Morton as Liquidator of MJ Woodman Electrical Contractors Pty Ltd v Metal Manufacturers Pty Limited [2021] FCAFC 228 (16 December 2021) (Allsop CJ, Middleton and Derrington JJ)


Catchwords:


CORPORATIONS – question reserved for consideration of the Full Court pursuant to s 25(6) of the Federal Court of Australia Act 1976 (Cth) – whether set-off under s 553C(1) of the Corporations Act 2001 (Cth) (Act) available to the defendant against the plaintiff’s claim as liquidator for the recovery of an unfair preference under s 588FA of the Act – effect of a preference, nature of the preference action, and consequences of the success of such an action in Australian insolvency law – nature of mutuality – nature and history of set-off prior to and following the Harmer Report – set-off not available against the recovery of an unfair preference – requisite mutuality not present – right to the recovery of the preference is a right of the liquidator and not the company, in the liquidator’s own right for the benefit of all creditors and the administration of the estate under the terms of the relevant statutory regime