Joseph Hedrlin v The Properties of Strata Plan No 3670

Case [1983] FCA 90


IN THE FEDERAL COURT OF AUSTRALIA)

)

GENERAL

D I V I S I O N

1

)

No. P 245 of

1983

Bm-KRUPTCY D I S T R I C T OF

TEE STATE

)

OF NEW SOUTH WALES AND THE

1

AUSTRALIAN CAPITAL TERRITORY

1

R e :

Joseph

Hedr l ln

Ex

p a r t e :

The

P r o p r i e t o r s o f

S t r a t a P l a n

No.3670

CORAM:

E v a t t J.

24 May 1983

REASONS

FOR

JUDGMENT

On 2 8 February

1983

a

Deputy

Regis t ra r

of

t h e

C o u r t

gave

n o t i c e

t h a t

t h e c r e d i t o r ' s

p e t i t i o n h e r e l n , d a t e d

22

November

1982

would

be heard

on

17

May

1 9 8 3 . S e r v i c e o f

t h e p e t l t l o n w l t h

such

no

t

ice

d l l ly

endorsed

thereon

was

e f f e c t e d

o

n

t h e

d e b t o r

o

n

23

March

1983.

On

26 Apr l l 1983

the deb to r Joseph Hedr l ln f l l ed he re in

a

s i x p a g e

t y p e d

d o c m e n t

e n t l t l e d

" N o t l c e

Q

f

I n t e n t i o n

t o

Opose

( s i c ) P e t l t l o n " .

When

t h e p e t i t i o n

was

c a l l e d

on

a t

a p p r o x i T a t e l y

1 0 . 3 0

a.T. on LedinghaT,

17 May 1983 M r Bllsh,

s o l l c l t o r

o

f

t h e

f l r m

o f

Hones

and

S o l i c l t w s

o f

44

Market

S t r ee t ,

Sydney,

appeared

for

t h e

p e t i t i o n l n g

c r e d i t o r

w h l l s t

h e

d e b t q r

a p p e a r e d

I n

p e r s o n .

d .

The

p a r t i e s h a v i n g

t h e n

l n d l c a t e d

t h a t

t h e n a t t e r

would

be

long

t h e

v a t t e r

was

s tood down

I n

t h e

l i s t .

A t

about

3.30

p.m.

o n

t h a t day consequen t ly was

It

w a s

c l e a r

t h a t

t h e n a t t e r

would

not

be reached

and

stood ove r l m t l l noon,

l& May 1983.

When

t h e

ma t t e r

w a s

c a l l e d

o n

f o r h e a r i n g a t

a b o u t

1 2 . 1 5 p.v.

on 18 May 1983

t he

appea rances

were

a s

l nd lca t ed .

Mr

B u s h

o b l e c t e d

t o t h e

dncument

p u r p o r t l n g

t o be

a

n o t i c e

of

o p p o s l t i o n

t o

t h e p e t i t l o n o n

the

ground

t h a t s u c h n o t l c e d l d

n o t

se t

o u t o r r e f e r t o a n y s t a t e m e n t i n t h e p e t i t l n n

tha t

t h e d e b t o r

i n t e n d e d

t n

d e n y

o

r

d l s p u t e

o

r

a n y

o t h e r

g r o u n d

o n

wh ich

he

i n t e n d e d

t o

o p p o s e

t h e

p e t i t l o n

a s

is

p r o v i d e d

f o r

i n

r . 2 0

o f

the Bankruptcy Rules .

Rule

20

p r o v i d e s :

“ N o t i c e o f O p p o s i t i o n t n P e t l t l o n

2 0 .

A

debtor

w h o

l n t e n d s

t o

d e n y

o r

d l s p u t e

a

s t a t e m e n t

I n

a

p e t i t l o n

o r

o p p o s e

a

p e t i t i o n o n a n y

o ther

g r o u n d

s h a l l ,

n o t

l e s s

t h a n

3

d a y s

b e f o r e

the

h e a r l n g d a t e o f t h e p e t l t i o n

-

( a ) f i l e

a

n o t i c e ,

l n

a c c o r d a n c e

w l t h

Form

8 ,

s e t t i n g

o u t

r)r

r e f e r r i n g

tr,

t h e

s t a t e l l e n t

i

the

p e t i t i o n

t h a t

h e

i n t e n d s

t o

d e n y

o

r

c i l s p u t e

or

t h e o t h e r

g rounds

on

wh ich

he

l n t e n d s

t o

o p p o s e

the p e t i t i o n :

and

( b ) s e r v e

a

c n p y o f

t h e n o t i c e o n

t h e

s o l i c i t o r f o r t h e p e t l t i o n l n g c r e d i t o r . “

F u r t h e r ,

it was

srtb’nnltted

by

t h e

p e t l t i o n l n g

creditor

tha t

it

would appear

t h a t t h e d o c m e n t f l l e d b y t h e d e b t o r r a i s e d

mat te rs

which

ad

a l ready

been

de te rn ined .

by

the

Cour t

o r

the

3 .

