In the matter of Hunter Valley Foods Pty Ltd

Hunter Valley Foods Pty Ltd was wound up and a liquidator was appointed. A creditor claimed that the company had made an unfair preference to another creditor and sought a declaration to that effect. The other creditor sought to have the Court decline to exercise jurisdiction in the proceedings on the basis that it did not have jurisdiction and that the Court should decline to exercise jurisdiction as the case was weak. The Court considered the jurisdictional issue, and whether the Court should decline to exercise its jurisdiction in the proceedings. The Court held that it had jurisdiction as the cause of action arose in New South Wales. The Court further held that the case was not weak enough to warrant summary dismissal. The Court was also satisfied that the payment in question was not an unfair preference as it fell outside the scope of section 588F. The Court dismissed the application to decline jurisdiction and ordered that the liquidator pay the creditor the amount claimed.