In the matter of Azmac Pty Limited (in liquidation) [2020] NSWSC 204

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Azmac Pty Limited (in liquidation) [2020] NSWSC 204 Hearing dates: 26 February 2020, last submissions received 2 March 2020. Date of orders: 10 March 2020 Decision date: 10 March 2020 Jurisdiction: Equity - Corporations List Before: Rees J Decision: Plaintiff declared as a secured creditor of the second defendant within the meaning of section 51E of the Corporations Act 2001 (Cth) pursuant to section 90-15 of the Insolvency Practice Schedule. Catchwords: CORPORATIONS – review liquidator's rejection of proof of debt – procedure - principles

'Secured creditor' – 'security interest' - section 51E of the Corporations Act 2001 (Cth)

EVIDENCE - Jones v Dunkel – whether necessary witness – whether witness in one's 'camp'

EVIDENCE – business records – evidence of provenance

CONTRACTS – email agreement – lack of formality - formation – whether agreement with natural persons or corporations – commencement date of agreement before incorporation of party – post-contractual conduct

EQUITABLE ASSIGNMENT – chose in action – novation

EQUITABLE CHARGE – agreement to create a charge – agreement performed – implication of grant of charge from consent to lodge caveat Legislation Cited: Corporations Act 2001 (Cth), ss 9, 51, 51A, 51E, 1321, 90-15 of the Insolvency Practice Schedule (Corporations), Schedule 2 Evidence Act 1995 (NSW), s 48(1)(e)(i) Personal Property Securities Act 2009 (Cth) Cases Cited: Aged Care Services Pty Ltd v Kanning Services Pty Ltd (2013) 86 NSWLR 174; [2013] NSWCA 393 Air Great Lakes Pty Ltd v KS Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309 Alma Hill Constructions Pty Ltd (ACN 064 077 292) v Onal [2007] VSC 86 Apand Pty Limited v The Kettle Chip Co (1994) 52 FCR 474 Aqua-Marine Marketing Pty Ltd v Pacific Reef Fisheries (Aust) Pty Ltd (No 4) (2011) 194 FCR 479; [2011] FCA 578 Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540 Australian Securities Investments Commission v Rich (2005) 216 ALR 320; [2005] NSWSC 417 Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153; [2001] NSWCA 61 Brown, Shipley and Co v Kough (1885) 29 Ch D 848 Browne v Dunn (1893) 6 R 67 Carminco Gold & Resources Ltd v Findlay & Co Stockbrokers (Underwriters) Pty Ltd (2007) 243 ALR 472; [2007] FCAFC 194 Cinema Plus Ltd v Australia and New Zealand Banking Group Ltd [2000] NSWCA 195; (2000) 49 NSWLR 513 Comptroller of Stamps (Victoria) v Howard-Smith [1936] HCA 12; (1936) 54 CLR 614 Cubillo v Commonwealth of Australia (No 2) (2000) 174 ALR 97; [2000] FCA 1084 Deputy Commissioner of Taxation v Bluebottle UK Ltd [2006] NSWCA 360; (2006) 68 NSWLR 558 Electricity Generation Corporation v Woodside Energy Ltd (2014) 306 ALR 25; [2014] HCA 7; (2014) 251 CLR 640 El-Saafin v Franek (No 3) [2019] VSC 155 Fabre v Arenales (1992) MVR 303; (1992) 27 NSWLR 437 Franklins Pty Ltd v Metcash Trading Ltd [2009] NSWCA 407 Ghazal v Government Insurance of New South Wales (1992) 29 NSWLR 336 Hill v Esplanade Wollongong Pty Limited (subject to a deed of company arrangement) [2018] NSWSC 478 In the matter of Metal Storm Limited (in liquidation) (receivers and managers appointed) (No 2) [2019] NSWSC 1682 James Robert Coleman v Gai Hart-Hughes [2017] NSWSC 656 Johnston v McGrath (2008) 67 ACSR 169; [2008] NSWSC 639 Jones v Dunkel [1959] ALR 367; (1959) 32 ALJR 395; (1959) 101 CLR 298 Lym International Pty Limited v Marcolongo (2011) 15 BPR 29,465; [2011] NSWCA 303 Marsden v Amalgamated Television Services Pty Limited [2001] NSWSC 510 Masters v Cameron [1954] HCA 72; 91 CLR 353 Moneymen Pty Ltd v Federal Commissioner of Taxation (1990) 91 ATC 4019; (1990) 97 ALR 265 Mushroom Composters Pty Ltd v IS & DE Robertson Pty Ltd [2015] NSWCA 1 National Australia Bank Ltd v Rusu (1999) 47 NSWLR 309; [1999] NSWSC 539 National Provincial and Union Bank of England v Charnley [1924] 1 KB 431 Noonan v Martin (1987) 10 NSWLR 402 Norman v Federal Commissioner of Taxation [1964] ALR 131; (1963) 109 CLR 9 NT Power Generation Pty Ltd v Trevor (2000) 23 WAR 482; [2000] WASC 254 Pavlovic v Universal Music Australia Pty Ltd (2015) 90 NSWLR 605; [2015] NSWCA 313 Payne v Parker [1976] 1 NSWLR 191 Queensland Phosphate Pty Limited v Korda (as joint and several liquidators of Legend International Holdings Inc (in liq)) [2017] VSCA 269 Re ACN 096 281 542 Limited (in liq) [2018] VSC 425 Re Jay-O-Bees Pty Limited; Rosseau Pty Limited v Jay-O-Bees Pty Limited [2004] NSWSC 818; (2004) 50 ACSR 565 Re St Gregory's Armenian School Inc (2015) 109 ACSR 27; [2015] NSWSC 1465 Roberts v Investwell Pty Ltd (in liq) (2012) 88 ACSR 689; [2012] NSWCA 134 Salomon v A Salomon & Co Ltd [1897] AC 22 Scruples Imports Pty Ltd v Crabtree & Evelyn Pty Ltd (1983) 1 IPR 315 Shepherd v Federal Commissioner of Taxation [1966] ALR 969; (1965) 113 CLR 385 Swiss Bank Corporation v Lloyd's Bank Limited [1982] AC 584 Ta Lee Investment Pty Limited v Antonios (2019) 19 BPR 39153; [2019] NSWCA 24 Tanning Research Laboratories Inc v O'Brien [1990] HCA 8; (1990) 169 CLR 332 Taylor v Johnson [1983] HCA 5; (1983) 151 CLR 422 Troncone v Aliperti (1994) 6 BPR 13,291 Walker v Bradford Old Bank (1884) 12 QBD 511 William Brandt's Sons & Co v Dunlop Rubber Co Ltd [1905] AC 454 Texts Cited: P Young, C Croft and M Smith, On Equity (2009) Category: Principal judgment Parties: Stylequity Advisory (Australia) Pty Limited (Plaintiff) Schon Condon as liquidator of Azmac Pty Limited (First Defendant) Azmac Pty Limited (in liquidation) (Second Defendant) Representation: Counsel: Mr DS Weinberger (Plaintiff) Mr DC Eardley (Defendants)