The NSW Supreme Court has confirmed what we expected would be
the result in Forge Group Power Pty Limited (in
liquidation)(receivers and managers appointed) v General Electric
International Inc – the failure by General Electric to
register on the PPSR has cost them their very expensive generator
turbines.
The case relates to a written contract for Rental of Power
Generation Equipment and Supply of Associated Services
("Lease") between Forge Power and General Electric
International Inc (GE) under which GE agreed to
rent some Turbines to Forge Power for a fixed term.
It was common ground that the PPSA establishes a Register of
Personal Property Securities on which security interests may be
"perfected" by registering an instrument called a
financing statement, and that primacy is given to the Register. In
this case no financing statement for the Lease had been registered
by GE.
