Harwood, A v Lawrence, E

[1993] FCA 89

JUDGMENT No. ..... Ego .... 1

IN THE ~EDERAL COURT OF AUSTRALIA

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1

GENERAL DIVISION	)	No.	NX46 of 1 9 8 9
)
BANKRUPTCY DISTRICT OF THE STATE	) )
OF NEW SOUTH WALES	)

Re:	ANDREW HARWOOD Debtor
Ex Parte:	ERIC LAWRENCE Creditor

CORAM:	Beaumont J.
DATE:	5 February 1 9 9 3  ' 2 MAR 1993

FEDERAL COURT OF ;

AUSTRALIA

PRINCIPAL

EX TEMPORE REASONS FOR JUDGMENT REGISTRY

In thls matter an appllcation dated 16 November 1 9 9 2 has been made by Mr Andrew, as trustee, that a conlposltlon entered Into by Mr Harwood on 29 March 1 9 8 9 be terminated.

The basis of the appllcation, which is not contested

IS, that under the terms of the composition the debtor was to

contribute funds at a minlmum rate of $ 4 0 0 per month commencing on 2 0 Aprll 1 9 8 9 . The final payment of instalments was due and payable by 3 1 March 1 9 9 3 .

by 3 1 March next.

As at 26 November 1 9 9 2 the debtor was then seven months in arrears on hls monthly contributions, being a total of $ 2 8 0 0 . Perhaps more significantly the debtor, under the terms of the composition, was contractually bound to contribute a further mlnimum sum of $30,000 as a lump figure

The evidence before me discloses that the debtor has substant~al creditors and no assets of any s~gnificance, and regrettably little prospect of any source of income or other funds which would be requ~red to meet the l ~ a b i l ~ t ~ e s incurred under the terms of the composition.

In those circumstances it is appropriate and, I
think, the only course available, from the po~nt of view of

the court, that the composition be terminated and I so order.

There is also sought consequentially an order that a

sequestrat~on order be made against the estate of the debtor.

In the circumstances and in particular given the absence of any funds available to meet the significant liabilities of the debtor, it is again appropriate that a sequestration order be made agalnst his estate. I order that a sequestration order be made in respect of the estate of the debtor.

preced~ng page are a true copy of the	I hereby certify that this and the
Reasons for Ju nour Mr.
Justice Beaumon Associate