Rural Security Holdings Pty Limited v Equititrust Limited

FEDERAL COURT OF AUSTRALIA

Rural Security Holdings Pty Limited v Equititrust Limited [2011] FCA 512

Citation:	Rural Security Holdings Pty Limited v Equititrust Limited [2011] FCA 512
Parties:	RURAL SECURITY HOLDINGS PTY LIMITED v EQUITITRUST LIMITED
File number(s):	NSD 558 of 2011
Judge:	EMMETT J
Date of judgment:	6 May 2011
Legislation:	Corporations Act 2001 (Cth) ss 459P, 467
Date of hearing:	3 May 2011 and 6 May 2011
Place:	Sydney
Division:	GENERAL DIVISION
Category:	No catchwords
Number of paragraphs:	32
Counsel for the plaintiff:	Mr B. Levet
Solicitor for the plaintiff:	Ronayne Lawyers
Solicitor for the defendant:	Mr D. Tucker of Tucker & Cowen Solicitors

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION	NSD 558 of 2011

BETWEEN:	RURAL SECURITY HOLDINGS PTY LIMITED Plaintiff
AND:	EQUITITRUST LIMITED Defendant

JUDGE:	EMMETT J
DATE OF ORDER:	6 MAY 2011
WHERE MADE:	SYDNEY

THE COURT ORDERS THAT:

1.The originating process be dismissed.

2.The plaintiff notify the Australian Securities and Investments Commission as soon as practicable, and in any event no later than midday on 9 May 2011, of the making of order 1.

3.The plaintiff pay the defendant’s costs of the proceeding.

4.The defendant file and serve written submissions on costs no later than 5pm on 10 May 2011.

5.The plaintiff file and serve written submissions in reply no later than 5pm on 12 May 2011.

6.The proceeding be listed for the determination of costs at 9.30am on Friday, 13 May 2011.

Note:Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
The text of entered orders can be located using Federal Law Search on the Court’s website.

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION	NSD 558 of 2011

BETWEEN:	RURAL SECURITY HOLDINGS PTY LIMITED Plaintiff
AND:	EQUITITRUST LIMITED Defendant

JUDGE:	EMMETT J
DATE:	6 MAY 2011
PLACE:	SYDNEY

REASONS FOR JUDGMENT

1. On 3 May 2011, Rural Security Holdings Pty Limited (the Plaintiff) commenced a proceeding by way of originating process, seeking an order that the defendant, Equititrust Limited (the Company), be wound up pursuant to s 459P of the Corporations Act 2001 (Cth) (the Corporations Act). Section 459P provides that any one or more of a number of persons having certain relationships with a company may apply to the Court for the company to be wound up in insolvency. Relevantly, s 459P(1)(b) provides that a creditor of a company may apply to the Court for the company to be wound up in insolvency, even if the creditor is a secured creditor or is only a contingent or prospective creditor. Under s 459P(2), an application by a person who is a creditor only because of a contingent or prospective debt may be made only with the leave of the Court.

2. The Company, by amended notice of motion filed on 4 May 2011, seeks dismissal of the proceeding under s 467(1)(a) of the Corporations Act. Under s 467(1)(a), on hearing…