Hedrlin, Re J.

[1986] FCA 44

IN THE FEDERAL COURT OF AUSTRALIA	)
1

NEW SOUTH HALES DISTRICT	REGISTRY	1	No. 448 of 1983
1
GENERAL DIVISION	)

-

B:

JOSEPH HEDRLIN

Bankrupt

MINUTE OF ORDER OF THE COURT

Judse makins order: Burchett J.

Where made:	Sydney
Date of order:	18 February 1986

THE COURT ORDERS THAT:

(1) The application for annulment of the bankruptcy be

dismissed.

( 2 )	The bankrupt pay the costs of the	trustee and the
petitioning creditor.

- NOTE: Settlement and entry of orders is dealt with in Rule 124 of the Bankruptcy Rules,

2 .

Since then, there have been at least half a dozen

applications for annulment, and at least one further appeal to

the Full Court. The present application for annulment was said

-

to be on a ground new and different from grounds previously

taken. It was said that a sequestration order ought not to have

been made, because the debtor was, in fact, able to pay his

debts. Mr. Hedrlin presumably relies on the decision in

Sarina (1980) 32 A.L.R. 596.

With engaging frankness, he declares that he had no

intention of paying the petitioning creditor's debt, and does not

intend ever to pay it, but that he was able to pay and that his

ability to pay provided a defence. In support of this defence,

he has referred to his employment, although he declined to accept

that it could accurately be described by that name. Rather, he

preferred to say that he was engaged in "helping" his wife in her

business, and indeed that he helped in certain other businesses

as well. He says that by these means, though not working regular

hours, he was in receipt of income.

He also referred to three particular properties, that

is, pieces of real estate, one at Wentworth Falls which was in

his wife's name, one at Coffs Harbour which he says was in the

joint names of his wife and himself, and one at Surry	Hills which
was in his wife's name.

.

. . ..

. , . '

- 4 .

..

items he did say that the figures were approximate. The

statement of affairs showed the amount owing to unsecured

creditors, according to part 2, which was a list of unsecured

creditors furnishing the names of some eight different creditors.

The total amount was shown as $261,000 in the summary. Likewise

'in the summary. the amount by which the secured debts due to

, creditors exceed the value of the securities, according to part

3 , was shown a3 $230,000. Liabilities were totalled at $491,000

by reason of the addition of those figures.

In the same summary, assets were shown at, firstly,

property specified in part 5, $2. (Part 5 is the section which

sets out details of property, most of the details in the form

being completed "nil", and the details for cash in hand being completed at $2, which was also the total.) Other property was

shown at nil. The amount by which the secured debts due to

creditors were less than the value of the securities, according

to part 3 , was shown in the summary at $20,000. Book debts were

shown in the summary at $l,OOO,OOO, and the total in the summary

was shown at $1,020,002. The figure of $1,000,000 calls for some

explanation. That figure in the detailed schedule in part 6 was

shown as a debt due to the estate from the Socialist Republic of

Czechoslovakia, and under column 5 , "Amount Likely to be

Received", no amount was shown, and the word "never" was inserted

in what appears to be the same handwriting, which Mr. Hedrlin

identified as his own. He did not suggest that he was not the

author of that word also. Indeed, in cross-examination, Mr.

I .

,e ' . ,- . ,, .

1 . . .

., . - 1 I .

. .. I ., :. 6.

-,, - I

- . 2 I _

I do not consider, particularly having regard to the contents of

the statement of affairs, that I should accept the present

. .

assertions that he w a s , at the relevant time, able to pay his

debts. . ., That being so, I must hold that he has not made out the

ground which was pressed before me.

, . , - , \ , I . , I

. ' G I - I do not think the Human Rishts Commission Act 1981 in

I >

any way affects the operation of the Bankruptcv Act, or raises

_ I

, L . .

any ground which calls for any further discussion in this

- ',. *l .

judgment. For these reasons the application is dismissed and I

order the bankrupt to pay the costs	of	the trustee and the
petitioning creditor.

_ ,

. , , 9 4 : . , I

I . . .-, - . z . - , . c ; , - : I

_ . I ,

. ; ~ - ~

~ -. ' " L. , . : -

1 , I , " I.

, . S,. . . , .

I certify that this and the

preceding five ( 5 ) pages are a

true copy of the Reasons for Judgment herein of his Honour

Mr. Justice Burchett.

Associate

Dated: 18 February, 1986. - , L . . I ,

. . . , I I