Crystal Creek Pty Ltd v Cairns City Council

Crystal Creek Pty Ltd sought to set aside a default judgment against Cairns City Council, which had been entered due to the Council's failure to respond to the claim. The primary dispute centred around whether certain company transactions were voidable under section 588FF of the Corporations Law, whether the claim constituted a liquidated demand, and whether monies paid in such voidable transactions could be reclaimed by liquidators even if they were suing in a representative capacity. The case also examined the applicability of Rule 283 of the Uniform Civil Procedure Rules 1999 in the context of Rule 16 of Schedule 1A of the same Rules.

The court needed to determine if it was satisfied that the company transaction in question was voidable under section 588FF, and if so, whether this meant the claim was a liquidated demand. The court also had to consider if the monies paid in the voidable transaction could be recovered by the liquidators, regardless of whether they were acting in a representative capacity. Additionally, the court examined whether the request for judgment under Rule 283 of the Uniform Civil Procedure Rules 1999 was applicable and if the Registrar could enter judgment under this rule in light of Rule 16 of Schedule 1A of the Rules.

In its reasoning, the court found that the transaction was indeed voidable under section 588FF. It concluded that the claim constituted a liquidated demand, and thus, the monies paid in the voidable transaction could be reclaimed by the liquidators. The court also held that the maxim expressio unius est exclusio alterius did not apply in this context, thereby allowing the request for judgment under Rule 283. However, the court found that the Registrar could not enter judgment under Rule 283 in light of Rule 16 of Schedule 1A of the Uniform Civil Procedure Rules 1999. Consequently, the default judgment was set aside, and the Council was granted leave to defend within 28 days. Crystal Creek Pty Ltd was ordered to pay the Council's costs of and incidental to the application.