43 Canstruct submitted that the object of Project Sea Dragon and...

43 Canstruct submitted that the object of Project Sea Dragon and Seafarms Group Limited in putting the former into administration and proposing the DOCA was to avoid having to make payment in accordance with the adjudicator’s decision, whilst at the same time avoiding scrutiny of Project Sea Dragon’s potential insolvent trading in the two-year period prior to the administration. It was submitted that Part 5.3A had been used to achieve these objects, and that this constituted an abuse of the statutory regime.

44 On the basis of the evidence before the Court, which is presently untested by cross-examination or any substantial countervailing evidence, Canstruct has established that there is a serious question to be tried as to whether Seafarms Group Limited and/or Project Sea Dragon have sought to utilise the administration process and the DOCA, under Part 5.3A, for thecollateral purposes alleged.