TGIF 13 October 2023 - Liquidators default judgment dismissed to avoid risk of inconsistent findings

In the matter of Bleecker Property Group Pty Ltd (In Liquidation) [2023] NSWSC 1071, appears to be the first published case that considers the question of whether an order can be made under section 588FF(1)(a) of the Corporations Act 2001 (Cth) by way of default judgment against one defendant where there are multiple defendants in the proceedings.

Key takeaways

• To grant a default judgment against a defendant, in order to clawback a voidable transaction, a court must be satisfied that the transactions are voidable (including that the relevant company was insolvent at the time).
  
  
• If such default judgment is sought against one of multiple defendants, there is a risk that this judgment will be inconsistent with the finding in the ultimate proceedings, including where the company is found to be solvent at the relevant time. Such a risk could bring the administration of justice into disrepute because the default judgment would have been entered against the