The Airtourer Co-operative Ltd v Millicer Aircraft Industries Pty Ltd
[2004] FCA 393
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2004-04-07
Before
Beaumont J
Source
Original judgment source is linked above.
Judgment (15 paragraphs)
Introduction 1 Before describing the separate question considered in these reasons, it will be necessary to explain the nature of the principal proceedings. 2 By its statement of claim filed on 10 November 2003, and bearing that date, the applicant alleged the following: · On or around 5 December 1997, the applicant and the first respondent entered into a contract ('the Contract') for the sale of certain property and aircraft rights, including four Certificates of Type Approval and other intellectual property and some manufacturing jigs ('the Airtourer Property'), owned by the applicant. (Under cl 3 and cl 4 of the Contract, the first respondent promised to pay the applicant the sum of $30,000 as consideration for the sale of the 'whole of the [applicant's] estate and interest in the [above] property ... '. Upon payment of the consideration, ownership in the (above) property would vest in the first respondent, 'to the intent of both parties that the [first respondent] thereafter shall have sole ownership of the design and manufacturing rights of all the Air Tourer range of aircraft'.) · Pursuant to the Contract, the Airtourer Property was transferred to the first respondent. (The Certificates of Type Approval were transferred to the first respondent on or about 5 April 1998.) · It was a term of the Contract (cl 16) that the first respondent warranted that it would make an application for a Certificate of Type Approval for a 125 hp engined version of the Air Tourer aircraft. (Clause 16 further provided that if such an approval were granted by the Civil Aviation Safety Authority Australia, the first respondent warranted that it would manufacture and market the aircraft under the name 'Air Tourer'.) · In the period from 5 December 1997 to date, the first respondent has not made an application for a Certificate of Type Approval for a 125 hp version of the Air Tourer aircraft. · It was a term of the Contract (cl 17) that, if the first respondent failed to produce an Air Tourer aircraft for sale within five years of the date of the transfer of the Certificates of Type Approval (i.e. by April 2003), the first respondent would return the property sold under the Contract to the applicant and would forfeit the whole of the purchase price. · In the period from 5 December 1997 to date, the first respondent has not produced an Air Tourer aircraft for sale. · In the premises, the first respondent is required to return the Airtourer Property sold under the Contract to the applicant. · The applicant has demanded the return of the Airtourer Property from the respondents and these demands have been refused. 3 The applicant, by its Application previously filed on 24 October 2003 (but bearing the date 23 October 2003), claimed the following substantive relief: '1. A Declaration that the First and Second Respondents have no right, title or interest in the design and manufacturing rights and intellectual property associated with the Victa Airtourer aircraft type. 2, An order for specific performance of clause 17 of the Agreement between the Applicant and the First Respondent dated 5 December 1997 ("Agreement") requiring the First Respondent to do, and the Second Respondents to cause the First Respondent to do, all things necessary to return the aircraft rights to the Applicant. 3. An order that the First Respondent deliver up of all manufacturing jigs, tooling and other equipment referred to in paragraph 3 of The Second Schedule to the Agreement.' 4 By their Defence, the respondents plead, inter alia, the following: '12. In answer to the whole of the Applicant's claim, the First and Second Respondents say that: (a) the First Respondent is currently subject to a deed of company arrangement executed on behalf of the First Respondent and by the Second Respondents on or about 2 February 2000 ("Deed"); (b) the Applicant may not begin or proceed with these proceedings in the absence of a grant of leave from the Court, which the Applicant has not obtained; (c) to the extent that the Applicant has any claim against the First Respondent (which is denied) the Applicant; (i) is a creditor of the First Respondent; (ii) is bound by the Deed; and (iii) may not begin or proceed with these proceedings.'