Supreme

Court

of New South Wales I n

e a r l l e r

p r o c e e d l n g s

b e t w e e n

t h e

p a r t i e s

a n d

a c c o r d i n g l y

c o u l d

n o t

be

r e - o p e n e d

i n

t h e s e

p roceed ings .

Fu r the r ,

no

a f f l d a v i t

h a d

b e e n

f l l e d

l n

s u p p o r t

o f

t h e

matters

a l l e g e d i n s u c h n o t i c e .

I t

woulc?

a p p e a r t h a t I n

or

a b o u t

March

1982,

subsequent

t o

t h e

s

r v i c e

o f

t h e

b a n k r u p t c y

n o t l c e

h e r e i n ,

d o c m e n t s

accepted

as

b e i n g

a f f i d a v i t s

p u r s u a n t

t o

s . 4 1 ( 7 )

o f

the

Bankrllptcy A c t 1966 sworn

by

the

debtor

were

f i l e d

w h e r e l n

the

d e b t o r

claimed

t h a t

h

e

h a d

a

c o u n t e r - c l a l n

s e t - o f f

o r

cross

demand equa l t o or exceeding

the anount c la imed

i

n

t h e b a n k r u p t c y

n o t l c e .

An

a p p l i c a t l o n

t o

d e t e r n i n e

t h l s

a s p e c t

t h e

o f

proceedings came o n

f o r

h e a r i n g

before

Lockhart

J.

on

14

Apr i l

1962 when

h l s Honour

d e c l a r e d t h a t h e

was

" n o t s a t l s f l e d t h a t

t&e

d e b t o r

h a s

a

c o u n t e r - c l a i m

s e t - o f f

o r

c r o s s

demand

e q u a l

t o

o

r

exceed lng the

amount of

the sum payable by

him unde r the

order o f

t h e

S u p r e m e

C o u r t

o f

New

S o u t h

Wales

of

3

A p r l l

1 9 8 1

a n d

t h e

c e r t l f l c a t e of

costs

t h a t

i s s u e d

s u b s e q u e n t l y o n

9

October

1981,

be ing a counter -c la im

set-off

or cross demand,

t h a t he

c o u l d n o t

have set up i n the Supreme

Cour

p roceedings"

t

and

ordered

tha t

t h e

d

b t o r

p a y

t h e

p

t i t l o n i n g

c r e d l t g r ' s

costs

i n c l u d i n g

r e s e r v e d

costs

of

the p roceed ings be fo re h lm.

The

~ u d g m e n t

d e b t

q n

w h i c h

t h e

p e t l t i o n

h e r e i n

i s

founded was the

a-munt

-f

c o s t s ,

d u l y

t a x e d

a t

$ 1 , 5 3 6 . 6 0 ,

whlch

t h e debt-r

had

been

ordered

t o pay

i n a n a c t i m i n

t h e

Supreme

Court of New South

Wales

brought

by

him

a g a l n s t

t h e p e t l t i o n l n g

4 .

c r e d l t o r

a n d

a

S t l p e n d i a r y

M a g l s t r a t e

(No. 16057

of

1980)

The

.

C o u r t

has

b e e n l n f o r n e d t h a t

t h a t a c t i o n

w a s

a n a p p l i c a t i o n

made

u n d e r

S . l 1 2

o f

t h e

J u s t l c e s

A c t

( N . S . W . )

s e e k i n g

a n

o r d e r

quash lng

an

o rde r

of

a

S t i p e n d i a r y

M a g i s t r a t e

i n

t h e

C o u r t

of

P e t t y

S e s s i o n s ,

Burwood

n o n - s u i t l n g

t h ’ e

d e b t o r

i n

a n

a c t i o n

b r o u g h t b y h l m a g a l n s t

t h e p e t l t l o n i n g c r e d l t o r . T h a t a c t i o n

was

a

c l a i m

( i n t e r

a l l a )

f o r

moneys

e q u a l l i n g

the

t o t a l

o f

c e r t a l n

levies

which

had

been

imposed

upon

each

of

the

owners ,

inc l - ld ing

t h e d e b t o r , P lan No.3670

of

u n i t s

w i t h l n

t h e

common

p r o p e r t y

known

as

S t r a t a

and

which

ad

been

deducted

from t h e moneys

p a l d

Over

b y t h e p u r c h a s e r o f t h e d e b t o r ’ s

u n l t

when

the

same had been

s o l d b y t h e d e b t o r .

The

d e b t o r

a p p e a l e d

t o

a

F u l l

C o u r t

of

the

Cour

t

f rom

t h e

d e c i s i o n

of

Lockhart J..

On

2 7 October

1982

the

Ful l

Cour

t

s f t e r t a k m r r

t l m e

t o c o n s l d e r

t h e m a t t e r d l s m l s s e d t h e a p y e a l a n d

o r d e r e d t h a t t h e d e b t o r p a y t h e p e t i t i o n l n a

creri l tor’s

c o s t s

of

t h e a p p e a l .

