Judicial management not ground for denial of obligations
62V Judicial management not ground for denial of obligations
This section applies if a body corporate is party to a contract, whether the proper law of the contract is:
Australian law (including the law of a State or Territory); or
law of a foreign country (including the law of part of a foreign country).
None of the matters mentioned in subsection (3) allows the contract, or a party to the contract (other than the body corporate), to do any of the following:
deny any obligations under the contract;
accelerate any debt under the contract;
close out any transaction relating to the contract;
enforce any security under the contract.
The matters are as follows:
the making by the Federal Court of an order that the body corporate be placed under judicial management;
the commencement of the judicial management of the body corporate;
if the body corporate is a member of a relevant group of bodies corporate:
the making by the Federal Court of an order that another member of the group be placed under judicial management; or
the commencement of the judicial management of another member of the group.
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