Aussie Victoriaplant Hire Pty Ltd v Esanda Finance Corporation Ltd
[2007] VSCA 121212 FLR 56
Aussie Victoriaplant Hire Pty Ltd
vEsanda Finance Corporation Ltd
Judges:
Maxwell P
Chernov J
Nettle J
Ashley J
Neave J
Subject References:
Corporations
Winding-Up
Insolvency
Statutory Demand
Application to Set Aside Statutory Demand Refused By Master
Appeal to Judge From Master'S Decision
Time for Compliance With Statutory Demand Ex-Tended By Master But Expired Before Hearing of Appeal From Master'S Decision
Whether Power to Extend Time May Be Exercised After Expiry of Time for Compliance
Corporations Act 2001 Ss 70, 459F, 459G.
Precedents
National Legislation
Corporations Act 2001
Decisions of Other Courts At First Instance
Dictum of Another Intermediate Court of Appeal
Whether Decisions Should Be Followed.
Practice and Procedure
Leave to Appeal
Whether Order Dismissing Appeal From Refusal to Set Aside Statutory Demand An 'Order in An Interlocutory Application'
Supreme Court Act 1986 S 17A(4)(B).
Legislative References:
Corporations Act 2001 - 70; 459F; 459G
Supreme Court Act 1986 - 17A(4)(B)
Bankruptcy Act 1966 - 41(6A)
Limitation of Actions Act 1958 - 23A
Supreme Court Act 1970 (NSW) - 101(2)(p)
Bankruptcy Act 1906 - 41(6A)
County Court Act 1958 (Vic) - 74(2D)
Acts Interpretation Act 1901 - The Act
Judgment date: 14 June 2007
Order
Orders Accordingly.
Counsel for the appellant:
Mr J M Selimi
Counsel for the respondent:
Dr C L Pannam
QCand
Mr N A Frenkel
Solicitors for the appellant:
Starnet Legal
Solicitors for the respondent:
Gadens Lawyers
RSC 77.05(7).
[2003] VSCA 85.
The application was heard by Maxwell P and Neave JA.
(2004) 10 VR 277 at 281 (Callaway JA).
(1966) 117 CLR 423 at 443.
The Court here referred to Licul v Corney (1976) 180 CLR 213 ; Carr v Finance Corporation of Australia Limited (No 1 ) (1981) 147 CLR 246 ; Little v State of Victoria [1998] 4 VR 596 at 597-8; Bienstein v Bienstein (2003) 30 Fam LR 488 at 493; Re Luck (2003) 78 ALJR 177 at 178.
[1994] 2 VR 290.
Ibid 296-7.
(1997) 79 FCR 288 .
Ibid 286.
A-Pak Plastics Pty Ltd v Merlone Pty Ltd (1995) 17 ACSR 176 at 180; Asian Century Holdings Inc v Fleuris Pty Ltd [2000] WASCA 59, [7], [57]; Keylink Physical Care Pty Ltd v Ergoline (Aust) Pty Ltd [1999] SASC 483, [20]-[27]; Gabstone Pty Ltd v Gumina Investments Pty Ltd [2000] WASC 149, [17]; Infact Consulting Pty Ltd v Kyle House Pty Ltd [2005] NSWSC 1092.
(1995) 17 ACSR 176.
A-Pak Plastics (1995) 17 ACSR 176 at 180 (Sheller JA); see also AMP General Insurance Ltd v VWA [2006] VSCA 236 (Maxwell P and Neave JA).
[2000] WASCA 59, [7].
Note that this also concerned an order setting aside a statutory demand. See also Terranora Group Management Pty Ltd v Terranora Lakes Country Club Ltd (in liq ) (Unreported, Supreme Court of New South Wales, Santow J, 1 December 1997) [5].
That is, the demand could not be "used to establish a presumption of insolvency" under s 459C(2) while the order is in force. The decision in A-Pak Plastics was reversed by legislation in NSW -- see Supreme Court Act 1970 (NSW) s 101(2).
Licul v Corney (1976) 180 CLR 213 at 219-220 (Barwick CJ), 225 (Gibbs J); Debis Financial Services (Aust) Pty Ltd v Allied Bellambi Collieries Pty Ltd (2000) 35 ACSR 371.
Mibor [1994] 2 VR 290 at 296-297.
See for example Hall v Nominal Defendant (1966) 117 CLR 423 at 443 and other cases cited in LexisNexis Butterworths, Civil Procedure Victoria , Vol 1 (at 5688.101), I64.01.440.
Salter Rex & Co v Ghosh [1971] 2 QB 597 at 601.
David Grant & Co Pty Ltd v Westpac Banking Corporation (1995) 184 CLR 265 .