The

d e b t o r a p p e a r s t o h a v e

a

r easonab le

command

of

b o t h

p r i n t e d a n d s p k e n E n g l i s h b u t a t

times,

because

of

a n a c c e n t ,

It

i s

d l f f l c u l t

t o

f u l l y

u n d e r s t a n d

e v e r y

word

he

s a y s ,

e s p e c i a l l y

when he beco-nes e x c l t e d .

P a r t

Qf t h e

e x

tenpore

r e a s o n s

for

~udgment

Qf

Lockhar t

J. glven

on

14

Apr i l

1982

where

h i s

Honour

s a l d

“ I have

not

found

it

e n t i r e l y e a s y

t o g r a s p e v e r y p i n t o n

wh ich

t he

a p p l i c a n t

( t h e d e b t n r )

r e l l e s b u t

I

h a v e ,

I

t h l n k ,

d o l n g

t h e

b e s t

I

c a n ,

g r a s p e d

t h e

s s e n t i a l

p o l n t s

w h i c h

a v e

b e e n

r e f e r r e d

t o

In

a r g u n e n t

a n d

w h l c h

a r e

s e t

o u t

I n

h l s

- _

5 .

numerous affidavits

f l l e d i n these

p roceed lngs ,

wh

lch

t hewse lves

s t a t e n a t t e r s

of

f a c t ,

opinion

and

argwnent"

1 s

a p p o s i t e .

The

C o u r t

a s

p r e s e n t l y

c o n s t l t u t e d

e x p e r i e n c e d

t h e

same

d i f f i c u l t i e s

b u t

1s

s a t i s f i e d

t h a t

it

h a s

g r a s p e d

t h e

a r g u m e n t s

p u t

hy

t h e

d e b t o r

w h i c h

t h e

C o u r t

d l d

n o t

llmit

e v e n

t h o u g h

t h e

s o - c a l l e d

n o t l c e

of

i n t e n t i o n

t o

o p p o s e

f a i l s

t o

conform

w l t h

r .20

the

Bankruptcy

of

Rules .

To

f u l l y

a p p r e c l a t e

t h e

d i f f i c u l t i e s

the

C o u r t

h a s

h a d

i n

t h i s

r e g a r d

o n e

o n l y

needs

t o

c o n s i d e r

the

so -ca l l ed

not lce

of

i n t e n t i o n

t o oppose which

1 s

set

o u t

v e r b a t i m .

I n the

FEDERAL COURT OF AUSTRALIA No.P 245 of

1983

General

D iv i s ion

JOSEPH HEDRLIN

BANKRUPTCY DISTRICT

Appel lant

o f t h e

"THE PROPRIETORS

STATE OF NEW SOUTH WALES

STRATA PLAN N o .

and t h e AUSTRALIAN CAPITAL TERRITORY

3670"

The THING!

TAKE

NOTICE

t h a t JOSEPH

HEDRLIN,

i n t e n d s

t o

deny the of "THE PROPRIETORS

following

s t a t e w e n t s i n t h e p e t l t i o n

STRATA

PLAN No.3670" of

the N h V E 1 9 8 3 / ~ r e s e n t e d 2 8 t h F e b r u a r y 1 9 8 3 .

t h e

T H I N G ,

da t ed

20 th

Februa ry

The

a p p e l a n t b e l l e v e

tha t

t h i s a c t l o n

as

l e e d

by t h e sol ic i tors Hones

&

Ledinghan/G.M.BUSH

i s a n i n t e r - a l l i a

I11

A c t i o n ,

w l t h

I n t e n t ,

wh lch

i s

as

be l l eved

o f

Cr imina l

na tu r ,

no t

o n l y

w i t h

I n t e n t

c a u s e d

~ n ~ u r i e s

t o

my

person

and

my

f a w i l y ,

b u t

a l s o

t o

t h e

b o d y

c o r p o r a t e

a s

a

such

and

t o make wockery

of

t h e C o u r t FEDERAL COURT OF

s y s t e w

o

f

t h e

S t a t e

N.S.W.

and

the

AUSTRALIA.

On

one

s l d e i s a

t r a l n e d

p e r s n

i n

t h e

L a w

a

s o l l c l t o r

and

on

other

wyself

a

pe r son ,

who

is

n o t

t r a i n e d a p a r e n t l y

I n

t h i s

L a w

and

has

n o t

t h e

p r o p e r language.

k n o k l e d g e

t h e

o f

E n g l i s h

6 .

T h i s

a c t i o n

1 s a s

a

r e s u l t of

s e r i e s

o f

a c t i o n s

t h a t

t h l s

same

s o l l c i t o r s

w a s

i n v o l v e d

a n d

t h e y

d e s c r l b e

t h e a

I n

t h e i r

p e t i t l o n .

But

t h e

r e s u l t s

o f

t h a t

a c t l o n s

a s

d e s c r l b e d ,

c a n - n o t

b

e

c o u n t e d

t o

t h e

Fame

o f

1

t h e

C o u r t s

lnvolved

b u t

cont ra ry .

