The Victorian Supreme Court has prevented a company from being deregistered so QBE can continue legal proceedings as the business’ insurer.

The court ordered the Australian Securities and Investments Commission not to deregister Malwa Express Transport until May 2027.

Malwa is in liquidation and neither the liquidator nor ASIC opposed the action in court.

QBE has proceedings in the Victorian County Court.

In 2020 it insured a Mercedes-Benz prime mover bought by Malwa, a logistics company.

In March 2021 the truck caught fire and QBE paid out $261,362. The insurer then became subrogated to Malwa’s rights of recovery.

When the insurer investigated the loss, it was told the fire was caused by a failure within the ASAM (advanced signal actuator module) in the truck dashboard.  

It sued Laverton Auto, which sold Malwa the truck and installed several accessories routed through the ASAM. QBE also sued Daimler, the truck’s manufacturer.

The County Court scheduled a trial for August 2026, but in April last year Malwa went into liquidation and in July this year the liquidator started wind-up proceedings.

Supreme Court judge Paul Cosgrave says deregistration can be deferred when the continued existence of a company is necessary for a “proper purpose”.

QBE has a significant financial interest in Malwa remaining registered so it can pursue its rights under the insurance policy, he says.

Read the judgment here.