Bloc (ACT) Pty Ltd v Crafted Capitol Pty Ltd

Bloc (ACT) Pty Ltd sought to wind up Crafted Capitol Pty Ltd (Capitol) in insolvency. Bloc obtained a judgment against Capitol under the Building and Construction Industry (Security of Payment) Act 2009 (ACT). The primary legal issue was whether the court should wind up Capitol in insolvency. The court was required to determine if the presumption of insolvency arising from the unpaid judgment debt was rebutted and whether there were any discretionary reasons to avoid winding up Capitol. The court considered the policy of the SOP Act which requires payment prior to final determination of rights. The court found that Capitol was presumed to be insolvent and there was no evidence to rebut that presumption. The court also found that there were no sufficient discretionary reasons to avoid winding up Capitol. The court made an order for the winding up of Capitol and restrained Crafted Central Pty Ltd from dealing with its assets for a period of 28 days to allow the liquidator to assess the position.