Metal Manufactures Pty Limited v Morton

HIGH COURT OF AUSTRALIAKIEFEL CJ,GAGELER, GORDON, EDELMAN AND STEWARD JJMETAL MANUFACTURES PTY LIMITED  APPELLANTANDGAVIN MORTON AS LIQUIDATOR OF MJ WOODMAN ELECTRICAL CONTRACTORS PTY LTD (IN LIQUIDATION) & ANOR  RESPONDENTSMetal Manufactures Pty Limited v Morton[2023] HCA 1Date of Hearing: 12 October 2022Date of Judgment: 8 February 2023B19/2022ORDER1. Appeal dismissed. 2.The costs of this appeal be costs in the cause.On appeal from the Federal Court of AustraliaRepresentationJ T Gleeson SC with G P McNally SC and J W Pokoney for the appellant (instructed by Breene & Breene Solicitors)J D McKenna KC with P E O'Brien for the respondents (instructed by Taylor David Lawyers)Notice:  This copy of the Court's Reasons for Judgment is subject to formal revision prior to publication in the Commonwealth Law Reports.CATCHWORDSMetal Manufactures Pty Limited v MortonCorporations – Winding up – Insolvency – Set-off – Unfair preferences – Where appellant received payments from company within six-month period prior to winding up – Where liquidator of company sought to recover payments from appellant under s 588FF(1)(a) of Corporations Act 2001 (Cth) ("Act") as unfair preferences under s 588FA of Act – Where appellant owed separate and distinct debt by company – Whether set-off under s 553C(1) of Act available to appellant against liquidator's claim for recovery of unfair preferences.Words and phrases – "commencement of the winding up", "contingent right", "insolvency", "insolvent transaction", "liquidation", "liquidator's duties and powers", "mutual dealing", "mutuality", "pari passu principle", "set-off", "statutory scheme of liquidation", "unfair preference", "voidable transaction", "winding up".Corporations Act 2001 (Cth), ss 474, 477, 478,...