Spedley Securities Notice of Motion filed 8 May 2000

The proceedings were initiated by Spedley Securities Pty Ltd, as liquidator of a company, against various parties including certain directors and a financial institution. The nature of the dispute was the recovery of money paid as a preference under the Corporations Law, specifically focusing on whether the liquidator was entitled to claim post-liquidation interest on amounts paid under a deed of settlement. The case was heard in the Supreme Court of New South Wales.

The central legal issues addressed by the court were whether the liquidator was entitled to claim for post-liquidation interest on moneys paid under a deed of settlement, and if the releases contained in the deeds of settlement precluded such claims. Additionally, the court had to determine the appropriate rate of post-liquidation interest. The court needed to interpret statutory provisions regarding preference payments and post-liquidation interest under the Corporations Law, and assess the effect of the releases in the deeds of settlement.

In its reasoning, the court found that the liquidator's entitlement to post-liquidation interest was not precluded by the releases in the deeds of settlement, as these did not explicitly exclude claims for such interest. The court held that the liquidator could still pursue the claim for post-liquidation interest on the moneys paid under the deeds of settlement. As for the rate of interest, the court determined it to be in line with the standard rate prescribed by statute. The court concluded that the liquidator was entitled to the statutory post-liquidation interest from the date of payment until the date of judgment.

The final orders of the court were that the liquidator was entitled to post-liquidation interest at the statutory rate from the date of payment until the date of judgment. The court also directed that the defendants bear the costs of the proceeding, which included the liquidator's costs of the appeal.