Cardinia Nominees Pty Ltd


Application under Corporations Act s588FM to fix a later time for registration in respect of security interests granted by Inika, where registration was made 5 days late for reasons including uncertainty as to which party should make the registration. 

The court made the order. Unlike Re Barclays Bank plc [2012] NSWSC 1095, there was insufficient evidence of the financial strength of Inika to justify dispensing with a condition reserving the right of insolvency administrators to apply to discharge if insolvency occurred within 6 months, and so the order was made subject to that condition.

The order was also conditional on it having no effect on the priority of another creditor, BMW Australia Finance Limited, which had made a registration on the same date as Cardinia.

The summary of the pertinent points in this legal case update has been provided by Steve Pemberton, Lawyer and Consultant, as an extract from his digest of PPSA cases.