Think you know the law? YOU BE THE JUDGE
Your new Customer Doh-Nut Thyme suddenly goes into Liquidation. Luckily, you registered your security interest on the PPSR and you now consider yourself a secured creditor. You promptly give the Liquidator details of your security interest.
You receive notice of a creditors’ meeting requiring a completed Proof of Debt Form to vote. Consumed by sugar cravings, you fill out the POD but don’t make any reference to your security. After all, you’ve already advised the Liquidator of your security interest and he’s busy fighting the ATO’s application to have him replaced.
The Liquidator contacts you saying that you have surrendered your security because your POD made no reference to it and instead was for the full value of your debt. You now rank as an ordinary unsecured creditor! That feeling in your stomach is not hunger but stress.
Your blood sugar levels drop so you reach for a donut and call your lawyers. They file an application seeking a declaration that even though you voted in respect of your whole debt, you did not surrender your security. You emotionally eat donuts while nervously waiting for the outcome of the Court case.
So.. Did you surrender your security interest? Read the Case Note below to find out!
Case Note – In the matter of Glacier Ceiling Battens Pty Ltd (In Liq)  NSWSC 1832