CITATION  NSWSC 21
JUDGE/S BRERETON J
Alleasing Pty Limited leased equipment to OneSteel, and made PPSR registrations by reference to OneSteel’s ABN rather than its ACN. OneSteel went into administration.
The court held that Alleasing’s interests had vested in OneSteel. The registrations were defective as they were not made against the ACN, and the defect rendered the registrations ineffective under s165(b), as they could not have been discovered by a search against the ACN. The court also considered them ineffective as ‘seriously misleading’ under s164(1)(a). It was irrelevant that the administrators in fact had discovered them by a search against the ABN.
The court also dismissed Alleasing’s arguments that vesting gave rise to an acquisition of property other than on just terms contrary to s51(xxxi) of the Constitution, consistently with White v Spiers Earthworks Pty Ltd  WASC 139, and also noting that vesting under s267 did not involve the grantor taking property of the secured party but, rather, the consequence of an incident to which all PPS leases were subject.
Finally, Alleasing applied under Corporations Act s588FM to fix a later time for registration. The court refused. An extension under s 588FM could only save a security interest from vesting under s588FL where registration occurred after the time required by s588FL(2)(b) but before the ‘critical time’ at which administrators were appointed, not (as had occurred here) where registration had not occurred at all by the critical time. And it could only save a security interest from vesting under s588FL, not (as had occurred here) from vesting under s267 of the PPSA.
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.