Commonwealth Consolidated Acts

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Limitation on right of suppliers of essential services to insist on payment as condition of supply

             (1)  If:

                     (a)  a relevant authority of an eligible company requests, or authorises someone else to request, a person or authority ( the supplier ) to supply an essential service to the company in Australia; and

                     (b)  the company owes an amount to the supplier in respect of the supply of the essential service before the effective day;

the supplier must not:

                     (c)  refuse to comply with the request for the reason only that the amount is owing; or

                     (d)  make it a condition of the supply of the essential service pursuant to the request that the amount is to be paid.

             (2)  In this section:

"effective day" , in relation to a relevant authority of an eligible company, means the day when the relevant authority became a relevant authority of the company, even if that day began before this Act commenced.

"eligible company" means a company:

                     (a)  that is being wound up; or

                     (b)  a provisional liquidator of which is acting; or

                     (c)  that is under administration; or

                     (d)  that has executed a deed of company arrangement that has not yet terminated; or

                     (e)  a receiver, or receiver and manager, of property of which is acting.

"essential service" means:

                     (a)  electricity; or

                     (b)  gas; or

                     (c)  water; or

                     (d)  a carriage service (within the meaning of the Telecommunications Act 1997 ).

"relevant authority" , in relation to an eligible company, means:

                     (a)  the liquidator; or

                     (b)  the provisional liquidator; or

                     (c)  the administrator of the company; or

                     (d)  the administrator of the deed of company arrangement; or

                     (e)  the receiver, or receiver and manager;

as the case requires.

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