| IN THE SUPREME COURT OF VICTORIA | Not Restricted |
AT MELBOURNE
COMMERCIAL COURT
CORPORATIONS LIST
S ECI 2018 02285
BETWEEN:
| C & M ROOFING PTY LTD (ACN 137 883 473) | First Appellant |
| COHALAN & MITCHELL PTY LTD (ACN 168 857 805) | Second Appellant |
| and | |
| COHALAN & MITCHELL ROOFING PTY LTD (IN LIQUIDATION) (ACN 081 599 528) | First Respondent |
| STEPHEN JOHN MICHELL (IN HIS CAPACITY AS LIQUIDATOR OF COHALAN & MITCHELL ROOFING PTY LTD (IN LIQUIDATION) (ACN 081 599 528)) | Second Respondent |
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JUDGE: | Sifris J |
WHERE HELD: | Melbourne |
DATE OF HEARING: | Determined on the papers |
DATE OF JUDGMENT: | 1 May 2020 |
CASE MAY BE CITED AS: | In the matter of Cohalan & Mitchell Roofing (in liquidation) (ACN 081 599 528) |
MEDIUM NEUTRAL CITATION: | [2020] VSC 222 |
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CORPORATIONS – Winding up – Application for extension of time for filing voidable transaction proceedings – Change of Liquidator – Extension of time not granted – Consideration of delay in appropriate cases to include the entire period of delay and not only the period from when liquidator appointed – Unreasonable delay on behalf of Liquidator – Corporations Act 2001 (Cth) s 588FF(3)(b) – Fortress Credit Corporation (Australia) II Pty Ltd v Fletcher (2015) 254 CLR 489, applied – BP Australia Ltd v Brown & Ors [2003] NSWCA 216, applied – Sub nom, Brown (2003) 58 NSWLR 322 – Re Clarecastle Pty Ltd (in liq) (2011) 255 FLR 435 applied.
PRACTICE AND PROCEDURE – Appeal from Associate Justice – Appeal relating to the exercise of discretion – Supreme Court (Corporations) Rules 2013 (Vic) r 16.5 – Robinson Helicopter Company Inc v McDermott (2016) 331 ALR 550, applied – House v King (1936) 55 CLR 499, applied.
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APPEARANCES: | Counsel | Solicitors |
| For the Applicants | Mr M Galvin QC Mr J Kohn | Frenkel Partners |
| For the Respondents | Mr G Moffatt | Mills Oakley Lawyers |
HIS HONOUR:
A Introduction
This is an appeal from a decision of an Associate Judge (Reasons)[1] relating to whether the respondents (plaintiffs) ought to have been granted an extension of time for commencing any voidable transaction proceedings against the appellants (defendants). In his Reasons, the Associate Judge made an order pursuant to s 588FF(3)(b) of the Corporations Act 2001 (Cth) (Act) extending the time for filing any voidable transaction proceedings against the appellants to 19 June 2020.
[1]In the matter of Cohalan & Mitchell Roofing Pty Ltd (in liquidation) (Supreme Court of Victoria, Efthim AsJ, 14 June 2019) (Reasons).
The appellants contend that the Associate Judge erred in making that order.
B Background[2]
[2]The background, much of which is uncontroversial, is adopted from the Reasons of the Associate Judge.
Cohalan & Mitchell Roofing Pty Ltd (ACN 081 599 528) (in liquidation) (the Company) conducted a residential roofing business from February 1998 to 1 January 2015. Doug Mitchell was the director, secretary and 50% shareholder of the Company. Russell Cohalan owned the other 50%. On 20 November 2015,…
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- AGLC
- In the matter of Cohalan & Mitchell Roofing (in liquidation) (ACN 081 599 528) [2020] VSC 222
- Case
- [2020] VSC 222
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the court was whether the delay in bringing the proceedings was unreasonable, thereby warranting an extension of the statutory time limit. The court also had to consider the appropriate period of delay to assess reasonableness, and whether it should include the entire period of delay or only the period from when the liquidator was appointed. The court applied established principles from previous cases such as Fortress Credit Corporation (Australia) II Pty Ltd v Fletcher and BP Australia Ltd v Brown, which set out the criteria for assessing unreasonable delay.
In deciding the application, the court found that the liquidator had unreasonably delayed in bringing the proceedings. The entire period of delay, including the period before the liquidator was appointed, was considered in determining the reasonableness of the delay. The court concluded that the delay was unreasonable and denied the application for an extension of time. The appeal from the Associate Justice's decision was also dismissed, as the court found no error in the exercise of discretion by the Associate Justice. The court's decision was consistent with established principles in cases such as Robinson Helicopter Company Inc v McDermott and House v King.
The final orders of the court were that the application for an extension of time to file voidable transaction proceedings was dismissed, and the appeal from the Associate Justice's decision was also dismissed. The liquidator was not granted the extension of time sought, and the statutory time limits for bringing the proceedings remained in effect.
Orders
Orders of the court
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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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