Ford (Administrator), in the matter of the Pas Group Limited (Administrators Appointed) v Scentre Management Limited

Ford (Administrator), in the matter of the Pas Group Limited (Administrators Appointed) v Scentre Management Limited was a case before the Federal Court of Australia. The administrators of the PAS Companies sought a declaration that they were not liable for the payment of rent owed to Scentre during the period in which the companies were in administration, referred to as the "standstill period". The administrators argued that they were not personally liable for the rent, as per section 443B(2) of the Corporations Act 2001 (Cth), and that the rent would not fall within section 556(1)(a) in a liquidation. The Court was required to determine whether the administrators' liability for rent during the standstill period fell within section 556(1)(a) of the Act. The Court considered the principles derived from the case of Re Lundy Granite Co; Ex parte Heavan (1871) LR 6 Ch App 462, which established that an administrator is not personally liable for debts incurred by the company during the standstill period. The Court found that the administrators were not personally liable for the rent during the standstill period and that the rent did not fall within section 556(1)(a) in a liquidation. The Court's reasoning was based on the fact that the administrators were not personally liable for the rent during the standstill period, as per section 443B(2) of the Act. The Court further found that the rent did not fall within section 556(1)(a) in a liquidation, as the administrators were not personally liable for the rent during the standstill period. The Court made a declaration that the administrators were not liable for the payment of rent owed to Scentre during the standstill period. The further hearing of the proceeding was relisted on a date to be fixed.