The facts in Metal Manufactures v Morton
Metal Manufactures Pty Limited (Metal Manufactures) supplied goods to MJ Woodman Electrical Contractors Pty Ltd (MJ Woodman) on credit, leading to debts owed by MJ Woodman to Metal Manufactures. During the relation back period, MJ Woodman made payments of $190,000 to Metal Manufactures in satisfaction of the debts.
Upon MJ Woodman being wound up, the liquidator claimed that the $190,000 paid to Metal Manufactures were unfair preference payments under s 588FA of the Corporations Act, and Metal Manufactures was therefore liable to pay the $190,000 to the liquidator upon obtaining a court order under s 588FF of the Corporations Act.
In turn, Metal Manufactures claimed that the $190,000 it was liable …
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