In the matter of Ashington Bayswater Pty Limited (in liq) [2013] NSWSC 1008

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Ashington Bayswater Pty Limited (in liq) [2013] NSWSC 1008 Hearing dates: 2 May, 4 and 20 June 2013 Decision date: 30 July 2013 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Held that three transactions were preferences; one of those transactions was an uncommercial transaction; and those transactions were insolvent and voidable transactions. Parties to bring in short minutes of order to give effect to the judgment within seven days. Catchwords: CORPORATIONS - whether transactions liable to be set aside as preferences, uncommercial transactions and insolvent transactions under Part 5.7B of the Corporations Act - whether the company was insolvent at relevant times - whether a presumption of insolvency based on a failure to maintain adequate financial records is established - whether the grant of a charge was an unfair preference or an uncommercial transaction - whether an assignment of rights in litigation was an unfair preference or an uncommercial transaction - whether payments made to the defendant were unfair preferences. Legislation Cited: - Bankruptcy Act 1966 (Cth) s 122 - Corporations Act 2001 (Cth) ss 9, 95A(1), 95A(2), 286, 588E(4), 588E(9), 588FA, 588FA(1), 588FA(3), 588FB, 588FB(1), 588FC, 588FE, 588FE(4), 588FF, 588FG(1) - Evidence Act 1995 (Cth) s 128 - Payroll Tax Act 2007 (NSW) ss 72, 79, 81, 81(1), 81(3), 87 - Tax Administration Act 1996 (NSW) s 94 Cases Cited: - Australian Securities and Investments Commission v Edwards [2005] NSWSC 831; (2005) 54 ACSR 583 - Australian Securities and Investments Commission v Plymin (No 1) [2003] VSC 123; (2003) 46 ACSR 126; (2003) 21 ACLC 700 - Bentley Smythe Pty Ltd v Anton Fabrications (NSW) Pty Ltd [2011] NSWSC 186; (2011) 248 FLR 384 - Chief Commissioner of State Revenue v Print National Pty Ltd [2013] NSWCA 96 - Cussen v Sultan [2009] NSWSC 1114; (2009) 74 ACSR 496 - Demondrille Nominees Pty Ltd v Shirlaw [1997] FCA 1220; (1997) 25 ACSR 535 - Fisher v Divine Homes Pty Ltd [2011] NSWSC 8; (2011) 85 ACSR 512 - Lewis v Doran [2005] NSWCA 243; (2005) 54 ACSR 410 - Mann v Sangria Pty Ltd [2001] NSWSC 172; (2001) 38 ACSR 307 - McDonald v Hanselmann [1998] NSWSC 171; (1998) 28 ACSR 49 - Morris v Danoz Directions Pty Ltd (in liq) (No 2) [2010] FCA 836 - Old Kiama Wharf Company (in liq) v Betohuwisa Investments Pty Ltd [2011] NSWSC 823; (2011) 85 ACSR 87 - Playspace Playground Pty Ltd v Osborn [2009] FCA 1486 - Re Damalock Pty Ltd (in liq); Lewis and Carter as liquidators of Damalock Pty Ltd (in liq) v VISA Australia Pty Ltd [2008] FCA 1801; (2008) 68 ACSR 493 - 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; (2001) 39 ACSR 305 - Tosich Construction Pty Ltd (in liq) v Tosich (1997) 78 FCR 363 - VR Dye & Co v Peninsula Hotels Pty Ltd (in liq) [1999] VSCA 60; (1999) 3 VR 201; (1999) 150 FLR 307 - Woodgate v Fawcett [2008] NSWSC 868; (2008) 67 ACSR 611 Category: Principal judgment Parties: Ian James Purchas (Plaintiff) Bayswater Capital Pty Limited (Defendant) Representation: Counsel: P.M. Knowles (Plaintiff) M. Bennett (Defendant) Solicitors: Andrew Williams and Megan McCormick Lawyers (Plaintiff) File Number(s): 2012/360931