Federal Court of Australia

Patel v Pleash (No 2) [2025] FCA 154

ORDERS

THE COURT DECLARES THAT:

1.    Pursuant to section 447C of the Corporations Act 2001 (Cth), the appointment of the First Defendant, on 2 December 2022, as the voluntary administrator of the Third Plaintiff was invalid.

THE COURT ORDERS THAT:

2.    The Second Defendant and the Third Defendant pay to the Third Plaintiff the sum of $108,875.10, as the loss and damage suffered by the Third Plaintiff as a consequence of the invalid appointment of the First Defendant, on 2 December 2022, as its voluntary administrator.

3.    Pursuant to section 51A of the Federal Court of Australia Act 1976 (Cth), each of the Second Defendant and the Third Defendant pay to the Third Plaintiff interest in the sum of $12,907.96, being calculated for the period from 1 October 2023 to 5 March 2025, inclusive.

4.    Pursuant to section 52 of the Federal Court of Australia Act, each of the Second Defendant and the Third Defendant pay to the Third Plaintiff interest on and from 5 March 2025.

5.    Pursuant to section 43 of the Federal Court of Australia Act, the First Defendant, the Second Defendant and the Third Defendant pay the costs of each of the Plaintiffs of and incidental to this proceeding.

6.    Pursuant to section 1322(4)(b) of the Corporations Act, the Australian Securities and Investments Commission rectify its register, forthwith, in relation to the Third Plaintiff with the effect that any and all references to the administration of the Third Plaintiff commencing on 2 December 2022 are removed.

7.    Pursuant to sections 178 and 182(4)(a) of the Personal Property Securities Act 2009 (Cth), the Registrar of Personal Property Securities register, forthwith, a financing change statement which has the effect of removing from the register the security interest registered by ILEND CAPITAL PTY LTD (ACN 616 336 835) against the property of the Third Plaintiff, registration number 202210310076005.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

REASONS FOR JUDGMENT

CHEESEMAN J:

1    On 14 February 2025, I delivered reasons for judgment in favour of the plaintiffs and made an order that the plaintiffs provide for my consideration short minutes of order to give effect to those reasons: Patel v Pleash [2025] FCA 77. On 24 February 2025, the plaintiffs provided proposed orders which I have considered in chambers.

2    There is a consequential issue that the plaintiffs now raise. It relates to the rectification of the Personal Property Securities Register (PPSR). On 24 February 2025 and 4 March 2025, the plaintiffs provided additional documents upon which they seek to rely in relation to the PPSR. I will mark these documents as exhibits in the proceeding. The first is an amendment demand for the purpose of s 178 of the Personal Property Securities Act 2009 (Cth) which was issued by Jubilee to iLend on 9 December 2024, requiring iLend to remove the security interest registered against the property of Jubilee within five business days. That demand has not been complied with by iLend. This is evidenced by a grantor search for Jubilee and a PPSR registration number search certificate, both dated 4 March 2025. On the basis of my findings in the primary judgment that iLend was not entitled to demand payment of the Brokerage Fee/Success Fee it follows that iLend’s PPSR registration does not relate to any security in respect of a debt owed by Jubilee to iLend. The plaintiffs thus seek an order that the PPSR should be corrected accordingly. I am satisfied that it is appropriate to make such an order.

3    The sum claimed for loss and damage arising from Mr Salim and iLend’s conduct, totalling $108,875.10, was not challenged. The plaintiffs have calculated pre-judgment interest under s 51A of the Federal Court of Australia Act 1976 (Cth) for the period from 1 October 2023, being the last initial commencement date of the leases referred to in the affidavit of Mr Patel dated 18 August 2023, to the date of these orders as being $12,907.96. I am satisfied that the plaintiffs are entitled to the amount sought and will order accordingly.

4    I will make orders substantially in the form sought by the plaintiffs which I am satisfied give effect to my earlier reasons.

Associate:

Dated:    5 March 2025