Hastie Group Limited (in liq) v Multiplex Constructions Pty Ltd (Formerly Brookfield Multiplex Constructions Pty Ltd) (No 3)

• Jurisdiction: Australia Federal only
• Judgment Date: 02 November 2022
• Neutral Citation: [2022] FCA 1280
• Date: 02 November 2022
• Court: Federal Court

FEDERAL COURT OF AUSTRALIA

Hastie Group Limited (in liq) v Multiplex Constructions Pty Ltd (Formerly Brookfield Multiplex Constructions Pty Ltd) (No 3) [2022] FCA 1280

File number:	VID 1277 of 2017VID 237 of 2022
Judgment of:	MIDDLETON J
Date of judgment:	2 November 2022
Catchwords:	BANKRUPTCY AND INSOLVENCY – action for debt brought by companies in liquidation and liquidator against numerous respondents – matters of principle common to various claims determined in this ‘liability trial’ – principles of collective enforcement and pari passu distribution – Corporations Act 2001 (Cth) (Corporations Act) Sch 2 s 90-15 – liquidator seeking various directions that he is justified and acting reasonably in the future conduct of the winding up of the companies – directions not to be made having regard to determination of matters of principle ; CORPORATIONS – s 553C of Corporations Act – statutory set-off – whether parties have claims to which s 553C may apply – whether mutuality satisfied with respect to Deed of Cross-Guarantee – whether s 553C operates automatically without lodging of proofs of debt – held: s 553C operates automatically ; CORPORATIONS – “bank guarantees” – autonomy principle – whether companies in liquidation have proprietary interests in proceeds of bank guarantees drawn down by respondents – whether drawdowns of bank guarantees voided by ss 437D or 468 of Corporations Act – whether respondents otherwise restrained from retaining bank guarantee proceeds – held: drawdowns of bank guarantees not voided and retention of proceeds not otherwise restrained ; CORPORATIONS – winding up by the court – ss 459A and 467B of Corporations Act – application for order for winding up by the court where company already being wound up voluntarily – held: application refused ; LIMITATION OF ACTIONS – whether applicants’ claims sufficiently pleaded by way of initial originating process and concise statement within limitation period – held: applicants’ claims sufficiently pleaded and not statute-barred if within limitation period
Legislation:	Corporate Law Reform Act 1993 (Cth) Corporations Act 2001 (Cth) Corporations Regulations 2001 (Cth) Federal Court of Australia Act 1976 (Cth) Insolvency Practice Rules (Corporations) 2016 (Cth) Judiciary Act 1903 (Cth) Personal Property Securities Act 2009 (Cth) Treasury Laws Amendment (2017 Enterprise Incentives No 2) Act 2017 (Cth)
Cases cited:	Arnold World Trading Pty Ltd v ACN 133 427 335 Pty Ltd[2010] NSWSC 1369; (2010) 80 ACSR 670 Australasian Conference Assoc Ltd v Mainline Constructions Pty Ltd (in liq) (1978) 141 CLR 335 Ayerst (Inspector of Taxes) v C & K (Construction) Ltd[1976] AC 167 Bass v Permanent Trustee Co Ltd(1999) 198 CLR 334 Brash Holdings Ltd (administrator appointed) v Katile Pty Ltd [1996] 1 VR 24 British Eagle International Airlines Ltd v Compagnie Nationale Air France [1975] 1 WLR 758 Caltex Oil (Australia) Pty Ltd v Best(1990) 170 CLR 516 Cambridge Gas Transportation Corp v Official Committee of Unsecured Creditors of Navigator Holdings plc[2007] 1 AC 508 Car Buyers Australia Pty Ltd v Australian Securities and