Court Judgment on Private Property Security Register (PPSR) Issue
The WA Supreme Court recently delivered judgement on a landmark case where the owner of Spiers Earthworks Pty Ltd, whose assets included motor vehicles and trailers, lost them all to the Receiver and Manager appointed over the company to whom they were leased.
Because Spiers failed to register the company assets (listed value of more than $140,000) on the Private Property Security Register (PPSR) as required by the Act, they lost them to the Receiver.
In the WA ruling the Receiver obtained a Court ruling, not only confirming that he was entitled to retain and sell the assets in his possession, but that Spiers Earthworks had to return all assets repossessed from the hirer before appointment of the Receiver and Manager.
The lesson is clear. If you think you have satisfactorily recovered your assets before the appointment of a Receiver and Manager to one of your clients, then you could be wrong. You can only be right if each asset you hired or leased to that client was registered correctly on the PPSR.
The Spiers case is an example of an owner not only losing assets to an insolvency practitioner, but also having to pay his own legal fees as well as the Receiver’s; all this for failure to pay a PPSR registration fee of $16.