In the matter of Free Wesleyan Church of Tonga in Australia Inc (administrators appointed) Phoenix Lacquers & Paints Pty Limited v Free Wesleyan Church of Tonga in Australia Inc (administrators appointed) & Ors [2012] NSWSC 214

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Free Wesleyan Church of Tonga in Australia Inc (administrators appointed) Phoenix Lacquers & Paints Pty Limited v Free Wesleyan Church of Tonga in Australia Inc (administrators appointed) & Ors [2012] NSWSC 214 Hearing dates: 6 March 2012 Decision date: 13 March 2012 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Proceedings dismissed. Plaintiff to pay Defendants' costs. Catchwords: CORPORATIONS - Creditors' meeting - Plaintiff seeks declaration as to validity of resolution to remove and replace joint and several administrators - Plaintiff submitted proof of debt to chairperson of creditors' meeting- Chairperson admitted debt after recalculating interest at a lower simple interest rate - Debt treated as "a debt the value of which was not established" for the purposes of reg 5.6.23(2)(d) of Corporations Regulations 2001 (Cth) - Whether chairperson's decision effected by bad faith, mistake as to facts, error of law or error of principle - Whether the declarations sought by the Plaintiff ought to be made. Legislation Cited: - Associations Incorporation Act 2009 (NSW) s 54 - Australian Securities and Investments Commission Act 2001 (Cth) ss 12CA, 12CB, 12CB(1), 12CB(2), 12GM, 12GO, 50 - Bankruptcy Act 1966 (Cth) ss 198, 198(2) - Contracts Review Act 1980 (NSW) - Corporations Act 2001 (Cth) - Pt 5.3A, ss 436C, 449B, 473, 600C, 600C(3), 1321 - Corporations (Ancillary Provisions) Act 2001 (NSW) - Corporations Regulations 2001 (Cth) regs 5.6.21(4)(c), 5.6.23, 5.6.23(1), 5.6.23(1)(a), 5.6.23(2), 5.6.23(2)(b), 5.6.23(2)(d), 5.6.26, 5.6.26(2), 5.6.26(3) Cases Cited: - Ausinco International Pty Ltd v Apex Sports Pty Ltd [2007] NSWSC 289; 61 ACSR 532 - Attorney-General (NSW) v World Best Holdings Ltd [2005] NSWCA 261; (2005) 63 NSWLR 557 - Australian Competition and Consumer Commission v 4WD Systems Pty Ltd [2003] FCA 850; (2003) 200 ALR 491 - Australian Securities and Investments Commission v Skeers [2007] FCA 1551 - Bacnet Pty Ltd v Lift Capital Partners Pty Ltd (in liq) [2010] FCAFC 36; (2010) 183 FCR 384; 78 ACSR 57 - Bovis Lend Lease Pty Ltd v Wily [2003] NSWSC 467; (2003) 45 ACSR 612 - Central Spring Works Australia Pty Ltd (admin apptd); Tubemakers of Australia Ltd v McLennan [2000] VSC 145; (2000) 34 ACSR 169 - Commonwealth Bank of Australia v Fernandez [2010] FCA 1487; (2010) 81 ACSR 262 - Farrow Mortgage Services Pty Ltd (in liq) v Abeyratne (1993) 47 FCR 208 - Global Realty Development Corp v Dominion Wines Ltd (in liq) [2005] NSWSC 1221; (2005) 56 ACSR 474 - Hurley v McDonald's Australia Pty Ltd [2003] FCA 850; (2000) ATPR 41-741 - Kirwan v Cresvale Far East Ltd (in liq) [2002] NSWCA 395; (2002) 44 ACSR 21 - Network Exchange Pty Ltd v MIG International Communications Pty Ltd (1994) 13 ACSR 544 - Plumbers Supplies Co-Operative Ltd v Firedam Civil Engineering Pty Ltd [2011] NSWSC 325 - Re Dummelow; Ex parte Ruffle (1873) LR 8 Ch Ap 997 - Re Levy; Ex parte Scholefield Goodman & Sons Ltd (1980) 50 FLR 99 - Re McLean; Ex parte Friends' Provident Life Office (1992) 36 FCR 502 - Re Moloney; Ex parte Field (1981) 51 FLR 31 - Selim v McGrath [2003] NSWSC 927; (2003) 47 ACSR 537 - Re Segal; Lensworth Finance Ltd v Segal (1975) 45 FLR 85 - Re Smarter Way (Aust) Pty Ltd; Smarter Way (Aust) Pty Ltd v D'Aloia (as admin of) Smarter Way (Aust) Pty Ltd [2000] VSC 408; (2000) 35 ACSR 595 - Re Tregonning; Ex parte Friends' Provident Life Office (1983) 74 FLR 327 - Tonto Home Loans Australia Pty Ltd v Tavares [2011] NSWCA 389 - Vincent, White & Associates Pty Ltd v Vouris (1998) 28 ACSR 93 - Young v Sherman [2002] NSWSCA 281; (2002) 170 FLR 86 Texts Cited: A Keay, "Creditors' meetings under Part X: The Entitlement to Vote" (1996) 4 Insolvency LJ 85 Category: Principal judgment Parties: Phoenix Lacquers & Paints Pty Limited (Plaintiff) Free Wesleyan Church of Tonga in Australia Inc. (administrators appointed) (First Defendant) Stephen Parbery in his capacity as joint and several voluntary administrator of Free Wesleyan Church of Tonga in Australia Inc (administrators appointed) (Second Defendant) Mark Robinson in his capacity as joint voluntary administrator of Free Wesleyan Church of Tonga in Australia Inc (administrators appointed) (Third Defendant) Representation: Counsel: D. A. Smallbone (Plaintiff) R. Weber SC/V. Bedrossian (Defendants) Solicitors: Somerset Ryckmans (Plaintiff) Norton Rose Australia (Defendants) File Number(s): 12/38336