Ibid 270.
Section 459C(2)(a).
David Grant (1995) 184 CLR 265 at 277 (Gummow J).
[2001] VSC 286.
[2003] VSCA 85.
With whom Chernov and Eames JJA agreed.
[2003] VSCA 85, [8]-[9] (emphasis added).
[2006] VSC 306, [9] (footnotes omitted).
Ibid [10].
See [52]-[58] below.
As noted in [19] above, the company had earlier applied, unsuccessfully, to a single judge for an extension of time. There was no appeal from that decision.
(1996) 22 ACSR 51 at 53; followed by Kenny J in G & J Gears Australia Pty Ltd v Brobo Group Pty Ltd [2006] FCA 330, [47].
Livestock Traders (1996) 22 ACSR 51 at 54; Graywinter Properties Pty Ltd v Dyer (1997) 15 ACLC 302 at 306 (Ryan J); G & J Gears Australia Pty Ltd v Brobo Group Pty Ltd [2006] FCA 330, [48]. See also Acts Interpretation Act 1901 (Cth) s 33(1).
David Grant (1995) 184 CLR 265 at 277.
Vista (1997) 79 FCR 288 . See further [35]-[36] below.
Weiss v R (2005) 224 CLR 300 , [9]; Stingel v Clark (2006) 80 ALJR 1339, [26]-[27] (Gleeson CJ, Callinan, Heydon and Crennan JJ), [43] (Gummow J), [117] (Kirby J); Central Bayside General Practice Assn Ltd v Commissioner of State Revenue (2006) 80 ALJR 1509, [81]-[84] (Kirby J) and the cases there cited.
Weiss v R (2005) 224 CLR 300 , [31] and the cases there cited. Fleming v R (1998) 197 CLR 250 at 256 also referred to.
Smith v R (1994) 181 CLR 338 at 346 (Mason CJ, Dawson, Gaudron and McHugh JJ).
[1910] AC 409 at 420.
See also BP Refinery Pty Ltd v Hastings Shire Council (1977) 53 ALJR 20 at 25; Director-General of Education v Suttling (1987) 162 CLR 427 at 433.
David Grant (1995) 184 CLR 265 at 275-276 (Gummow J), citing Owners of " Shin Kobe Maru " v Empire Shipping Co Inc (1994) 181 CLR 404 at 421. See also Australasian Memory Pty Ltd v Brien (2000) 200 CLR 270 at 279; Mansfield v Director of Public Prosecutions for Western Australia (2006) 80 ALJR 1366, [10].
(2006) 80 ALRJ 1366, [10] (Gleeson CJ, Gummow, Kirby, Hayne and Crennan JJ).
(1992) 174 CLR 178 at 205.
(1997) 79 FCR 288 .
Ibid 294-295.
(1997) 79 FCR 288 at 295 (emphasis added).
See also A-Pak Plastics Pty Ltd v Merhone Pty Ltd (1995) 17 ACSR 176 at 180-1 (Sheller JA); Infact Consulting Pty Ltd v Kyle House Pty Ltd [2005] NSWSC 1092, [2].
David Grant (1995) 184 CLR 265 at 278.
(1996) 22 ACSR 51 at 54-5 (emphasis added).
(1997) 15 ACLC 302.
Ibid 306.
David Grant (1995) 184 CLR 265 at 275-6; Livestock Traders (1996) 22 ACSR 51 at 54.
Graywinter Properties (1997) 15 ACLC 302 at 306.
David Grant (1995) 184 CLR 265 at 275.
Australian Law Reform Commission, General Insolvency Inquiry , Report No 45 (1988) Part 4.
As to which, see Stingel v Clark (2006) 80 ALJR 1339; cf General Motors Acceptance Corp Australia v Southbank Traders Pty Ltd [2007] HCA 19, [32].
Australian Law Reform Commission, above n 56, [137].
Ibid [148]-[149].
David Grant (1995) 184 CLR 265 at 279.
Ibid.
[2003] VSCA 85 [9].
See Commissioner for Railways (NSW) v Cavanough (1935) 53 CLR 220 ; Commonwealth of Australia v McCormack (1984) 155 CLR 273 at 276-7; A-Pak Plastics (1995) 17 ACSR 176 at 180. See generally DM Gordon " Effect of Reversal of Judgment on Acts Done between Pronouncement and Reversal " (1958) 74 LQR 517 .
(2000) 74 ALJR 884.
King v Henderson [1898] AC 720 at 728.
James v Abrahams (1981) 51 FLR 16 .
(1981) 54 FLR 253 .
Guss v Johnstone (2000) 74 ALJR 884 at 893-894.
