In the matter of BBY Limited (Receivers & Managers Appointed) (in Liquidation) [2019] NSWSC 1271

Supreme Court New South Wales

Medium Neutral Citation: In the matter of BBY Limited (Receivers & Managers Appointed) (in Liquidation) [2019] NSWSC 1271 Hearing dates: 1 May 2019 Date of orders: 01 May 2019 Decision date: 01 May 2019 Before: Rees J Decision: Transaction avoided: see paragraph [34] Catchwords: CORPORATIONS — Winding up — Voidable transactions — Insolvent transactions — Unfair preferences — Where loan to related entity — Loan repaid during relation-back period — Identification of true lender where conflicting evidence — Whether lender "creditor" of the company — Whether company insolvent at time of preference — Other elements of action admitted — Transaction avoided. Legislation Cited: Civil Procedure Act 2005 (NSW), s 100 Corporations Act 2001 (Cth), ss 127, 588FA, 588FC, 588FE, 588FF Income Tax Assessment Act 1936 (Cth), s 109N Cases Cited: Lewis (as liquidator of Doran Constructions Pty Ltd) v Doran (2005) 54 ACSR 410; [2005] NSWCA 243 Macquarie Health Corporation Limited v Federal Commissioner of Taxation (1999) 96 FCR 238; [1999] FCA 1819 Southern Cross Interiors Pty Ltd (in liq) v Deputy Commissioner of Taxation (2001) 53 NSWLR 213 at 224; [2001] NSWSC 621 section 100 of the Civil Procedure Act 2005 (NSW). Category: Principal judgment Parties: Ian Richard Hall and Stephen Ernest Vaughan in their capacity as liquidators of BBY Limited (Receivers and Managers Appointed) (in Liquidation) ACN 006 707 777 (First Plaintiff) BBY Limited (Receivers and Managers Appointed) (in Liquidation) (ACN 006 707 777) (Second Plaintiff) BBY Holdings Pty Ltd (Receivers and Managers Appointed) (in Liquidation) (ACN 075 187 432) (Third Plaintiff)