Practitioners acting for liquidators seeking to recover debts recorded in company accounting software should note this decision's detailed synthesis of when courts will and will not infer a loan from book entries alone. The judgment confirms that where books are unchallenged, the defendant fails to appear or lead evidence, and the Jones v Dunkel rule applies, comparatively limited documentary evidence (Xero loan account entries) may suffice to establish a loan, particularly in small family companies. The alternative voidable transaction claim under s 588FDA provides a useful fallback where the loan inference is contested.
The full text is available to signed-in members, including the 2 later cases that cite this judgment.
1 of the 2 citing cases carry a classified treatment. How each court treated it is available to signed-in members.