Event and Time
Event Description
In a case involving Cullen Group Australia Pty Ltd, the applicants initiated proceedings against 29 respondents for declarations that certain payments made to them by the first applicant constituted unfair preferences due to the company's insolvency during the period from June 23, 2016, to December 22, 2016.
Application and Claims
- The applicants sought declarations under sections 588FA and 588FF of the Corporations Act 2001 (Cth) regarding the unfair preference payments made by Cullen Group Australia Pty Ltd.
- A preliminary question was posed to determine the insolvency of the company during the specified period, which was ordered by the court before the principal proceedings could be tried.
- The court aimed to ascertain whether Cullen Group Australia Pty Ltd was indeed insolvent during the specified dates to support claims of unfair preference payments.
Judicial Decisions
The court determined: 1. Cullen Group Australia Pty Ltd was insolvent from June 23, 2016, to December 22, 2016. 2. With respect to the third and fifth respondents, the costs of determining the preliminary question would be the applicants’ costs in the cause. 3. All other respondents were ordered to pay the applicants’ costs regarding the preliminary question.
Dispute Points and Legal Basis
Dispute Points
- Claimants' Arguments:
- The applicants provided the liquidator's report as evidence, asserting that the company was unable to meet its debts as they fell due during the specified period. - They relied on the legal framework of the Corporations Act concerning insolvency and unfair preferences.
- Respondents' Arguments:
- The third and fifth respondents contended that any cost order against them should limit to costs in cause since they had eventually admitted the insolvency after reviewing the liquidator's evidence. - The other respondents either did not contest the insolvency or did not outline their position clearly by the time of the court's decision.