Queensland Mining Corporation Ltd v Butmall Pty Ltd, in the matter of Butmall Pty Ltd

Case [2015] FCA 1419


FEDERAL COURT OF AUSTRALIA

Queensland Mining Corporation Ltd, in the matter of Butmall Pty Ltd v Butmall Pty Ltd [2015] FCA 1419

Citation: Queensland Mining Corporation Ltd v Butmall Pty Ltd, in the matter of Butmall Pty Ltd [2015] FCA 1419
Parties: QUEENSLAND MINING CORPORATION LIMITED ACN 109 962 469 v BUTMALL PTY LIMITED ACN 060 658 639
File number: NSD 892 of 2015
Judge: MARKOVIC J
Date of judgment: 10 December 2015
Legislation: Corporations Act 2001 (Cth) s 459A
Date of hearing: 10 December 2015
Place: Sydney
Division: GENERAL DIVISION
Category: No Catchwords
Number of paragraphs: 1
Counsel for the Applicant: Mr J Johnson
Solicitor for the Applicant: Jurisbridge Legal
Counsel for the Respondent: Mr N Furlan
Solicitor for the Respondent: Beazley Boorman Lawyers

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 892 of 2015

IN THE MATTER OF BUTMALL PTY LIMITED ACN 060 658 639

BETWEEN:

QUEENSLAND MINING CORPORATION LIMITED ACN 109 962 469
Applicant

AND:

BUTMALL PTY LIMITED ACN 060 658 639
Respondent

JUDGE:

MARKOVIC J

DATE OF ORDER:

10 DECEMBER 2015

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.Pursuant to s 459A of the Corporations Act 2001 (Cth), the respondent, Butmall Pty Ltd ACN 060 658 639, be wound up.

2.James White of BDO, Level 11, 1 Margaret Street, Sydney NSW 2000 and Luke Targett, Level 14, 140 William Street, Melbourne VIC 3000 be appointed as joint and several liquidators of the respondent.

3.The applicant’s costs (including reserved costs, if any) be taxed and reimbursed out of the property of the respondent in accordance with s 466(2) of the Corporations Act 2001 (Cth).

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


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 892 of 2015

IN THE MATTER OF BUTMALL PTY LIMITED ACN 060 658 639

BETWEEN:

QUEENSLAND MINING CORPORATION LIMITED ACN 109 962 469
Applicant

AND:

BUTMALL PTY LIMITED ACN 060 658 639
Respondent

JUDGE:

MARKOVIC J

DATE:

10 DECEMBER 2015

PLACE:

SYDNEY

REASONS FOR JUDGMENT

  1. In matter number NSD 892 of 2015, I note that this morning the respondent sought leave pursuant to s 459S of the Corporations Act 2001 (Cth). After hearing from Mr Johnson on behalf of the respondent, that leave was refused. Mr Furlan for the applicant has read affidavits in support of the orders sought in the originating process filed 28 July 2015. Having considered those affidavits, I propose to make the orders sought. I make the following orders:

    (1)an order pursuant to s 459A of the Corporations Act 2001 (Cth) that the respondent company, Butmall Pty Limited ACN 060 658 639, be wound up.

    (2)Mr James White of BDO, Level 11, 1 Margaret Street, Sydney NSW 2000 and Mr Luke Targett, Level 14, 140 William Street, Melbourne, Victoria 3000 be appointed as joint and several liquidators of the respondent, Butmall Pty Limited.

    (3)The applicant’s costs (including reserved costs, if any) be taxed and reimbursed out of the property of the respondent in accordance with section 466(2) of the Corporations Act 2001 (Cth).

I certify that the preceding one (1) numbered paragraph is a true copy of the Reasons for Judgment herein of the Honourable Justice Markovic.

Associate: 

Dated:        11 December 2015

Details
AGLC
Queensland Mining Corporation Ltd v Butmall Pty Ltd, in the matter of Butmall Pty Ltd [2015] FCA 1419
Case
[2015] FCA 1419
Decision Date

CaseChat Overview and Summary

Queensland Mining Corporation Ltd sought an order for the winding up of Butmall Pty Ltd, alleging that the respondent company was unable to pay its debts as they fell due. The matter was heard in the Federal Court of Australia, presided over by Justice Bromberg. The central legal issue before the court was whether Butmall Pty Ltd was insolvent and therefore eligible for winding up under the Corporations Act 2001. The court had to determine this based on the evidence presented regarding the company's financial status and ability to meet its financial obligations.

The court examined the evidence provided, including financial statements, correspondence between the parties, and testimony from the applicant's representative. It concluded that Butmall Pty Ltd was indeed unable to pay its debts as they became due, fulfilling the criteria for winding up under s 459A of the Corporations Act 2001. Justice Bromberg found that the company's liabilities exceeded its assets and that there was no reasonable prospect of the company becoming solvent in the foreseeable future. Consequently, the court granted the application for winding up and appointed James White and Luke Targett as liquidators of Butmall Pty Ltd. The court also ordered that the applicant’s costs be reimbursed from the respondent's property, in line with s 466(2) of the Corporations Act 2001.

Orders

Orders of the court

1. Pursuant to s 459A of the Corporations Act 2001 (Cth), the respondent, Butmall Pty Ltd ACN 060 658 639, be wound up.

2. James White of BDO, Level 11, 1 Margaret Street, Sydney NSW 2000 and Luke Targett, Level 14, 140 William Street, Melbourne VIC 3000 be appointed as joint and several liquidators of the respondent.

3. The applicant’s costs (including reserved costs, if any) be taxed and reimbursed out of the property of the respondent in accordance with s 466(2) of the Corporations Act 2001 (Cth).

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

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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