In the matter of J & Lee Property Investment Group Pty Ltd (in liq) [2019] NSWSC 1337

Supreme Court New South Wales

Medium Neutral Citation: In the matter of J & Lee Property Investment Group Pty Ltd (in liq) [2019] NSWSC 1337 Hearing dates: 17 September 2019 Decision date: 03 October 2019 Jurisdiction: Equity - Corporations List Before: Black J Decision: Declaration sought by Liquidator and Receivers not made. Catchwords: CORPORATIONS – winding up – priorities – determination as to enforceability of charge –where charge expressed to cease to have effect "on the bankruptcy of the person" – whether charge over company's interests in property ceased to have effect when company placed in liquidation.

WORDS AND PHRASES – "bankruptcy" – Criminal Assets Recovery Act 1990 (NSW) s 31(2)(c). Legislation Cited: - An Act against Such Persons as Do Make Bankrupt, 34 & 35 Henry 8, c4 (1542) - An Act for the Relief of Insolvent Debtors in England, 53 Geo 3, c102 (1812) - Bankruptcy Act 1887 (NSW) s 109 - Bankruptcy Act 1924 (Cth) - Bankruptcy Act 1966 (Cth) ss 5(1), 43(2), 58, 58A(1) - Civil Procedure Act 2005 (NSW) s 101 - Companies Act 1874 (NSW) - Confiscation of Proceeds of Crime Act 1989 (NSW) ss 83, 83(1) - Constitution s 51(xvii) - Corporations Act 2001 (Cth) ss 479(3), 511; Sch 2 s 90-15 - Criminal Assets Recovery Act 1990 (NSW) Pt 3 Div 2; ss 3, 10A, 27, 27(1), 28C(6), 31, 31(1), 31(2), 31(2)(c) - Customs Act 1901 (Cth) s 243J - Customs Amendment Act 1979 (Cth) - Drug Trafficking (Civil Proceedings) Act 1990 (NSW) s 31 - Insolvency Act 1841 (NSW) - Insolvent Debtors Act, 5 & 6 Vict, c116 (1842) - Interpretation Act 1987 (NSW) s 21(1) - Joint Stock Companies Act, 11 & 12 Vict, c 45 (1848) - Joint Stock Companies Act, 19 & 20 Vict, c 47 (1856) s 67 - Joint Stock Companies Winding-Up Act, 7 & 8 Vict, c111 (1844) s 2 - Partnership Act 1892 (NSW) s 33(1) - Proceeds of Crime Act 1987 (Cth) ss 50, 50(2), 50(2)(d), 90, 90(2), 90(2)(d) - Supreme Court Act 1970 (NSW) s 75 Cases Cited: - Alcan (NT) Alumina Pty Ltd v Commissioner of Territory Revenue [2009] HCA 41; (2009) 239 CLR 27 - Anderson Group Pty Ltd (in liq) v Davies [2001] NSWSC 356; (2001) 53 NSWLR 401 - Certain Lloyd's Underwriters v Cross [2012] HCA 56; (2012) 248 CLR 378 - CIC Insurance Ltd v Bankstown Football Club Ltd [1997] HCA 2; (1997) 187 CLR 384 - Cooper Brookes (Wollongong) Pty Ltd v Federal - Commissioner of Taxation [1981] HCA 26; (1981) 147 CLR 297 - Crane Distribution Ltd v Hunter [2003] NSWSC 120 - Ex parte Shore; Re Royal British Bank (1857) 26 LJ Bank NS 17 - Federal Commissioner of Taxation v Consolidated Media Holdings Ltd [2012] HCA 55; (2012) 250 CLR 503 - Hooker-Rex Pty Ltd v Commissioner of Taxation (1969-70) 123 CLR 71 - McCausland v Surfing Hardware International Holdings Pty Limited (No 2) [2014] NSWSC 163 - New South Wales v Commonwealth (Work Choices Case) [2006] HCA 52; (2006) 229 CLR 1 - Pickles v Gratzon [2002] NSWSC 688; (2002) 55 NSWLR 533 - Project Blue Sky v Australian Broadcasting Authority [1998] HCA 28; (1998) 194 CLR 355 - Re Glengrant Civil Pty Ltd (in liq) [2017] NSWSC 843 - Re James; Clutterbuck v James (1890) 62 LT 454 Re Karaganison (Construction) Pty Ltd [1982] Qd R 695; (1982) 6 ACLR 627 - Re Octaviar Administration Pty Ltd (in liq) [2017] NSWSC 1556 - Re Reidy; eChoice Ltd (admins apptd) [2017] FCA 1582 - Re Walley as administrators of Poles and Underground Pty Ltd (admin apptd) [2017] FCA 486 - Taylor v Centennial Newstan Pty Ltd [2009] NSWCA 276; (2009) 76 NSWLR 79 - Thiess v Collector of Customs [2014] HCA 12; (2014) 250 CLR 664 Texts Cited: - I Fletcher, The Law of Insolvency (Sweet & Maxwell, 3rd ed, 2002) - Law Reform Commission, General Insolvency Inquiry (Australian Government Publishing Service, 1988) Category: Procedural and other rulings Parties: Peter Hillig as liquidator of J & Lee Property Investment Group Pty Ltd (in liq) and Peter Hillig and Michael John Morris Smith as joint and several receivers and managers of the J & Lee Group Trust (Applicants) New South Wales Crime Commission (Respondent) Representation: Counsel: S Golledge (Applicants) K Stern (written submissions only)/D Hume (Respondent)