Australian Securities Commission v Marlborough Gold Mines Ltd (1993) 177 CLR 485 at 492.
Avco Financial Services Ltd v Abschinski [1994] 2 VR 659 at 663 and 668-669; R v Tate [1996] 1 VR 662 at 666.
Burwood Retail (2002) 170 FLR 76 .
[2006] FCA 330.
cf Australian Securities Commission v Marlborough Gold Mines Ltd (1993) 177 CLR 485 at 492; Deputy Commissioner of Taxation v Woodhams (1998) 148 FLR 230 at 231 (Callaway JA).
Shakespeares Pie Co Australia Pty Ltd v Multipye Pty Ltd [2005] NSWSC 1338 [28]-[30]; Marthas T Market Pty Ltd v Reliance Financial Services Pty Ltd [2002] NSWSC 931, [4].
Australian Beverage Distributors Pty Ltd v Cranswick Premium Wines Pty Ltd (2004) 50 ACSR 544 at 546.
See above [21].
Buckland Products Pty Ltd v Deputy Commissioner of Taxation [2001] VSC 286.
(2002) 170 FLR 76 .
Buckland Products Pty Ltd v Deputy Commissioner of Taxation [2001] VSC 286, [5], [9], [11].
Ibid [12].
Burwood Retail (2002) 170 FLR 76 , [33].
Ibid [20].
Ibid [22].
Ibid [43].
(1997) 25 ACSR 675.
Ibid 701.
Ibid.
CSR Ltd v Eddy (2005) 226 CLR 1 at 11 (Gleeson CJ, Gummow and Heydon JJ).
(1997) 79 FCR 288 .
Ibid 296-7.
(1996) 22 ACSR 636.
Ibid 638.
Ibid.
G & J Gears [2006] FCA 330 [46].
Ibid [49].
[2003] VSCA 85.
(1966) 117 CLR 423 at 443. See also Dodoro v Knighting (2004) 10 VR 277 at 281 (Callaway JA).
Hall v Nominal Defendant , 440.
Ibid, 443.
See Licul v Corney (1976) 180 CLR 213 at 225 (Gibbs J); Carr v Finance Corporation of Australia Ltd (No 1 ) (1981) 147 CLR 246 at 248 (Gibbs CJ); Little v State of Victoria [1998] 4 VR 596 at 597-8 (Callaway JA).
[1994] 2 VR 290 at 296-7. To like effect, see also Vista Commercial Construction Pty Ltd v Deputy Commissioner of Taxation (1997) 25 ACSR 285 at 286.
See, eg, Niemann v Electronic Industries Ltd [1978] VR 431.
[1999] 3 VR 331 at 335.
Buckland , [8]-[9].
Ibid, [9].
(1997) 187 CLR 384 at 408 (Brennan CJ, Dawson, Toohey and Gummow JJ) (citations omitted).
See also Newcastle City Council v GIO General Ltd (1997) 191 CLR 85 at 99-100 (Toohey, Gaudron and Gummow JJ), 112-3 (McHugh J), in which the court had regard to the explanatory memorandum that disclosed the particular mischief that the legislation was enacted to remedy.
Law Reform Commission Report No 45, General Insolvency Inquiry.
Harmer Report, [144]; Explanatory Memorandum, Corporate Law Reform Act 1992, [678].
Equuscorp Pty Ltd v Perpetual Trustees WA Ltd (1997) 25 ASCR 675 at 693 (" Equuscorp ") (French, Kiefel and Sundberg JJ).
Ibid.
Explanatory Memorandum, [665]. See also David Grant & Co Pty Ltd v Westpac Banking Corporation [1995] 2 VR 495 at 506 (Smith J).
Explanatory Memorandum, [689].
(1995) 184 CLR 265 at 270.
Section 459E(2)(c).
Section 459G.
Section 459F(1), (2)(b).
Section 459S.
Section 459F(2)(a)(ii).
Section 459C(2).
David Grant , 275-8.
See also Graywinter Properties Pty Ltd v Dyer (1996) 15 ACLC 302 at 306 (" Graywinter ") (Ryan J).
(1996) 22 ACSR 51 at 54.
Ibid.
Graywinter , 306.
(1997) 79 FCR 288 (Burchett, Hill and Emmett JJ).
Ibid 296-7.
French, Kiefel and Sundberg JJ.
Equuscorp , 701. Although their Honours did not say this in terms, given their reference to the cases which they cited in support of the conclusion that "[p]rovided an application for an extension is brought before the expiry of the period fixed for compliance, that period can be further extended even if the s 459G application has been determined", including Livestock and Graywinter , I think it is plain enough that, as Kenny J recognised in G & J Gears Australia Pty Ltd v Brobo Group Pty Ltd [2006] FCA 330 (" Gears "), [49]-[51], their Honours meant that no such extension could be granted after the period in question has expired.
