Albarran v Prescription Healthcare

[2005] NSWSC 347

CITATION:	Albarran v Prescription Healthcare [2005] NSWSC 347
HEARING DATE(S):	8 April 2005
JUDGMENT DATE :	8 April 2005
JURISDICTION:	Equity
JUDGMENT OF:	Campbell J
DECISION:	Convening period extended

CATCHWORDS:	CORPORATIONS - voluntary administration - application to extend convening period under section 439A(6) Corporations Act 2001 (Cth) - available where validity of appointment of administrators in question - desirability of an order extending convening period to a fixed date rather than to a date ascertainable by inquiring whether other events have occurred
LEGISLATION CITED:	Corporations Act 2001 (Cth)
PARTIES:	Richard Albarran - First Plaintiff Geoffrey McDonald - Second Plaintiff Prescription Healthcare Limited (Administrators Appointed) - First Defendant Penplaza Medical Centre Pty Ltd (Administrators Appointed) - Second Defendant Penplaza Medical Holdings Pty Ltd (Administrators Appointed) - Third Defendant Digital Diagnostic Holdings Pty Ltd (Administrators Appointed) - Fourth Defendant Digital Diagnostic X-Ray Pty Ltd (Administrators Appointed) - Fifth Defendant DDX Holdings (Penrith) Pty Ltd (Administrators Appointed) - Sixth Defendant Lifespan Medical Imaging Pty Ltd (Administrators Appointed) - Seventh Defendant Body Scan Australia Pty Ltd (Administrators Appointed) - Eighth Defendant Lifespan Medical Imaging (Brisbane) Pty Ltd (Administrators Appointed) - Ninth Defendant Full Body Scan Pty Ltd (Administrators Appointed) - Tenth Defendant Total Body Scan Pty Ltd (Administrators Appointed) - Eleventh Defendant Gold Coast Healthcare Limited (Administrators Appointed) - Twelfth Defendant Lifespan Medical Imaging (Gold Coast) Pty Ltd (Administrators Appointed) - Thirteenth Defendant
FILE NUMBER(S):	SC 2332/05
COUNSEL:	S Gallant, solicitor - Plaintiffs
SOLICITORS:	Nash O'Neill Tomko Lawyers - Plaintiffs

LOWER COURT JURISDICTION:

IN THE SUPREME COURT
OF NEW SOUTH WALES
EQUITY DIVISION
EXPEDITION LIST

CAMPBELL J

FRIDAY 8 APRIL 2005

2332/05 RICHARD ALBARRAN & ANOR v PRESCRIPTION HEALTHCARE LIMITED (ADMINISTRATORS APPOINTED) & ORS

JUDGMENT – Ex Tempore

1 HIS HONOUR: This is an application to extend the convening period of 13 corporations. Those corporations are ones concerning which there is an alleged appointment of administrator. The validity of the appointment of the administrator is the subject of proceedings in the Court. That set of proceedings has been set down for hearing on an urgent basis on 12 and 13 April 2005. The hearing which will take place on that day is a hearing which relates to a question upon which the validity of the appointment of the administrator turns.

2 The convening period of the administration is likely to expire, in relation to all of the companies, on a date which is either 28 days after 16 March or 28 days after 18 March 2005. There are these different dates, because the administrators were purported to be appointed to the companies on different dates.

3 It is appropriate, in these circumstances, to extend the convening period for a short time. It is done so that the administrators are not under statutory obligations to call meetings of creditors, under section 439A Corporations Act 2001 (Cth), while their own standing is in question.

4 It had been submitted that an order should be made extending the convening period to “5 days after the final determination” of the proceedings which are set for hearing next week. I think it is not desirable, concerning a matter of company administration which has effects for people who are not parties to the litigation, to have an order extending the convening period to a time which cannot be ascertained by simply reading the order. In my view it is preferable to have a fixed date when the convening period would end. If it turns out that an extension is needed, then it can be applied for.

5 Without prejudice to any question of whether the plaintiffs are validly appointed as administrator of the first to thirteenth defendants, order that the period within which the plaintiffs are required to convene meetings of the creditors of the first to thirteenth defendants under section 439A be extended to and including 20 April 2005.

6 I make an order that the order be entered forthwith.

7 I grant liberty to restore the matter before the Corporations Judge or the Duty Judge on two days notice.

8 Reserve the costs of the present application.

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