In the matter of Evolvebuilt Pty Limited [2017] NSWSC 901

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Evolvebuilt Pty Limited [2017] NSWSC 901 Hearing dates: Tuesday, 4 July 2017 Date of orders: 06 July 2017 Decision date: 06 July 2017 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: Payment by third party head contractor of debts owed by subcontractor to secondary subcontractors not 'received from the company' under s 588FA. Judgment for the defendant, with costs. Catchwords: CORPORATIONS – external administration – winding up – liquidators' claims and remedies – unfair preferences – payment by third party to company's creditor – in what circumstances to be treated as payments by the company – whether "received from the company" – defences – reasonable grounds to suspect insolvency – distinction between insolvency and temporary cashflow problem Legislation Cited: (CTH) Corporations Act 2001, ss 588FA, 588FC, 588FE(2), 588FF, 588FG Cases Cited: Alsafe Security Products Pty Ltd atf the Alsafe Trust (in liq), Re [2016] NSWSC 428 Burness, In the matter of Denward Lane Pty Ltd (2009) 259 ALR 339; [2009] FCA 893 Chicago Boot Co Pty Ltd v Davies & McIntosh as Joint & Several Liquidators of Harris Scarfe Ltd (2011) 282 ALR 378; [2011] SASCFC 92 Commissioner of Taxation v Kassem and Secatore (2012) 205 FCR 156; [2012] FCAFC 124 Emanuel (No 14) Pty Ltd, Re; Macks v Blacklaw & Shadforth Pty Ltd (1997) 147 ALR 281; 24 ACSR 292 Imobridge Pty Ltd (in liq), Re [2000] 2 Qd R 280 Nilant v Plexipack Packaging Services Pty Ltd (1996) 68 FCR 352; 21 ACSR 428 Queensland Bacon Pty Ltd v Rees (1966) 115 CLR 266 Woodgate v Network Associates International BV [2007] NSWSC 1260 Category: Principal judgment Parties: Philip Raymond Hosking in his capacity as joint and several liquidator of Evolvebuilt Contracting Pty Ltd (in liquidation) (1P) David Anthony Hurst in his capacity as joint and several liquidator of Evolvebuilt Contracting Pty Ltd (in liquidation) (2P) Evolvebuilt Contracting Pty Ltd (in liquidation) (3P) Extend N Build Pty Ltd (1D) Build Projects Pty Ltd (2D) Consek Pty Ltd (3D) Thehai Trinh trading as T T Glass Aluminium (4D) Truthful Construction Pty Ltd (5D) Kennico Interiors Pty Ltd (8D) Representation: Counsel: M Pesman SC (Ps) A Martin (Ds) H Ledinh (4D)