condon (1874) LR 9 Ch App 609 applies - CORPORATIONS - Winding Up - Secured creditor without valuing security votes on adjournment motion by poll - Whether voted her whole debt - Whether failure to value through inadvertence - Whether taken to have surrendered security - Corporations Regulation 2001 (Cth) 5.6.24(3)

Supreme Court Act 1970 Corporations Act 2001 (Cth) LEGISLATION CITED : Corporations Regulations 2001 (Cth) Companies Regulations 2001 (Cth)

Ex parte James; In re Condon (1874) LR 9 Ch App 609 Shirlaw v Taylor (1991) 31 FCR 222 Re Universal Distributing Co Ltd (in liq) (1933) 48 CLR 171 Cadorange Pty Ltd (in liq) v Tanga Holdings Pty Ltd (1990) 20 NSWLR 26 Monks v Poynice Pty Ltd (1987) 8 NSWLR 662 City Bank of Sydney v McLaughlin (1909) 9 CLR 615 Burns Phlip & Co Ltd v Gillespie Brothers Pty Ltd (1946-1947) 74 CLR 148 Hartogen Energy Ltd (in liq) v Australian Gas Light Co (1992) 36 FCR 557 Re Tyler. Ex parte The Official Receiver [1907] 1 KB 865 CASES CITED : Hypec Electronics Pty Ltd (in liq) v Mead [2003] NSWSC 934 Hypec v Mead [2004] NSWCA 221 Star v Silvia (No 1) (1994) 12 ACLC 600 Re Clark; Ex parte Trustee v Texaco Ltd [1975] 1WLR 559 Health & Life Care Ltd v SA Asset Management Corp (1995) 18 ACSR 153 Pomeroy's Equity Jurisprudence, 5th ed, 1941 Bowstead and Reynolds on Agency, 17th ed, Sweet and Maxwell, London Mason and Carter, Restitution Law in Australia, Butterworths, Sydney, 1995 Birks, An Introduction to the Law of Restitution, rev (1989)