In the matter of CIC Insurance Limited (in liquidation and subject to a scheme of company arrangement) and FAI General Insurance Company Limited (in liquidation and subject to a scheme of company arrangement) [2015] NSWSC 1518

Supreme Court New South Wales

Medium Neutral Citation: In the matter of CIC Insurance Limited (in liquidation and subject to a scheme of company arrangement) and FAI General Insurance Company Limited (in liquidation and subject to a scheme of company arrangement) [2015] NSWSC 1518 Hearing dates: 18 September 2015 Decision date: 15 October 2015 Jurisdiction: Equity - Corporations List Before: Black J Decision: Order that the period for the Plaintiff to submit final claim forms in the form annexed to the affidavit of Ms Kirsten Farmer dated 26 June 2015 under cl 25.1(b) of the Australian scheme to be extended to specified date. Order that the period within which the Defendants must determine whether the liabilities detailed in section D of each final claim form give rise to Established Scheme Claims be extended to a date three months after the date of lodgement of the claims. The Plaintiff pay the Defendants' costs of the application on the ordinary basis, as agreed or as assessed. Catchwords: CORPORATIONS – arrangements and reconstructions – schemes of arrangement or compromise – where scheme administrators rejected Plaintiff's request to submit additional final claims – where final claim forms previously submitted within time omitted claims, by reason of misunderstanding as to treatment of reinsurance recoveries - whether to grant an extension of time under s 1322(4) of the Corporations Act 2001 (Cth) – whether to set aside decision of scheme administrators under s 1321 of the Corporations Act 2001 (Cth) Legislation Cited: - Corporations Act 2001 (Cth) pt 5.1, ss 1321, 1322, 1322(4), 1322(6) - Motor Accidents Compensation Act 1999 (NSW) s 188 Cases Cited: - ASIC v Forestview Nominees Pty Ltd (recs & mgrs apptd) [2006] FCA 1530; (2006) 236 ALR 652 - Elderslie Finance Corporation Ltd v Australian Securities Commission (1993) 11 ACSR 157 - McGrath v Sturesteps [2011] NSWCA 315; (2011) 284 ALR 196 - Oil Basins Ltd v Bass Strait Oil Company [2012] FCA 1122; (2012) 297 ALR 261 - Re Affinity Health Ltd (2006) 58 ACSR 461 - Re Biron Capital Ltd [2005] FCA 1228; (2005) 54 ACSR 548 - Re Commonwealth Steel Co Pty Ltd [2013] NSWSC 1983 - Re Golden Iron Resources Ltd [2010] FCA 693 - Re Insurance Australia Group Pty Ltd (2003) 45 ACSR 702; 21 ACLC 1107 - Re Islamic Association Western Suburbs Sydney Inc [2015] NSWSC 638 - Re Keneally as administrator of Australian Blue Mountain International Cultural & Tourist Group Pty Ltd (admin apptd) [2015] NSWSC 937 - Re New South Wales Bar Association [2014] NSWSC 1695; (2014) 315 ALR 146 - Selim v McGrath [2003] NSWSC 927; (2003) 47 ACSR 537 - Super John Pty Ltd v Futuris Rural Pty Ltd [1999] NSWSC 627; (1999) 32 ACSR 398 - Tanning Research Laboratories Inc v O'Brien (1990) 169 CLR 332 - Weinstock v Beck [2013] HCA 14; (2013) 93 ACSR 231 - Wentworth Metals Group Pty Ltd v Leigh (as liqs of Bonython Metals Group Pty Ltd (in liq)) [2013] FCA 349; (2013) 93 ACSR 626 Category: Principal judgment Parties: The State Insurance Regulatory Authority (Plaintiff) Christopher John Honey as a scheme administrator of CIC and FAI; Anthony Gregory McGrath as a scheme administrator of CIC and FAI (Defendants) Representation: Counsel: D Sulan/R May (Plaintiff) A R Dick SC/D Barnett (Defendants)