Investments Commission[2020] FCA 599 Cargill International SA v Bangladesh Sugar and Food Industries Corp [1998] 1 WLR 461 Central Queensland Development Corporation Pty Ltd v Sunstruct Pty Ltd [2015] FCAFC 63; (2015) 231 FCR 17 Cinema Plus Ltd (admins apptd) v Australia and New Zealand Banking Group Ltd (2000) 35 ACSR 1; [2000] NSWCA 195 Clough v Oil & Natural Gas Corporation Ltd (No 3) [2007] FCA 8082 Commissioner of State Revenue (WA) v Placer Dome Inc (2018) 265 CLR 585 Commissioner of Taxation v Tull Reinforcing Pty Ltd (2006) 153 FCR 394 Commonwealth v Verwayen (1990) 170 CLR 394 Daewoo Shipbuilding & Marine Engineering Co Ltd v INPEX Operations Australia Pty Ltd[2022] NSWSC 1125 Day & Dent Constructions Pty Ltd (in liq) v North Australian Properties Pty Ltd(1982) 150 CLR 85 Electricity Generation Corporation v Woodside Energy Ltd(2014) 251 CLR 640 Federal Commissioner of Taxation v Linter Textiles Australia Ltd (In liq)(2005) 220 CLR 592 Fletcher Construction Australia Ltd v Varnsdorf Pty Ltd [1998] 3 VR 812 Foley v Hill(1848) 2 HL Cas 28 Forge, citing International Air Transport Association v Ansett Australia Holdings Ltd(2008) 234 CLR 151 Foskett v McKeown[2001] 1 AC 102 Franklin's Selfserve Pty Ltd v Federal Commissioner of Taxation(1970) 125 CLR 52 Freedom Foods Pty Ltd v Blue Diamond Growers[2021] FCAFC 86; (2021) 286 FCR 437 General Steel Industries Inc v Commissioner for Railways (NSW) (1964) 112 CLR 125 Gye v McIntyre(1991) 171 CLR 609 Hamersley Iron Pty Ltd v Forge Group Power Pty Ltd (in liq) (receivers and managers appointed) [2017] WASC 152; (2017) 52 WAR 90 Hamersley Iron Pty Ltd v Forge Group Power Pty Ltd (in liq) (Receivers and Managers appointed) [2018] WASCA 163; (2018) 53 WAR 325 Hastie Group Limited (in liq) v Multiplex Constructions Pty Ltd (Formerly Brookfield Multiplex Constructions Pty Ltd)[2020] FCA 1824 Hayes (Liquidator) v 5G Developments Pty Ltd, in the matter of 5G Developments Pty Ltd[2019] FCA 1541 Hiley v The Peoples Prudential Insurance Company (in liq) (1938) 60 CLR 468 Hocking v Director-General of National Archives of Australia (2020) 379 ALR 395; [2020] HCA 19 In re Exchange Securities Ltd (in liq)[1988] Ch 46 International Air Transport Association v Ansett Australia Holdings Ltd(2008) 234 CLR 151 King v Patrick Projects Pty Ltd [2016] FCA 1110 Lipkin Gorman v Karpnale Ltd[1991] 2 AC 548 Lordianto v Commissioner of the Australian Federal Police (2019) 266 CLR 273 Lucas Stuart v Hemmes Hermitage Pty Ltd[2010] NSWCA 283 McDonald v Dennys Lascelles Ltd (1933) 48 CLR 457 McIntyre v Gye(1990) 22 FCR 260 Miller v Race(1758) 1 Burr 452 Morton as Liquidator of MJ Woodman Electrical Contractors Pty Ltd v Metal Manufactures Pty Limited[2021] FCAFC 228; (2021) 402 ALR 387 MS Fashions Ltd v Bank of Credit & Commerce International SA (in liq) (No 2)[1993] Ch 425 Old Style Confections Pty Ltd v Microbyte Investments Pty Ltd (in liq)[1995] 2 VR 457 Osborne Computer Corp Pty Ltd (admin apptd) v Airroad Distribution Pty Ltd(1995) 37 NSWLR 382 Re Carter (as liquidator of New Tel Ltd (in liq)) (2003) 44 ACSR 661; [2003] NSWSC 128 Re Force Corp Pty Ltd (in liq)[2020] NSWSC 1842; (2020) 149 ACSR 451 Re Green (as liq of Australian Resources Ltd (in liq)) (2004) 52 ACSR 452; [2004] NSWSC 1095 Re Jay-O-Bees Pty Ltd (in liq)[2004] NSWSC 818; (2004) 50 ACSR 565 Re Lehman Brothers International (Europe) (in administration)...