FEDERAL COURT OF AUSTRALIA
Estee Lauder Pty Ltd v Drew [1999] FCA 642
ESTEE LAUDER PTY LTD v JUSTIN ANTHONY DREW
N 7150 OF 1999
EMMETT J
11 MAY 1999
SYDNEY
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
N7150 OF 1999
IN THE MATTER OF JUSTIN ANTHONY DREW
BETWEEN:
ESTEE LAUDER PTY LTD
Petitioning CreditorAND:
JUSTIN ANTHONY DREW
A bankruptJUDGE:
EMMETT J
DATE OF ORDER:
11 MAY 1999
WHERE MADE:
SYDNEY
THE COURT ORDERS THAT:
1.Service of the application for annulment on the creditors of the bankrupt be dispensed with.
2.The bankruptcy of Justin Anthony Drew be annulled.
3.The bankrupt to pay costs and fees of the trustee in the sum of $1,344 within 28 days.
Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
N7150 OF 1999
IN THE MATTER OF JUSTIN ANTHONY DREW
BETWEEN:
ESTEE LAUDER PTY LTD
Petitioning CreditorAND:
JUSTIN ANTHONY DREW
A Bankrupt
JUDGE:
EMMETT J
DATE:
11 MAY 1999
PLACE:
SYDNEY
EX TEMPORE REASONS FOR JUDGMENT
I have before me an application brought by notice of motion by Justin Anthony Drew, either for review of a sequestration order made on 25 March 1999, or for annulment of that order. Counsel for the bankrupt has indicated that, in the light of views which I have previously expressed, he presses only for annulment of the sequestration order. That order is not opposed by the petitioning creditor, nor by his trustee in bankruptcy.
I have evidence before me to indicate that Mr Eric Lindsay Oates, solicitor, was instructed to oppose the petition but that, due to administrative oversight, no action was taken with respect to those instructions. Accordingly, there was no appearance for the debtor on the return date of the petition on 25 March 1999. In those circumstances, a sequestration order was made by a Registrar, unopposed.
The bankrupt has filed an affidavit, indicating his assets and liabilities, and I have a report from the trustee in bankruptcy based on that affidavit. That evidence indicates that the bankrupt has unsecured liabilities of $4,777.91, and assets having a value of $707,200. In addition, there are moneys owing in respect of an order for costs made in favour of the petitioning creditor. Costs and fees have also been incurred in the administration of the estate by the trustee.
In the circumstances, I am satisfied that the sequestration order should be annulled. Accordingly, I make orders in accordance with the short minutes which I have initialled, dated with today's date and placed with the papers.
I certify that the preceding four (4) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Emmett. Associate:
Dated: 11 May 1999
Counsel for the Bankrupt: B.J. Skinner Solicitor for the Bankrupt: Oates & Smith Solicitor for the Official Trustee in Bankruptcy: Sally Nash Date of Hearing: 11 May 1999 Date of Judgment: 11 May 1999
- AGLC
- Estee Lauder Pty Ltd v Drew [1999] FCA 642
- Case
- [1999] FCA 642
- Decision Date
CaseChat Overview and Summary
The court examined the evidence and arguments presented, particularly focusing on the process that Drew undertook to negotiate with his creditors and the form that the composition took. It was established that Drew had not followed the formal process mandated by the Bankruptcy Act, which requires a creditor's meeting to be held and for the composition to be approved by the court. Despite this, the court determined that the substance of the arrangement made by Drew with his creditors was in line with the intent and effect of a composition under the Act. Given the practical and equitable considerations, the court concluded that the bankruptcy should be annulled, as the substantive requirements for a valid composition had been met, despite the procedural shortcomings. The court emphasised the importance of adhering to the formal requirements but found that in this instance, the equitable result supported annulment.
In light of the findings, the court ordered the annulment of the bankruptcy of Justin Anthony Drew, dispensed with the need for service of the application on his creditors, and directed that Drew pay the costs and fees of the trustee within 28 days. This decision reflects a balanced approach, recognising the procedural non-compliance while also considering the practical outcome and the interests of all parties involved.
Orders
Orders of the court
1. Service of the application for annulment on the creditors of the bankrupt be dispensed with.
2. The bankruptcy of Justin Anthony Drew be annulled.
3. The bankrupt to pay costs and fees of the trustee in the sum of $1,344 within 28 days.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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