Gears , [49]-[52].
Subs 7 was an original provision of the Act; subs (6A) was inserted by the Bankruptcy Amendment Act 1980.
(1981) 37 ALR 211 . At the time of the decision the introductory words of subs (6A) were: "Where, before the expiration of the time fixed by the Court or the Registrar for compliance with the requirements of a bankruptcy notice -- ...".
Streimer , 214.
Ibid.
Ibid, 214-5.
Ibid, 215 (citations omitted).
The third member of the court considered that the impugned order was made within the court's inherent power to vary its own orders so as to give them the intended effect.
(2000) 171 ALR 598 .
Ibid 610-611.
See, eg, Brennan v Comcare (1994) 50 FCR 555 at 572 (Gummow J).
In relation to bankruptcy proceedings, the statutory demand that was anticipated was materially different to that relevant to corporate insolvency. Thus, the requirement that the creditor obtain a final judgment or order against the debtor was retained in the draft legislation recommended by the Report. Thus the statutory demand was defined as a demand in writing that is in respect of a final judgment or order and requires the addressee to pay the debt within 21 days after service.
[1997] 2 VR 49.
Licul v Corney (1976) 180 CLR 213 at 225; Carr v Finance Corporation of Australia Ltd (No 1 ) (1981) 147 CLR 246 at 248 (Gibbs CJ), 253-4 (Mason J).
(1995) 120 FLR 277 .
Asian Century Holdings Inc v Fleuris Pty Ltd [2000] WASCA 59 [7], [57].
(1987) 9 NSWLR 374.
Dousi v Colgate Palmolive Pty Ltd (1987) 9 NSWLR 374 at 379F et seq .
[1994] 2 VR 290.
[2005] NSWSC 1092.
(1966) 117 CLR 423 at 440.
[2003] VSCA 85.
[2005] NSWCA 24.
Which was inserted into the Act shortly after the decision in A-Pak , to overcome the effect of the decision.
[2000] WASCA 59.
[2000] WASCA 59 [6].
Unreported, Full Court of the Supreme Court of WA; Library No 960538, 5 September 1996.
cf Hall v Nominal Defendant (1966) 117 CLR 423 at 440.
Dousi v Colgate Palmolive Pty Ltd (1987) 9 NSWLR 374 at 379F et seq.
(1981) 54 FLR 253 at 258, which was referred to with approval by the High Court in Guss v Johnstone (2000) 74 ALJR 884.
(1960) 102 CLR 347 at 351.
(1981) 54 FLR 253 at 258-9.
(1995) 184 CLR 265 at 271.
See Gordon v Tolcher (2006) 231 ALR 582 at 589 [37], concerning the time limit imposed by s 588FF.
Ibid [32].
(1996) 22 ACSR 51; (1996) 14 ACLC 1682.
Bourne v Keane [1919] AC 815 at 874; Babaniaris v Lutony Fashions Pty Ltd (1987) 163 CLR 1 at 29.
(1997) 80 FCR 296 .
(1993) 177 CLR 485 at 492.
[1994] 2 VR 290 at 296-297.
See Rule 43.03 (2) of Ch 1 of the Rules.
[1997] 2 VR 49.
(1995) 120 FLR 277 (New South Wales Court of Appeal).
[2000] WASCA 59.
[1999] SASC 483, [25]. Relevantly agreeing with Nettle JA, I need say nothing about Infact Consulting Pty Ltd v Kyle House Pty Ltd [2005] NSWSC 1092, another case in which there was a refusal to set aside a demand at first instance.
(2001) 4 VR 619 at 627 [22].
In addition to his formal affidavit sworn 8 March 2006. See s 459E(3) of the Act.
In addition, on 26 July 2006 Mr Strangio swore a second affidavit. It pertained to the application to further extend time for compliance, and added nothing to the substance of the matter.
Consistently with the nature of an application to set aside a statutory demand, cross-examination would rarely be appropriate.
See, for example, Moyall Investment Services Pty Ltd v White (1993) 12 ACSR 320 at 324 (Ryan J, Federal Court).
Mibor [1994] 2 VR 290 at 295 (Hayne J).
(1994) 12 ACSR 785 at 787.
See s 459J.
It represented the total amount allegedly payable on the 11 discrete finance contracts.
That is, other than as to the alleged defects in the statutory demand.
So to conclude does not mean that there must inevitably be grant of extension of time only because an appeal, or an application for leave to appeal, has been launched.
[2003] VSCA 85.