This case involved a judicial challenge to the rejection of a proof of debt by Deed Administrators of a company under a DOCA. The proof of debt was lodged by liquidators, asserting an entitlement to the payment of a sum as a result of an alleged uncommercial transaction under s.588FB of the Corporations Act 2001. Martin J upheld the Deed Administrators argument that the proof of debt was invalid because an asserted voidable transaction is not a provable debt. Martin J also found that the relevant transaction was not, in any event, uncommercial.
Stewart Webster appeared for the Deed Administrators instructed by Clayton Utz.
The judgment is available here.