Thanks

t o

the

s o l i c l t o r i n v o l v e d .

Th i s

so l i c l to r

c l a i a t o appear

on

b e h a l f

o f

a

NAME

and

T H I N G .

A l l way

a l l o n g

s l n c e

h e

h a s

s t a r t e d and

this

e v e n

i n

o t h e r

a c t i o n s

s i n c e

1975.

H e

has

o b t i n e d

f r o a

the

Cour ts

d e c l s s i o n s ,

t h a t

t h e

T H I N G

t h e

NAME

h a s

appeared and

i s e n t i t l e d t o o b t i n COSTS.

I doo not

t o have t o be a lawyer

and too auch

s k i l l e d

i n

E n g l l s h t o r e a d

the

r e l e v a n t

A c t ,

i n

t h e

S t a t e

o f

N e w

South

Wales,

t h e

S t r a t a T i t l e s A c t 1973 as

aaended,

as

fo l low;

S e c . 5 ( 1 )

I n t e r p r e t a t i o n

S e c . 5 4 ( 1 )

C o n s t i t s t i o n

S e c . 5 4 ( 2 )

Sec. 54 (3

) DUTY

I n t e r p r e t a t i o n

A c t

1897 Sec.11

Accordlngly

with

the

I n t e r p r e t a t i o n

A c t

as

above,

the

sections o f the S t r a t a T l t l e s have

a

subs tan t ive

enac tment

and

l e t

made

conc lus lon

tha t

It

qean

o t h e r

I n

w o r d s

n o t h l n g e l s e

t h a t

a

NAME

a

T H I N G .

The

aaount

of

p r o p r i e t o r s

1s

m s p e c i f l e d

b u t

It

is

e s t i m a t e d

t h a t

a o r e

t h a n 9 0 0 . 0 0 0 p r o p r i e t o r s

i n the

S t a t e of

N e w South

Wales

a r e

a f e c t e d

b y t h e

especlal bene f i t

t h e

Strata

T i t l e s

f o r

whose

b e n e f i t

a

e s p e c l a l

b e n e f l t

h a v e

b e e n

passed .

Ev iden t ly

M r

Sollcitqrs

d l s r e g a r d

t h a t

a b o v e

Law.

I

doo no t be l i eve

tha

t

he

can

have

the

power

t o a c t before any C o u r t .

o n

b e h a l f

o f

t h e

9 0 0 . 0 0 0

p e r s o n s ,

A PROPRIETOR i n t e r - a l l l a

wording

i s

d e s c r i b e d

p r o v i d l n g

by

t h e REAL

PROPERTY

ACT

1900(See

S e c . 6 S t r a t a

T i t l e s )

A

PERSON

beco.ne

a

P R O P R I E T O R o f

a

U N I T

In

STRATA

TITLES

SCHEME

p u r s u a n t

I t s

own

d e c l s s l o n

I n

buylng

such

U N I T

f ro -

ano the r

PERSON

i n n o r n a l

c l r s c l m s t a n c e s

a

meaber

o f

t h e

p a r t l c u l a r

STRATA

SCHEME

who

d l spose

by

such

U N I T

a t

h i s

qwn

D I S C R E T I O N ,

b e i n g

n o t

..

7 .

b l n d e d

e x a n p l e

f o r

a s UNITS(See

COMPANY

TITLES

S e c . 5 4 ( 2 ) S t r a t a

T l t L e s ) .

I n r e l a t i o n t o

t h e

COMMON PROPERTY,for whlch

r e a s o n s

t h e

S t r a t a

T i t l e s

i s

a lso

c r e a t e d ,

t h e COMMON

PROPERTY b e c m e

r e g i s t r e d

i n

a

s e p a r a t e

CERTIFICATE

o f

TITLES

b e a r l n g

t h e

above

NAME

the

T H I N G .

Then

a l s o It n a y be

s a l d

t h a t

t h e

COMMON

PROPERTY

p rov id ing

PART

11* S t r a t a

T l t l e s ,

THE

LAND

I n STRATA

SCHEME

becone f reed of any

encuvbrance

and

I f

e v e n t u e l y

become

s u b l e c t

a n y

t o

r d e r Appor t ionment

e . t . c .

t h e n

a c o r d i n g l y

b

o f

s ta tu tory

charges

Sec .151

S t r a t a

Titles,becone

f r e e d

of

t h a t

c h a r g e s

and

t h e I n d i v i d u a l p r o p r i e t o r s

for

t h e i r

LOTS

b y

I t s

U n i t

E n t i t l e m e n t s

h a v e

t o

p a i d

o u t

t h a t

c h a r g e s .

T h i s

a b o v e

1 s

n e c e s s a r y

t o

know,

be

cause it come o b v i o u s

t h a t

I

doo not

owe

t o t ha t

LANE

a n y t h l n g

n o t

a

' P E N N Y " .

