In The Matter Of Commonwealth Steel Company Pty Limited ACN 000 007 698 [2013] NSWSC 1983

Supreme Court New South Wales

Medium Neutral Citation: In The Matter Of Commonwealth Steel Company Pty Limited ACN 000 007 698 [2013] NSWSC 1983 Hearing dates: 30 October 2013 Decision date: 30 October 2013 Jurisdiction: Equity Division - Corporations List Before: Brereton J Decision: Order pursuant to Corporations Act s 1321 that the decision of the defendants to reject the plaintiff's final claim form for estimation be reversed and in lieu thereof the defendants are to treat the liability notified in the plaintiff's final claim form for estimation as a "notified liability" for the purposes of clause 26.1 of the Australian Scheme of Arrangement. Further order that the period of time within which the scheme administrators are to determine the plaintiff's final claim form under clause 26.1 of the Australian Scheme of Arrangement be extended to three months after the date of this order, that is to say 30 January 2014. No order as to costs to the intent that each party bear its own costs. Catchwords: CORPORATIONS - Scheme of arrangement - where defendant scheme administrators sent to all known and potential scheme creditors a final claim form for estimation - defendant rejected claim because form returned late - application for order under (Cth) Corporations Act 2001 s 1321 reversing defendant's decision to reject form - consideration of proper construction of scheme document - whether form returned in time - plaintiff must be taken to have returned the document "so as to reach" the defendant if it caused it to be posted at a time when its reasonable expectation was that it would reach the defendant by the specified time - defendants were wrong to exclude the plaintiff's claim on the basis that it was late - appropriate to extend time under s 1322(4) if finding with respect to return of form not made. Legislation Cited: (Cth) Corporations Act 2001 s 1321, s 1322 Cases Cited: Re Affinity Health Ltd (2006) 58 ACSR 461 Ronay Investments Pty Ltd v Pinnacle V R B Pty Ltd [2000] VSC 333 Category: Principal judgment Parties: Commonwealth Steel Company ACN 000 007 698 (plaintiff) Christopher John Honey as a scheme administrator of CIC Insurance Limited (first defendant) Anthony Gregory McGrath as a scheme administrator of CIC Insurance Limited (in Liquidation and subject to a scheme of arrangement (second defendant) Representation: Counsel: D Sulan (plaintiff) D Barnett (defendants) Solicitors: Gadens Lawyers (plaintiff) Ashurst Australia (defendants) File Number(s): 2013/288204