Centurian Constructions Pty Ltd v Beca Developments Pty Ltd (in Liquidation) and Pselletes v Beca Developments Pty Ltd (in Liquidation)

[1999] NSWCA 457

NSW Court of Appeal

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Interrogate

Catchwords

1. Corporations
2. › Winding up
3. › Liquidation
4. › Mutual dealings
5. › Set-off under s 86 Bankruptcy Act 1966
6. › Whether statute-barred debt available as set-off
7. › Limitation Act 1969 (NSW), s 14(1), s 63(1)
8. › Bankruptcy Act 1966 (Cth), s 86
1. Corporations
2. › Winding up
3. › Liquidation
4. › Mutual dealings
5. › Set-off under s 86 Bankruptcy Act 1966
6. › Guarantee given before liquidation
7. › Payment by guarantor after winding up
8. › Whether contingent liability grounds set-off once payment made
9. › Bankruptcy Act 1966 (Cth), s 86
1. Limitation of Actions
2. › Extinction of right and title
3. › Set-off
4. › Whether statute-barred debt may be relied upon as set-off in liquidation
5. › Limitation Act 1969 (NSW), s 63(1)
1. Evidence
2. › Fresh evidence on appeal
3. › Special grounds
4. › Whether evidence could have been obtained with reasonable diligence
5. › Supreme Court Act 1970 (NSW), s 75A(7), (8)

Quick Take

A debt extinguished by s 63(1) of the Limitation Act 1969 (NSW) cannot be relied upon as a set-off in a company liquidation under s 86 of the Bankruptcy Act 1966. However, where a guarantee is given before the date of liquidation, payment by the guarantor after winding up creates a debt that may be set off against the company's claims, applying Day & Dent Constructions v North Australian Properties.