Payload Industries Pty Ltd v Melco Engineering Pty Ltd (Administrators Appointed)

FEDERAL COURT OF AUSTRALIA

Payload Industries Pty Ltd v Melco Engineering Pty Ltd (Administrators Appointed) [2025] FCA 701

File number(s):

NSD 598 of 2025

Judgment of:

YOUNAN J

Date of judgment:

26 June 2025

Catchwords:

CORPORATIONS – application to adjourn winding up of a company to enable a deed of company arrangement proposal to be considered at the second meeting of creditors – application granted

Legislation:

Corporations Act 2001 (Cth) ss 440A(2), 445D, 459A, 467(1)(b)

Insolvency Practice Schedule (Corporations) 2016 (Cth) s 75-41

Cases cited:

Deputy Commissioner of Taxation v Grand Platinum Pty Ltd [2024] FCA 568

Deputy Commissioner of Taxation v Scuttle Clothing Pty Ltd [2011] FCA 496

Mighty River International Ltd v Hughes [2018] HCA 38; (2018) 265 CLR 480

Sino Group International Ltd v Toddler Kindy Gymbaroo Pty Ltd [2023] FCAFC 110; (2023) 268 ACSR 311

Division:

General Division

Registry:

New South Wales

National Practice Area:

Commercial and Corporations

Sub-area:

Corporations and Corporate Insolvency

Number of paragraphs:

27

Date of hearing:

26 June 2025

Place:

Sydney

Counsel for the Plaintiff: 

ML Rose

Solicitor for the Plaintiff:

Addisons

Counsel for the Defendants:

A Psaltis with L Bullen

Solicitor for the Defendants: 

Colin Biggers & Paisley        

ORDERS

NSD 958 of 2025

IN THE MATTER OF MELCO ENGINEERING PTY LIMITED ACN 054 118 154

BETWEEN:

PAYLOAD INDUSTRIES PTY LTD ACN 611 121 610

Plaintiff

AND:

MELCO ENGINEERING PTY LIMITED ACN 054 118 154

First Defendant

FRANCIS JUDE O'NEILL

Second Defendant

ORDER MADE BY:	YOUNAN J
DATE OF ORDER:	26 JUNE 2025

THE COURT ORDERS THAT:

1.Pursuant to s 440A(2) of the Corporations Act 2001 (Cth), the hearing of the winding up application filed 22 April 2025, be adjourned to a date after 11 July 2025.

2.There be no order as to costs. 

Note:   Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

REASONS FOR JUDGMENT

YOUNAN J

1. The defendant (Melco Engineering Pty Ltd) and its administrators apply, under ss 440A(2) and 467(1)(b) of the Corporations Act 2001 (Cth), to adjourn the application to wind up Melco brought by the plaintiff (Payload Industries Pty Ltd) on 22 April 2025.  The application is supported by three affidavits of Francis O’Neill, sworn 19 June 2025, 20 June 2025 and 26 June 2025 (the latter two were filed on 26 June 2025).  Mr O’Neill is one of the administrators appointed to the defendant. 

2. Until around May 2024, Melco was a locally owned and operated steel fabrication and engineering business in Queensland.  Following a contract dispute with a third party, and ensuing proceedings in the Supreme Court of Queensland (Supreme Court Proceeding), Melco entered administration.  Its administrators (Francis O’Neill and David Stimpson) were appointed on 4 June 2025.  The first meeting of creditors was held on 16 June 2025.

3. The originating process seeks to have Melco wound up pursuant to s 459A of the Corporations Act for failing to comply with a statutory demand in the sum of $185,194.27, issued to it…