Campbell Street Theatre Pty Ltd (receiver and manager appointed) (in liquidation) & Ors v Commercial Mortgage Trade Pty Ltd & Anor [2012] NSWSC 669

Supreme Court New South Wales

Medium Neutral Citation: Campbell Street Theatre Pty Ltd (receiver and manager appointed) (in liquidation) & Ors v Commercial Mortgage Trade Pty Ltd & Anor [2012] NSWSC 669 Hearing dates: 15 and 16 May 2012 Decision date: 19 June 2012 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Transaction declared uncommercial, insolvent and voidable. First Plaintiff released from deeds of agreement insofar as payment is required, or security is provided, by First Plaintiff to First Defendant. Purported appointment of Second Defendant as receiver of First Plaintiff declared invalid. Parties to be heard as to costs. Catchwords: CORPORATIONS - Uncommercial transactions - Corporations Act 2001 (Cth) s 588FB - Whether entry into deeds of agreement was an uncommercial transaction - Insolvency - Corporations Act 2001 (Cth) s 588FC - Whether entry into deeds of agreement was an insolvent transaction - Voidable transactions - Whether entry into deeds of agreement was a voidable transaction - Whether First Plaintiff should be released from the transaction. Legislation Cited: - Corporations Act 2001 (Cth) ss 9, 95A(1), 95A(2), 286, 588E(4), 588E(9), 588FB, 588FB(1), 588FC, 588FE, 588FE(3), 588FF, 761A, 763A(1), 763A(1)(b), 763C, 766A(1)(b), 766C(1)(b), 911A, 925A, 925A-925E, 925B, 925E - Evidence Act 1995 (NSW) s 190 Cases Cited: - Arena Management Pty Ltd (admin apptd) (recs and mgrs apptd) v Campbell Street Theatre Pty Ltd [2010] NSWSC 957 - Australian Securities and Investments Commission v Plymin (No 1) [2003] VSC 123; (2003) 46 ACSR 126; 21 ACL 700 - Bartercard Ltd v Wily [2001] NSWCA 262; (2001) 39 ACSR 94; 19 ACLC 1461 - Bell Group Ltd (in liq) v Westpac Banking Corporation (No 9) [2008] WASC 239; (2008) 39 WAR 1; 70 ACSR 1 - Bentley Smythe Pty Ltd v Anton Fabrications (NSW) Pty Ltd [2011] NSWSC 186; (2011) 248 FLR 384 - Demondrille Nominees Pty Ltd v Shirlaw [1997] FCA 1220; (1997) 25 ACSR 535; 15 ACLC 1716 - Fisher v Divine Homes Pty Ltd [2011] NSWSC 8; (2011) 85 ACSR 512 - International Litigation Partners Pte Ltd v Chameleon Mining NL [2011] NSWCA 50; (2011) 276 ALR 138 - Lewis (as liq of Doran Constructions Pty Ltd (in liq)) v Doran [2005] NSWCA 243; (2005) 219 ALR 555; 54 ACSR 410 - McDonald v Hanselmann [1998] NSWSC 171; (1998) 28 ACSR 49 - New Cap Reinsurance Corp Ltd v Somerset Marine Inc [2003] NSWSC 540 - Old Kiama Wharf Company Pty Ltd (in liq) v Betohuwisa Investments Pty Ltd [2011] NSWSC 823; (2011) 85 ACSR 87 - Re Emanuel (No 14) Pty Ltd (in liq); Macks v Blacklaw & Shadforth Pty Ltd (1997) 147 ALR 281; 24 ACSR 292; 15 ACLC 1099 - Re SSET Construction Pty Ltd (in liq); Sims v Khattar [2010] NSWSC 102 - Skouloudis Group Pty Ltd (in liq) v Planet Enterprizes Pty Ltd [2002] NSWSC 239; (2002) 41 ACSR 369 - Southern Cross Interiors Pty Ltd (in liq) v Deputy Commissioner of Taxation [2001] NSWSC 621; (2001) 53 NSWLR 213; 39 ACSR 305 - Tosich Construction Pty Ltd (in liq) v Tosich (1997) 78 FCR 363; 15 ACLC 637 - Wily v Bartercard Ltd [2000] NSWSC 372; (2000) 34 ACSR 186; 18 ACLC 448 - Woodgate v Fawcett [2008] NSWSC 868; (2008) 67 ACSR 611 Texts Cited: - A Keay, "Liquidators' Avoidance of Uncommercial Transactions" (1996) 70 ALJ 390 Category: Principal judgment Parties: Campbell Street Theatre Pty Ltd (receiver and manager appointed) (in liquidation) (First Plaintiff) John Sheahan (Second Plaintiff) Ian Lock (Third Plaintiff) Commercial Mortgage Trade Pty Ltd (First Defendant) Robert Whitton (Second Defendant) Representation: Counsel: J. Marshall SC/D. Sulan (Plaintiffs) C. Robinson (First Defendant) Solicitors: O'Neill Partners (Plaintiffs) Cambridge Law (First Defendant) File Number(s): 11/102873