One Corporate Trust Services Ltd v MLSP Assets Pty Ltd in its capacity as trustee for the MLSP Assets Trust

One Corporate Trust Services Ltd initiated proceedings against MLSP Assets Pty Ltd in its capacity as trustee for the MLSP Assets Trust. The dispute concerns the registration of a security interest under a general security deed, which was intended to secure obligations under a loan note subscription agreement. The registration under the Personal Property Securities Act 2009 (Cth) was incomplete, failing to disclose the identity of the grantor by reference to the Australian Business Number (ABN) of the trust. The grantor is now in voluntary administration, and the applicant sought an extension of time to perfect the security interest under section 588FM of the Corporations Act 2001 (Cth).

The legal issues before the court were whether the incomplete registration could be remedied by an extension of time and whether the failure to disclose the identity of the grantor by reference to the ABN triggered the "later time" provisions under section 588FL(2)(b)(iv) of the Corporations Act. The court found that the failure to disclose the ABN constituted a significant defect in the registration and triggered the later time provisions, allowing for an extension of time. Given that the application was made before the critical time, the court granted the extension, fixing a new deadline for registration.

The court issued several orders, including an abridged time for service of the originating process and confidentiality orders regarding certain documents. The most significant order was fixing 11.59 pm on 19 April 2022 as the new time for the applicant to register the security interest on the Personal Property Securities Register. The court also reserved the right for any liquidator, administrator, or deed administrator appointed to the defendant to apply to discharge or vary this order under certain conditions. The orders were designed to provide the applicant with the necessary time to perfect the security interest while ensuring the rights of other stakeholders are protected.