Rexel Electrical Supplies Pty Ltd v Morton (as liquidator of South East Queensland Machinery Manufacturing and Distribution (Mining No. 1) (in liq)  QCA 235
In brief: An Appeal from a decision of the District Court of Queensland largely based upon evidentiary grounds concerning an unfair preference action, inclusive of: the good faith defence; the running account defence; the liquidators reliance upon books and records to determine solvency.
Taylor David represented the successful Respondent Liquidator in this Appeal.
Despite what many within the insolvency industry have viewed with controversy, the set-off applied in the original District Court decision was not raised or addressed by the Court of Appeal. It appears that is is only a matter of time before a superior court reconsiders the application of set-off to an unfair preference claim under section 553C of the Corporations Act 2001.
Grounds of Appeal
The grounds of appeal were broadly based upon claims the learned Trial Judge erred in:
All points of appeal failed largely for the following reasons:
The appeal was dismissed with costs.
The original decision of the District Court remains unchanged, namely:
Author: Scott D. Taylor
For a copy of the full judgement, please click here.