BACKGROUND
Cant v Mad Brothers Earthmoving ('Cant') is a
Court of Appeal decision of the Supreme Court of Victoria, which
considered unfair preference claims made to an unsecured
creditor.
Eliana Construction and Developing Group Pty Ltd (in
liquidation) ('Eliana') incurred a debt to
Mad Brothers
Earthmoving Pty Ltd ('Mad Brothers')
totaling $236,952.31.
Prior to Eliana being wound up, the parties agreed that Eliana
would pay Mad Brothers $220,000.00
('Payment') in full and final settlement
of the debt. The Payment was made to Mad Brothers by a third-party,
Rock Development & Investments Pty Ltd ('Rock
Development') using a local loan facility.
Subsequently, Anthony Robert Cant was appointed as liquidator of
Eliana. Cant then commenced proceedings against Mad Brothers,
claiming the Payment to Mad Brothers was an unfair preference
payment and consequently void.
