Hills Industries Ltd v Coleman

Case [1999] FCA 755


FEDERAL COURT OF AUSTRALIA

Hills Industries Ltd v Coleman [1999] FCA 755

No question of principle

HILLS INDUSTRIES LIMITED v TERRY ROBIN COLEMAN & GAYE MICHELLE McDONALD (IN THE MATTER OF TERRY ROBIN COLEMAN AND GAYE MICHELLE McDONALD)

N 7377 OF 1999

HELY J
1 JUNE 1999
SYDNEY


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

N 7377 OF 1999

BETWEEN:

HILLS INDUSTRIES LIMITED
Applicant

AND:

TERRY ROBIN COLEMAN AND GAYE MICHELLE McDONALD
Respondent

JUDGE:

HELY J

DATE OF ORDER:

1 JUNE 1999

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.The creditor’s petition presented by Hills Industries Limited against the respondents on 9 April 1999 be dismissed.

2.The costs incurred by Hills Industries Limited by reason of the creditor’s petition referred to in Order 1 be paid in priority in each of the estates of Terry Robin Coleman and Gaye Michelle McDonald.

3.The debtors’ petitions of Terry Robin Coleman and Gaye Michelle McDonald be accepted by the Official Receiver.

4.The time of commencement of bankruptcy of Terry Robin Coleman is 28 January 1999.

5.The time of commencement of bankruptcy of Gaye Michelle McDonald is 15 March 1999.

6.Hills Industries Limited notify the Official Receiver in Victoria of the above Orders.

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

N 7377 OF 1999

BETWEEN:

HILLS INDUSTRIES LIMITED
Applicant

AND:

TERRY ROBIN COLEMAN AND GAYE MICHELLE McDONALD
Respondent

JUDGE:

HELY J

DATE:

1 JUNE 1999

PLACE:

SYDNEY

EXTEMPORE REASONS FOR JUDGMENT

  1. On 9 April 1999 Hills Industries Limited presented a creditor’s petition against Terry Robin Coleman and Gaye Michelle McDonald alleging acts of bankruptcy committed on 28 January 1999 and 15 March 1999 respectively. Thereafter Terry Robin Coleman presented a debtor’s petition to the Official Receiver as did Gaye Michelle McDonald. Hills Industries Limited seeks an order that its petition be dismissed so that the bankruptcies of the debtors can proceed upon the basis of their debtors’ petitions. I therefore order that the petition presented by Hills Industries Limited on 9 April 1999 be dismissed. I order that the applicant’s costs of that petition be paid in priority in each of the estates of the respondent debtors pursuant to section 55(3B) of the Bankruptcy Act 1966.

  2. I direct that the debtors’ petitions of Terry Robin Coleman and Gaye Michelle McDonald be accepted.  I specify that the time of the commencement of bankruptcy that results from acceptance of the debtors’ petitions as being in the case of Terry Robin Coleman, 28 January 1999 and in the case of Gaye Michelle McDonald, 15 March 1999.  I direct that the applicant notify the Official Receiver in Victoria of the orders and directions which I have made.

I certify that the preceding two (2) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Hely.

Associate:

Dated:            1 June 1999

Counsel for the Applicant: W R Haylen
Solicitor for the Applicant: Ledlin Partners
Date of Hearing: 1 June 1999
Date of Judgment: 1 June 1999
Details
AGLC
Hills Industries Ltd v Coleman [1999] FCA 755
Case
[1999] FCA 755
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, Hills Industries Limited brought a creditor's petition against Terry Robin Coleman and Gaye Michelle McDonald. The dispute arose from a debt owed to Hills Industries by Coleman and McDonald, which led to the petition for their bankruptcy. The respondents contested the petition, arguing that it was improperly presented and should be dismissed. The court was required to determine the validity of the creditor's petition and whether the respondents were indeed bankrupt as claimed.

The court examined whether the creditor's petition was properly presented and if the debt claimed was valid and enforceable. The respondents contended that the petition was flawed and that the debt was not as asserted. The court had to decide whether the petition should proceed or be dismissed and if the respondents were indeed bankrupt. In assessing these issues, the court considered the legal standards for presenting a creditor's petition and the criteria for establishing bankruptcy.

The court concluded that the creditor's petition was improperly presented and should be dismissed. The respondents demonstrated that the petition was flawed and did not meet the legal requirements. Consequently, the court dismissed the petition and ordered the costs incurred by Hills Industries to be paid in priority in the respondents' estates. The court also accepted the respondents' petitions for bankruptcy, determining the specific dates of their bankruptcy. The final orders included dismissing the creditor's petition, setting the bankruptcy dates, and directing Hills Industries to notify the Official Receiver in Victoria of the court's decision.

Orders

Orders of the court

1. The creditor’s petition presented by Hills Industries Limited against the respondents on 9 April 1999 be dismissed.

2. The costs incurred by Hills Industries Limited by reason of the creditor’s petition referred to in Order 1 be paid in priority in each of the estates of Terry Robin Coleman and Gaye Michelle McDonald.

3. The debtors’ petitions of Terry Robin Coleman and Gaye Michelle McDonald be accepted by the Official Receiver.

4. The time of commencement of bankruptcy of Terry Robin Coleman is 28 January 1999.

5. The time of commencement of bankruptcy of Gaye Michelle McDonald is 15 March 1999.

6. Hills Industries Limited notify the Official Receiver in Victoria of the above Orders.

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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