And

i f

I

a l l e d g e d l y w i l l be

owlng

something

then

n o t t o l n d i v i d u a l

t h e

T H I N G , N O T

TO

THE

LAND

b u t

t o t h e

p r o p r i e t o r

u n d e r h l s

NAME

and

not

u n d e r

NAME

w h l c h

i n t e r - a l l i a

c a n

n o t

g l v e

be ing a And when the name used

T H I N G I t s consen t t o u s e

It.

and

i n

COURT

a c t i o n

p r o v l d i n g

S e c . 1 4 7

S t r a t a

T i t l e s ,

a n d

S e c . 3 8 ( l ) ( c )

I n t e r p r e t a t i o n

A c t

1897

as

a m e n d e d

t h e n

t h e

w o r d i n g

MAY

m u s t

be

a t

D i s c r e t i o n .

DISCRETION amy a r r i s e when t h e BODY CORPORATE

becone the AGENT t h e f o r PROPRIETORS

S e c . 2 0 ( a ) S t r a t a

T i t l e s

t h e

SAME

PERSON!

This lnvolved the REGISTRAR - 29 LOTS* 20 PROPRIETORS Of

BODY CORPORATE-the

AGENT

FOR

THE

PROPRIETORS

1s

a c o r d l n g

t o

s c h e a r c h e s

I n

t h a t 29 LOTS.

Sec .20 (b ) STRATA TITLES!

Obvlousely

Sec

.21

and

Sec.24

Strata

T l t l e s

p r e c i s e l y i n d l c a t e t h a t w i t h o u t LOT and t h e obv louse ly DISCRETIONARY POWER o f or over of t h a t LOT -of t h e I N D I V I D U A L . c an n o t be d e a l t .

w i t h t h e

COMMON

P'ROPERTY.

I n t e r - a l l i a

a

COURT

A C T I O N n e c e s s l t

a

consen t

Qf

t h e

person

t o

b e

t h e

PLAINTIFF,whlch

c a n - n o t

be

n a d e

v i t h o u t

h l s

c o n s e n t !

The

S e c . 7 3 ( 5 )

S t r a t a

T l t l e s

1s

s l g n i f l c a n t .

P l ease

r ead

It! see wording

i n r e l a t i o n t o a

PERSON

i n r e l a t l o n t o t h e

STRRTA

SCHEME.

I t

l e t

conc lude

the sense

of

t h e

S e c . 7 3 ( 5 )

A

PERSON

I n c l u d e

s o l i c l t o r s ,

b a r r l s t e r s

blJt

8.

n o t

t h e

CROWN!

BODY

1 s

prov ld ing

Sec .20 (b )

t he

OTHER

BODY

t h a n

the

SAME

PERSON.

( S e c . 2 0 ( a )

S t ra ta

T i t l e s - T H E

AGENT)

THE

T H I N G

1 s t h e NAME

o f

t h e

b o d y

c o r p o r a t e

l t s e l f .

THE

L A N D ,

1s

t h e LAND

whlch

1 s

i n

t h e

CERTIFICATE

O F TITLE

( t h a t T H I N G )

E v i d e n t l y

t o p rec lude such

SCHIZOFRENIC

c l a l m

a s the

solicitor

made

I n h i s a c t i o n s .

THE BODY CORPORATE-THE AGENT DUTIES are

pe r fo rned by the p r o p r l e t o r s f o r whose

e s p e c i a l

b e n e f l t

t h e

A c t

w a s

made

f r e e o f

charge

llpon

e a c h f o r a n o t h e r .

Except FEES I n

t h e

S t r a t a T l t l e s

REGULATIONS

P a r t V.

THERE I S NO PROVISSION I N THE WHOLE STRATA

T I T L E S ACT 1 9 7 3 t h a t a BOEY CORPORATE-THE

AGENT

h a s

t o o r

n a y

f o r

h i s

p e r f o r m a n c e s

c h a r g e t h D u t i e s , S e c . 5 9 S t r a t a

PROPRIETOR

BY

LEVIES

Sec.68

T i t l e s

LEVIES.

E v l d e n t l y

h a r d l y

w e

can

imTagine

tha t

a

r e p a i n t l n g

o f

the bu ld ing wlll

be

jmdertaken

by

a l l p r o p r i e t o r s

i n t h e

sane time.

For

t h a t

r e a s o n

t h e r e

i s i n force a LAW,

Sec. of t h e

Law

Sec.58 By-Law,

S t r a t a T l t l e s .

Thus By-Laws

a r e

d e s l g n e d

t o

ob t ln

f rom

a l l

PROPRIETORS

of

each

LOT

b y

the

BODY

CORPORATE-THE

AGENT f o r ALL OF THEM and th ie r

BENEFIT

S e c . 6 8

S t r a t a

T i t l e s

a s

t h e c a s e

may

be

t h e CONSENT

b y U N A N I M O U S

RESOLUTION

tr,

r p o v i d e t h e m v i t h t h e

aproprlate

s e r v i c e s

For

example

a

LEGAL ADVICE can be

such

s e r v i c e .

