In the matter of Tanamerah Estates Pty Ltd [2016] NSWSC 1644

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Tanamerah Estates Pty Ltd [2016] NSWSC 1644 Hearing dates: 9 September 2016, 10 November 2016 Decision date: 22 November 2016 Jurisdiction: Equity - Corporations List Before: Black J Decision: The Court orders the Defendant be wound up in insolvency and Mr Timothy James Cook be appointed as liquidator of the Defendant. The Plaintiff's costs of the proceedings be costs in the winding up. Catchwords: CORPORATIONS — Winding up — Application by plaintiff to wind up company on grounds of insolvency – where company applied under s 459G of the Corporations Act 2001 (Cth) to set aside creditor's statutory demand issued by the plaintiff – where the Court dismissed application to set aside the statutory demand although that order was the subject of a stay – where company relied upon a deed of credit facility and a deed of indemnity provided by its director as evidence of solvency – where the deed of credit facility provided that any sum owed by the company would be repayable on demand – where deed of indemnity in effect provided that the director agreed to indemnify the company only if the company's board invoked the indemnity – whether the application to set aside the statutory demand was "finally determined or otherwise disposed of" for the purposes of s 459F(2)(a)(ii) of the Corporations Act when the orders dismissing the application were made or when the stay of the orders expired – whether presumption of insolvency available under s 459C(2)(a) of the Corporations Act 2001 (Cth) – whether company is insolvent in fact – whether the Court should exercise discretion not to wind up company despite finding company is insolvent in fact. Legislation Cited: - Civil Liability Act 2002 (NSW) - Corporate Law Reform Act 1992 (Cth) - Corporations Act 2001 (Cth), ss 459C, 459F, 459G, 459R, 459S, 467, Pt 5.4 - Trustee Act 1925 (NSW), s 59 - Uniform Civil Procedure Rules 2005 (NSW), rr 36.4, 36.15 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 - Bentley Smythe Pty Ltd v Anton Fabrications (NSW) Pty Ltd [2011] NSWSC 186; (2011) 248 FLR 384 - Buckland Products Pty Ltd v Deputy Commissioner of Taxation of the Commonwealth of Australia [2003] VSCA 85 - Bunnings Forest Products Pty Ltd v Bullen (1994) 126 ALR 660 - Commercial Union Assurance Co of Australia Ltd v Ferrcom Pty Ltd (1991) 22 NSWLR 389 - Commonwealth Broadcasting Corp Pty Ltd v Pacific Mobile Phones Pty Ltd [2008] QSC 210 at [29]; (2008) 219 FLR 422 - Elliott v Australian Securities and Investments Commission [2004] VSCA 54; (2004) 48 ACSR 621 - Elyard Corporation Pty Limited v DDB Needham Sydney Pty Ltd [1995] FCA 1685 - Expile Pty Ltd v Jabb's Excavations Pty Ltd [2003] NSWSC 699; (2003) 46 ACSR 446 - FAI Insurances Ltd v Goldleaf Interior Decorators Pty Ltd (No 2) (1988) 14 NSWLR 643 - First Strategic Development Corporation Ltd (in liq) v Chan [2014] QSC 60 - Frumar v The Owners of Strata Plan 3695 [2010] NSWCA 172 - International Cat Manufacturing (in liq) v Rodrick [2013] QCA 372; (2013) 97 ACSR 200; - Ketrim Pty Ltd v Jaeger Corporation Pty Ltd [2002] NSWSC 871; (2003) 21 ACLC 8 - Lawstrane Pty Ltd and Victorian WorkCover Authority v Ruttmar [2013] VSCA 57; (2013) 37 VR 320 - Lechmere Financial Corp v Aspermont Ltd [2003] FCA 1138 - Lewis (as liquidator of Doran Constructions Pty Ltd (in liq)) v Doran [2005] NSWCA 243; (2005) 54 ACSR 410 - Meehan v Glazier Holdings Pty Ltd [2005] NSWCA 24; (2005) 53 ACSR 229 - Mulherin v Bank of Western Australia Ltd [2006] QCA 175 - Palmer Petroleum Pty Ltd v BGP Geoexplorer Pte Ltd [2016] QCA 149 - Penson v Titan National Pty Ltd (No 2) [2015] NSWCA 197 - Penson v Titan National Pty Ltd [2015] NSWCA 165 - Permewan Wright Consolidated Pty Ltd v Attorney-General (NSW) (1978) 35 NSWLR 365 - PJM Financial Services Pty Ltd v Citigroup Global Markets Australia Pty Ltd [2008] NSWSC 619 - Playspace Playground Pty Ltd v Osborn [2009] FCA 1486 - R v P (No 2) [2003] NSWCA 360 - Re Aquaqueen International Pty Ltd [2014] NSWSC 1645 - Re Aquaqueen International Pty Ltd [2015] NSWSC 212 - Re Gladstone Mortgagee No 1 Pty Ltd [2015] NSWSC 1551 - Re Marks and Federated Ironworkers' Association; Ex parte Australian Building Construction Employees and Builders' Labourers' Federation (1981) 34 ALR 208 - Re Perth Freight Lines Pty Ltd [2010] VSC 395 - Southern Cross Interiors Pty Ltd (in liq) v Deputy Commissioner of Taxation [2001] NSWSC 621; (2001) 39 ACSR 305 - State of New South Wales v Bujdoso [2007] NSWCA 44; (2007) 69 NSWLR 302 - SY Financial Services Pty Ltd v Risk Business Pty Ltd [2015] VSC 421 - Tanamerah Estates Pty Ltd v Tibra Capital Pty Ltd [2015] NSWSC 1519 - Tanamerah Estates Pty Ltd v Tibra Capital Pty Ltd [2015] NSWSC 1708 - TS Recoveries Pty Ltd v Sea-Slip Marinas (Aust) Pty Ltd [2007] NSWSC 1410 - VFS Group Pty Ltd v BM2008 Pty Ltd (in liq) [2010] VSCA 277; (2010) 80 ACSR 240 - Williams (as liquidator of Scholz Motor Group Pty Ltd (in liq)) v Scholz [2008] QCA 94 - Zaccardi v Caunt [2008] NSWCA 202 Category: Principal judgment Parties: Tibra Capital Pty Limited (Plaintiff) Tanamerah Estates Pty Ltd (First Defendant) Representation: Counsel: M Klooster (Plaintiff) D Krochmalik (9 September 2016), L Whiffen (10 November 2016) (Defendant)