Ding Dong - Set-Off is Gone: Absolutely Set-Off is Definitely No Longer Available as a Defence to an Unfair Preference Claim: Decision Update

The High Court of Australia in Metal Manufactures Pty Limited v Morton [2023] HCA 1 has confirmed the view of the Full Court of the Federal Court of Australia that the "set off" defence under section 553C of the Corporations Act 2001 (Cth) (Act) is no longer available to claims by liquidators for an unfair preference claim made under section 588FA of the Act.

This decision brings finality to claims brought by Creditor Defendants to such claims and no doubt brings much joy to liquidators across Australia.

Filed under:
Australia, Insolvency & Restructuring, Litigation, K&L Gates LLP, Corporations Act 2001 (Australia)
Authors:
Ian J. Dorey , Cameron Adair
Location:
Australia
Firm:
K&L Gates LLP