Then

1s

a p r o p r l a t e

p u r s u a n t

S e C . 5 8 ( 7 )

S t r a t a T i t l e s

t o made

a

BY-LAW,

w h i c h

t o

be

v a l l d

n e c e s s l t

p r o c e e d i n g s

a s

S e c . 5 8 ( 3 ) S t r a t a

T l t l e s

say .

The

s c h e a r c h e s

s h o v e

t h a t

n

o

r e g l s t r a t i o n

o

f

any By-Law,

1 s r e g l s t r e d i n r e g a r d s of

any o f

t h l s

a

p e c t s

t h i s

i n

p r o c e e d i n g s - A c t i o n s .

Once

a g a i n

t h l s

S o l i c i t o r s

t r y

t o

o b t i n

money,

t h r u

t h e body

co rpora t e

accoun t s

on

tha t

body' S

c o r p o r a t e ' S

Agents

money,

from

i t s

a c c o u n t s .

T h a t s

a

f r a u d

o n

t h e

b o d y

corporate-Crimes A c t 1900.

Lets

r e v e r s e

l n m a g l n a t i o n

i n

t h e

C o u r t

d e c l s s l o n

and

make

t h e

C o s t s

t o

be

paid

by

the body S t r a t a

corpora te -agent .

Provld lng

Sec .147

T i t l e s

I n v o l v i n g

ALL LOTS.

A

f l r s t

mortgagee

a

b i g

Company

i n f i n a n c e s

p e r h a p s

t h e

STATE

BANK,

p r o v l d l n g

S e c . 5 9 ( 6 )

S t r a t a

T i t l e s

i s

s e v e r a l y

and

j o i n t l y

l i a b l e

w l t h

t h e

P R O P R I E T O R .

I

t h l n k

t h a t

t h e y

w i l l b e

s u r p r l s e d

t h a t

a

S O L I C I T O R

name

BUSH

h a s

9 .

l n c l u d e d

t h e m

i n

a n y

o

f

t h e

COURT

a c t i o n s

w i t h o u t t h i e r c o n s e n t t o b e

PLAINTIFF.

To

e x p l a l n how

w e come

t o t h l s C o u r t ,

w e

s h a l l go

b a c k i n t o

1980.

where

I

h a v e s t a r t e d

a s a

(forner)PROPRIETOR a n

c t l o n

" C I V I L

CLAIMS"

and

a s STRATA TITLES p r e s c r l b e

b

y

Sec.62 and t h e b o d y c o r p o r a t e s

1 5 0 .

For money

t h a t it s h a l l be

on

name

a c c o m t

m

the

bank.

Thus

p r o v l d i n g

t h a t

t h e

money

w a s

on

p rov ld ing

Sec .68 (1 ) (0 )

c

and

-no t

be

d i s b u r s e d

p r o v i d l n g

S e c . 6 8 ( 2 )

S t r a t a

T i t l e s .

That

money

I

h a v e

p a l d

t h a t

a c c o u n t s ,

be

callse

i t was

t h e r e as

a

r e s u l t o f

i l l e g a l

Act ion

aga in

by

sol ic i tors Hones & Ledingham

I n t h e name

of

t h e T H I N G ,

t h a t

I

was

t h e

PROPRIETOR

e n t e r e d

i n

t h e S t r a t a R o l l o f

t h e

s t r a t a scheme

S P

3 6 7 0 .

I n o t h e r

w o r d s

t h e

sol lc i tor

h a s p u t

a l s o m y s e l f

a s

a

PLAINTIFF

aga ins t myse l f

as a

DEFENDANT.

The

S t i p e n d i a r y

M a g i s t r a t e

I n v o l v e d

was

n o t

r e d y

t o unders tand

my

c l a i m s .

A t

l a t t e r d a t e

I d i d n o t comme

to

t hehea r lng

be

ing

f a r - away

s i c k t h e costs a g a l n s t my.

s o l i c i t o r

h a s

f o r c e d Then when

d e c i s s i n n

f o r

I h a v e

a s k e d

t o

be PUT THE MATTER ASSIDE,

S o l i c i t o r Ledingham

h a s

a p p l i e d

for

t h e

so

c a l l e d

SECURITY

FOR

COSTS

aga in

on

beha l f

of

t h e THING.

Then

I

h a v e d e c i d e d

t h a t

will be matter for Supreme

C o u r t

t o

d e c i d e .

I

submit

p rov ld ing

the

JUSTICES

ACT

the

d e c i s s l o n o f

the

S t l p e n d l a r y

M a g i s t r a t e

b e f o r e

Supreme

Court .

The

m a t t e r

Come

b e f o r e

t h e

SC

few times

f o r MENTION.But

one

day

M r

S o l l c i t o r

L e d l n g h a n

h i s

d

Barrlster

h a s

f l n d

MR.

Jvxtice D.HUNT,

who

t a k e t h e

matter

be fo re h im

fo r hea r ing unde r

p r o m i s e

t h a t

h e

w i l l be

r e d y

v i t h

m y s e l f

i n

f e w minu tes .

