Promoseven Pty Ltd v Markey, in the matter of Bluechip Development Corporation (Cairns) Pty Ltd (in liquidation) (Receivers and Managers Appointed)

Promoseven Pty Ltd has appealed against the decision of the receivers and liquidators of Bluechip Development Corporation (Cairns) Pty Ltd to reject, in part, its proof of debt. The appeal arises out of the corporate collapse of Bluechip, which was wound up in the Supreme Court of Queensland on 9 December 2011. The Federal Court of Australia has jurisdiction over the matter pursuant to section 1321 of the Corporations Act 2001, which provides for appeals from decisions of receivers, liquidators, and administrators of companies. The core issue in this appeal is whether the liability referred to in the proof of debt is a true liability of the company enforceable against it. The court must determine this issue afresh on the merits of the claim, taking into account all relevant evidence.

The court considered whether the receivers and liquidators were correct in rejecting part of Promoseven's proof of debt. The court examined the Joint Venture Agreement (JVA) between Bluechip, Prime Project Development (Cairns) Pty Ltd, and Promoseven Pty Ltd, as well as the terms of the mortgage securing the debt. The court also considered the principle that an appeal under section 1321 of the Corporations Act is not an exercise of the appellate jurisdiction of the court but rather an exercise of original jurisdiction. The court found that the receivers and liquidators' decision was informed by an error of law and was otherwise unreasonable, leading to the rejection of part of Promoseven's proof of debt. The court allowed the appeal and remitted the matter to the receivers and liquidators for reconsideration.