Mehan v Arrium Limited (formerly Onesteel Limited) & Anor [2016] NSWSC 1680

Supreme Court New South Wales

Medium Neutral Citation: Mehan v Arrium Limited (formerly Onesteel Limited) & Anor [2016] NSWSC 1680 Hearing dates: 23 November 2016 Decision date: 29 November 2016 Jurisdiction: Equity - Corporations List Before: Black J Decision: The Court orders that Plaintiff be granted leave pursuant to s 444E(3)(c) of the Corporations Act 2001 (Cth) to proceed against the First Defendant on condition that the Plaintiff does not seek to enforce any judgment against the First Defendant without further leave of the Court. The Plaintiff's costs of the motion be the Plaintiff's costs in the proceedings. Ancillary orders made. Catchwords: CORPORATIONS — Deed of company arrangement — Leave sought under s 444E(3) of the Corporations Act 2001 (Cth) to continue proceedings against company in deed administration – where there was dispute as to terms of the company's insurance policy – where if leave were not granted there would be possibility of inconsistent results between proof of debt process and the proceedings against another defendant – whether leave ought be granted under s 444E(3)(c) of the Corporations Act 2001 (Cth). Legislation Cited: Corporations Act 2001 (Cth), ss 436A, 440D, 444E, 471B, 562, 562A, 553, 1321 Law Reform (Miscellaneous Provisions) Act 1946 (NSW), s 6 Cases Cited: - Attard v James Legal Pty Ltd [2010] NSWCA 311; (2010) 80 ACSR 585 - Australian Competition and Consumer Commission v Phoenix Institute of Australia Pty Ltd (subject to deed of company arrangement) [2016] FCA 1246 - Calliden Insurance Ltd v Chisholm [2009] NSWCA 398 - Easey v Grosvenor Constructions (NSW) Pty Ltd [2005] NSWSC 878; (2005) 54 ACSR 820 - J F Keir Pty Ltd v Priority Management Systems Pty Ltd (admin apptd) [2007] NSWSC 748 - Latimer v Cutwood Panels Pty Ltd (in liq) [2012] WASC 408 - Lawless v Mackendrick (No 2) [2008] WASC 15 - Meehan v Stockmans Australian Café (Holdings) Pty Ltd (1996) 22 ACSR 123 - Mentha, Re Arrium Ltd (admin apptd) [2016] FCA 487; (2016) 113 ACSR 302 - Ogilvie-Grant v East (liquidator of Gordon Grant & Grant Pty Ltd) (1983) 7 ACLR 669 - Re AJ Benjamin Ltd (in liq) [1969] 2 NSWR 374 - Re Coastal Constructions Pty Ltd (1994) 13 ACSR 329 - Re Sydney Formworks Pty Ltd [1965] NSWR 646 - Timbercorp Finance Pty Ltd (in liq) v Vivian [2016] VSC 338; (2016) 114 ACSR 198 Category: Procedural and other rulings Parties: Nathan Mehan (First Plaintiff) Arrium Limited (formerly Onesteel Limited) Pathways Labour Hire Pty Ltd (Second Defendant) Representation: Counsel: C Hart/A Edington (Plaintiff) J Mack (First Defendant)