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Selected cases

Federal Court of Australia · [2026] FCA 536

Narayan, in the matter of Elexsys Energy

A Federal Court case about trade credit, general security deeds, retention-of-title claims and disputed batteries after receivership.

Federal Court of Australia1 May 2026

Plain-English explainers, not legal advice. Check the linked official source before you rely on a specific section, and get advice for your situation.

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Quick read

  • Trade credit and retention-of-title clauses need PPSR discipline.
  • A Federal Court case about trade credit, general security deeds, retention-of-title claims and disputed batteries after receivership.

Use this to check

  • Retention-of-title clauses should be matched with PPSR registrations where the PPSA requires it.
  • General security deeds should describe the collateral and enforcement rights clearly.
  • Trade credit files should keep signed terms, invoices, delivery evidence and security registrations together.

Decision snapshot

  1. 1

    What happened

    • The dispute arose after Elexsys Energy went into receivership.
    • The parties had entered trade credit agreements and general security deeds, and a secured creditor sought to enforce security.
    • A key practical issue was ownership and control of large batteries.
    • The case required the Court to interpret the general security deeds, consider retention-of-title arguments, and deal with the effect of PPSA perfection and security enforcement in the middle of an insolvency-style situation.
  2. 2

    What the court had to decide

    • The Federal Court had to decide whether a secured creditor was entitled to enforce security under trade credit agreements and general security deeds, how the deeds should be interpreted, how retention-of-title arguments affected ownership of the batteries, and whether seizure or delivery-up orders should be made.
  3. 3

    What the court decided

    • The Federal Court made orders in the secured creditor enforcement dispute.
    • The judgment confirms that trade credit documents, general security deeds, ownership evidence, retention-of-title terms and PPSA perfection can all become decisive when valuable goods are disputed after default.

Practical impact

Practical read

  • Trade credit and retention-of-title clauses need PPSR discipline.
  • If goods, equipment or inventory are supplied on credit, the paperwork and registrations should make ownership, security and enforcement rights clear before insolvency or receivership hits.

Useful next steps

  • Retention-of-title clauses should be matched with PPSR registrations where the PPSA requires it.
  • General security deeds should describe the collateral and enforcement rights clearly.
  • Trade credit files should keep signed terms, invoices, delivery evidence and security registrations together.
  • A supplier should check registration timing and serial-number rules before supplying valuable equipment.
  • Review retention-of-title terms before supplying goods on account.

Practical read

This is a security-interest case with a very practical business story. A supplier or lender can believe it has strong rights over goods, equipment or inventory, but when the customer defaults or enters external administration, the documents and PPSR registrations are tested hard.

The fight over the large batteries shows why retention-of-title wording and general security documents need to be joined up. It is not enough to rely on a commercial understanding that the goods are yours until paid for. The relevant documents, registrations, descriptions of collateral and enforcement steps need to work together.

For small businesses that sell equipment, supply stock on account, finance customer purchases or take security for invoices, the lesson is simple: review the credit terms before the customer gets into trouble. By the time receivers are appointed, the dispute is much more expensive and the evidence is much harder to fix.

Checks to run

Key points

  • Review retention-of-title terms before supplying goods on account.
  • Register PPSR interests promptly and check collateral descriptions.
  • Keep proof of delivery, serial numbers, invoices and signed credit terms together.
  • Check whether equipment, batteries, vehicles or other valuable goods need special registration details.
  • Act quickly on default because insolvency can change the practical enforcement landscape.

Key takeaways

  • Retention-of-title clauses should be matched with PPSR registrations where the PPSA requires it.
  • General security deeds should describe the collateral and enforcement rights clearly.
  • Trade credit files should keep signed terms, invoices, delivery evidence and security registrations together.
  • A supplier should check registration timing and serial-number rules before supplying valuable equipment.

Related topics

Finance, Payments & SecurityContracts & CommercialInsolvency & Restructuring

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