I t was

n o t

f e w

m i n u t e s ,

I

hate

d e s p e r a t l y

defended

myself

b e l n g

n o t

p r e p a r e d ,

t h o u g h t

t o be

aga in

fo r

men t ion

t o

set

t h e

t lme

f o r

h e a r i n g .

The

o r d e r of

Mr

J u s t l c e Hunt

was

as

can

be

read f rom a r r i s e t o t h e

it, t h a t

h e

d l s m i s

my

a p p l l c a t l o n

and

t h a t I

h a v e a l l e d g e d

t o

p a y

costs

any

costs

t h a t

d e f e n d a n t

( i t was

t h e

s e c o n d d e f e n d a n t ' n a g l s t r a t e

S t i p e n d i a r y

t h e

f o r

has

appea red

t he

CROWN

S O L I C I T O R

who

d i d

no t

ap ly

for

Cos

ts

and

has

asked

t o

be excused Ev lden t ly

from the proceedings.

M r

J u s t l c e

HUNT,

d e c l s s i o n

d l d

n o t

merr i t

from my

s l d e tr,

f o l o w

f u r t h e r l y

a s

I

h a v e b e l i e v e d .

10.

B u t

t h e S o l l c i t o r h a s p u t

I n

t h e

NAME of

the

T H I N G , h i s

expenses

fo r

T A X I N G .

H e

c l a i m

I n t e r - a l l i a

t o

s p e a k

w l t h

h l s

C L I E N T

t h e

T H I N G

G?

Then he submlted vi

thout

warnlng myself

again

i n t h e LOCKHARDT.

name

of

t h e T H I N G

b e f o r e

M r J u s t i c e

T h e r e

t h e

BARRISTER

Involved

has

e v e n f i n d maklng compar iss lnn wi th

a

p r e c e d e n t

r e l a t l n g

t o

a

COMPANY

th l s

THING-name.

H l s

Honour

M r

J u s t l c e

LOCKHARD

was

more

c a u t i o u s

i n

h i s

d e c i s s i o n

he

h a s

a d ~ o u r n e d

the

BANKRUPTCY NOTICE

But

made

l n d e f i n e t e l y .

mentlon

tha t

it

should

b e a p l l e d f o r

COSTS.

Myself

b e i n g

n o t

LAWYER

I

h a v e

f i n d

t h e

way

t o

o b l e c t

t o hls

d e c i s s l o n by

way

t o APPEAL

BEFORE

FULL

FEDERALL

COURT. THE FULL

FEDEIZAL

COURT

has

d i smis sed

a y a p p e a l

b u t

c l ea r ly h a s

d i s t a n c e s

I t se l f

t o

make

d e c i s s i o n

i n

r e l a t l o n

to

t h e

N . S.W.

Law

t h e

S t r a t a

T l t l e s

A c t 1973.

A s It can b e

r e a d

from

t h e

d e c l s s i o n ,

t h e

q u e s t l o n of

COSTS

i s more

i n f o r m a t i v e

a n d

t r a d i t i o n a l ,

t h a n

commit

i t s e l f

the

COURT

t o

make

d e c i s s i o n

i n r e l a t i o n

t o t h e ACT

of

a

S t a t e w h i c h touching

t h e y

h a v e

r e s p e c t e d

n o t

I n

any

of i t s aspects, of the Law i n

concern.

Now o n ,

t h e r e 1s

a g a l n

a

SCHYSOFRENIC CLAIM

b y

the

so l ic i tor

and

Its

a c o m p l i c e s

I n

t h e

Act ion;

Sol lc i tors Hones h Ledlngham

V.J.

RAY

P t y .

LTD.

c l a iming t o be

appo in ted

by

t h e

T H I N G

as

mannaglng agent Sec .78 St ra ta

T i t l e s .

T h l e r

o f f i c e r s

o f

V . J .

RAY

P t y .

L td .

Mr

P . O .

NEWLAND

Mrs

M.E.

P o l l a r d

Mr

M.Ch.DONNELLY

and K r . R . B r i a n

Trustles.

M r R .

KAARD s e c r e t a r y of

the

SP

3670

t h e o n l y

P R O P R I E T O R

o f

t h e

L o t

I n SP

3670

lnvolved

d i r e c t l y I n t h i s matter.

I

bel leve

t h a t

t h i s C o u r t h a v e u n d e r s t a n d

m y

c la ims

and

w i l l

d l smis

the

P E T I T I O N

o n

t h e

GROUNDS

t h a t

It

i s

a

ILL

minded

an

c o n s c i e v e d

i n

m i s c o n s t r u c t l n g

t h e

LETTER

OF

LAW

r e l e v a n t

STRATA

TITLES

ACT

1 9 7 3

a s

amended.

I b e l l e v e favour ,

t h a t

t h e

C o s t s

w l l l be

made

i n my

and

I f

t h i s

C o u r t has

the power ,

w i l l

award

my

t h e a l l c Q s t s a l l

way

i n t h l s m a t t e r

i n c o n c e r n .

