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ARTICLE · 11 APRIL 2023

Contractors beware: Court concludes that deed preserves payment claims

Coleman Greig Lawyers
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The case confirms an avenue for insolvent companies to legally pursue payment claims from debtors.

AustraliaReal Estate and Construction
Rebecca Watters
Rebecca Watters
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Overview

The Supreme Court has determined in a recent matter that the restriction on companies in liquidation from enforcing payment claims under section 32B of the Building and Construction Industry Security of Payment Act (SOP Act) does not extend to insolvent companies generally.

What is Section 32B?

Section 32B of the SOP Act operates to prevent companies in liquidation from issuing and enforcing payment claims, as well as applying for an adjudication determination.

Individuals who receive payment claims from companies in liquidation are therefore not required to comply with the usual obligations under the SOP Act including to review, respond and raise any disputes in respect to a claim within the specified time frames.

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