In the matter of Employ (No 96) Pty Limited (in liquidation) [2013] NSWSC 61

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Employ (No 96) Pty Limited (in liquidation) [2013] NSWSC 61 Hearing dates: 16, 17 and 18 October 2012; 5 and 6 December 2012 Decision date: 08 February 2013 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Held that specified transactions were uncommercial transactions for the purposes of ss 588FA and 588FB Corporations Act 2001 (Cth) respectively. Parties to be heard on orders to be made to give effect to judgment and as to costs. Catchwords: CORPORATIONS - Voidable transactions - Application for orders under Corporations Act 2001 (Cth) s 588FF - Whether transactions are unfair preferences - Whether transactions are uncommercial transactions - Whether transactions are voidable as insolvent transactions - Whether defence under s 588FG(1)(a) Corporations Act 2001 (Cth) is applicable. Legislation Cited: - Bankruptcy Act 1966 (Cth) s 122 - Civil Procedure Act 2005 (NSW) s 100 - Corporations Act 2001 (Cth) ss 9, 95A(1), 95A(2), 491, 588FA, 588FA(1), 588FA(3), 588FB, 588FB(1), 588FB(1)(a)-(d), 588FE(2)(b), 588FF, 588FG, 588FG(1)(a), 588FG(2), 588FI(3) - Evidence Act 1995 (Cth) ss t60, 136 Cases Cited: - Airservices Australia v Ferrier (1996) 185 CLR 483 - Bartercard Ltd v Wily [2001] NSWCA 262; (2001) 39 ACSR 94 - Beveridge v Whitton [2001] NSWCA 6 - Buzzle Operations Pty Ltd (in liq) v Apple Computer Australia Pty Ltd [2011] NSWCA 109; (2011) 81 NSWLR 47; (2011) 82 ACSR 703 - Capital Finance Australia Ltd v Tolcher [2007] FCAFC 185; (2007) 164 FCR 83; (2007) 64 ACSR 705 - Cashflow Finance Pty Ltd (in liq) v Westpac Banking Corporation [1999] NSWSC 671 - Clifton (as liquidator of Adelaide Fibrous Plasterboard Linings Pty Ltd (in liq)) v CSR Building Products Pty Ltd [2011] SASC 103 - Commissioner of Taxation v Kassem [2012] FCAFC 124; (2012) 205 FCR 156 - Cussen v Sultan [2009] NSWSC 1114; (2009) 74 ACSR 496 - Demondrille Nominees Pty Ltd v Shirlaw [1997] FCA 1220; (1997) 25 ACSR 535 - Lewis (as liq of Doran Constructions Pty Ltd (in liq)) v Doran [2005] NSWCA 243; (2005) 219 ALR 555; 54 ACSR 410 - Mann v Sangria Pty Ltd [2001] NSWSC 172; (2001) 38 ACSR 307 - McDonald v Hanselmann [1998] NSWSC 171; (1998) ACSR 49 - McKern v Minister Administering the Mining Act 1978 (WA) [2010] VSCA 140; (2010) 28 VR 1 - Partridge v McIntosh (1933) 49 CLR 453 - Re Emanuel (No 14) Pty Ltd (in liq); Macks v Blacklaw & Shadforth Pty Ltd (1997) 147 ALR 281; (1997) 24 ACSR 292 - Richardson v Commercial Banking Co of Sydney Ltd (1952) 85 CLR 110 - Skouloudis Group Pty Ltd (in liq) v Planet Enterprizes Pty Ltd [2002] NSWSC 239; (2002) 41 ACSR 369 - Sutherland (as liquidator of Sydney Appliances Pty Ltd (in liq)) v Eurolinx Pty Ltd [2001] NSWSC 230; (2001) 37 ACSR 477 - Tosich Construction Pty Ltd (in liq) v Tosich (1997) 78 FCR 363 - V R Dye & Co v Peninsula Hotels Pty Ltd (in liq) [1999] VSCA 60; [1999] 3 VR 201; (1999) 32 ACSR 27 - Wily v Bartercard Ltd [2000] NSWSC 372; (2000) 34 ACSR 186 Texts Cited: - Keay, Andrew, "Liquidators Avoidance of Uncommercial Transactions" (1996) 70 ALJ 390 Category: Principal judgment Parties: Timothy Paul Heesh and Terry Grant Van der Velde in their capacities as liquidators of Employ (No 96) Pty Limited (in liquidation) (First Plaintiffs) Employ (No 96) Pty Limited (in liquidation) (Second Plaintiff) Anthony de Vries (First Defendant) Raid Tayeh (Second Defendant) DVT Services (NSW) Pty Limited (Third Defendant) Representation: Counsel: M.S. Henry (Plaintiffs) S. Golledge (Defendants) Solicitors: Polczynski Lawyers (Plaintiffs) Somerset Ryckmans (Defendants) File Number(s): 10/279623