This week's TGIF considers a refusal by the Federal
Court to declare void or terminate a DOCA on the grounds of alleged
prejudice & injustice or due to omissions in the
administrator's report to creditors.
Background
R Developments Pty Ltd (the Builder) operated a
residential construction business and entered into a contract for
the construction of a residential property in 2012.
Shortly after construction commenced, a dispute arose under the
construction contract. The Builder purported to terminate the
contract. However that termination was later found to be invalid
and the owners were awarded damages for the Builder's
abandonment of the contract.
A subsequent appeal from that decision was dismissed with costs
with the owner of the property later commencing a winding up
application in respect of the unpaid judgment debt. Before the
winding up application was heard, the Builder appointed an
administrator.
