In the matter of Bias Boating Pty Limited (receivers and managers appointed) (in liquidation) [2018] NSWSC 1977

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Bias Boating Pty Limited (receivers and managers appointed) (in liquidation) [2018] NSWSC 1977 Hearing dates: 21 November 2018 Decision date: 18 December 2018 Jurisdiction: Equity - Corporations List Before: Black J Decision: The Second Plaintiff is found to have been insolvent for the whole of the period from 25 February 2014 to 25 August 2014. Catchwords: CORPORATIONS – voidable transactions – determination of separate question as to solvency of company – where the borrowing capacity of the company was never enough to meet all of its debts – where the company was not generating significant cash flow surpluses from which debts could be paid during the relevant period – whether company was insolvent during the relevant period. Legislation Cited: - Corporations Act 2001 (Cth) ss 95A, 286, 588FA, 588FC, 588FE, 588FF Cases Cited: - 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 - Elliott v Australian Securities and Investments Commission [2004] VSCA 54; (2004) 10 VR 369 - First Strategic Development Corporation Ltd (in liq) v Chan [2014] QSC 60 - International Cat Manufacturing (in liq) v Rodrick [2013] QCA 372; (2013) 97 ACSR 200 - Lewis (as liquidator of Doran Constructions Pty Ltd) v Doran [2005] NSWCA 243; (2005) 54 ACSR 410 - Morris v Danoz Directions Pty Ltd (in liq) (No 2) [2010] FCA 836 - Quick v Stoland Pty Ltd (1998) 29 ACSR 130 - Re Swan Services Pty Limited (in liq) [2016] NSWSC 1724 - Southern Cross Interiors Pty Ltd (in liq) v Deputy Commissioner of Taxation [2001] NSWSC 621; (2001) 39 ACSR 305 - SX Projects Pty Ltd (in liq) v V Battaglia & Ors [2018] NSWSC 1830 - White Constructions (ACT) Pty Ltd (in liq) v White [2004] NSWSC 71; (2004) 49 ACSR 220 Category: Principal judgment Parties: Ian James Purchas in his capacity as liquidator of Bias Boating Pty Limited (receivers and managers appointed) (in liquidation) (First Plaintiff) Bias Boating Pty Limited (receivers and managers appointed) (in liquidation) (Second Plaintiff) Navico Australia Pty Limited (First Defendant) Supercharge Batteries Pty Ltd (Second Defendant) R W Basham Pty Limited t/as RWB Marine (Third Defendant) Commissioner of State Revenue (Qld) (Eleventh Defendant) Lalizas Marine Australia Pty Ltd t/as Oceansouth Pty Ltd (Thirteenth Defendant) Littler Investment Company Pty Ltd t/as Boating Lifestyle Adventure (Sixteenth Defendant) RFD (Australia) Pty Ltd (Seventeenth Defendant) Representation: Counsel: S Golledge (Plaintiffs) N Hallasso (Solicitor – First and Thirteenth Defendants) V Tranchita (Director of the former Fifth Defendant)