I l e t the COURT Immaglne how f a r t h e

CONTEMPT

Qf COURT

by

t he

pe r sons

i nvo lved

by

t h l e r

..

p a r t i c i p a t i o n

t o

t h i s

I11

ac t ion

I

may

m e n t i o n

t h a t

I have

inforwed

them

by

l e t t e r ,

wha t s t hey

a re

dooing wrong.

Being

nyse l f

no t

a lawyer I doo

no t

know

i f

t h i s

C o u r t h a s

t h e

power t o award

ny

DAMAGES

ocured t o my

by t h i s

a c t l o n p u t t i n g

ny

i n t o

t h e s h a m e co-owner

of

BANKRUPTCY.

IT I n t e r - a l l l a

a

o f

p rope r ty

where

I

l i v e a

p r o p e r t y

which

i s

e s t i m a t e

v a l u e

a t

t h i s

d a t e

i s

b e t w e e n

1 0 0 . 000

and

130

.OOO

d o l l a r s .

I t

i s

m o r t g a g e d

b y

l e s

t h a n

o n e

q u a r t e r

o f

I t s

e s t ima ted

sale

v a l u e .

I

manage

a f f a i r s

n o t

THE BANKRUPTEER'S WAY

a s

t h e

HUNGRY

f o r

$1.600.

I n f l a t i o n a r y

moneys,

t r y

t o

s u g e s t

h a t

I m

golng

such

way.

If

t h i s

C o u r t

h a s

the

power

t o award

t h e DAMAGES

I

a p l y f o r t h e n .

I

b e l i e v e

t h a t

t h l s

C o u r t

w i l l

t a k e

t h e

o p o r t u n l t y

t o

d e v o n s t r a t e

t h l e r

s t a n d

frvn

t h e

mockery

nade

f ron

the

a lso

p rev ious

COURTS

t h a t

t h i s

s o l i c i t o r s

h a v e

n a d e ,

as

e v i d e n t l y

i n

r e l a t i o n

t o

the LETTER

O F L A W ,

d l d

it.

There was

n o t

I n the p roceed ings

be fo re ,

any

r e s p e c t f o r

"MAGNA

CARTA"

by

t h l s s o l i c i t o r s .

Thls

Notice

i s

f i l l e d by

myself

JOSEPH

HEDRLIN

( a person)

i n n o t

p r a c t l c i s s i n g

t h e

FURRIER profession f o r many years .

whose

a d r e s s f o r

servlce 1s:

213 Connonwealth Street ,Sydney

N.S .W.

2010

Telefon:

2 1 1 53

20

A f t e r

n o t i n g

t h e

p e t i t i o n i n g

c r e d i t o r '

S

o b j e c t i o n s

t o

the s a i d ~ u d g m e n t d e b t o r t o p r e s e n t a r g u T e n t i n s u p p o r t o f h l s

no t lce

o p p o s i n g

t h e

p e t i t i o n ,

t h e

C o u r t

c a l l e d

o n

t h e

opposition.

Thls

he

d id

be tween

12 .15

p . ~ .

and

3.35

p . m .

( e x c l u d i n g

1

hour

for

l u n c h ) .

A

l a r g e pa r t

o f

t h i s

t l T e

w a s

t aken

~p

b y

d e t a i l e d

references by

him

t o n m e r o u s

s e c t i o n s

of

t h e S t r a t a

T i t l e s

A c t ,

1973

(N.S.W.)

and

t h e I n t e r D r e t a t i o n

A c t

1837

( N . S . W . ) .

Curlng

t h i s

tiTe

t h e C o u r t d r e w t h e d e b t o r ' s a t t e n t i o n t o

S .52 ( 2 ) ( a ) of

t h e

B a n k r l l p t c y

A c t .

I t

i s

n o t e d

t h a t

h e

Full

C o q r t

l n

i t s

~ u d g - n e n t

d e l i v e r e d

2 7

Oc tobe r

1982

had

s t a t ed

t ha t

" w e

nake

l t

1 2 .

c l e a r

t h a t n o t h i n g

we

h a v e s a i d a f f e c t s

t h e a p p e l l a n t ' s

( t h e

d e b t o r ' S )

r l g h t

a v o i d

t o

t h e

c o n s e q u e n c e s

of

t h e

a c t

of

b a n k r u p t c y h e h a s c o m i t t e d b y e s t a b l l s h l n g a t t h e h e a r l n g o f a n y p e t i t i o n p r e s e n t e d a g a i n s t h i T t h a t h e i s a b l e t o p a y h i s

d e b t s

. ' I

A t

t h e c o n c l u s l o n

of

his

a r g w n e n t s

t h e C o u r t

i n v l t e d

t h e

d e b t o r

t o p r e s e n t a n y e v i d e n c e h e w l s h e d

t o p l a c e b e f o r e

t h e

Court

i n

r e s p e c t

o f

a n y

T a t t e r .

N o

evidence

was

g iven

by

t he

debtor or anyone

on

h i s b e h a l f

i n

t h e p r e s e n t p r o c e e e d i n g s .

F u r t h e r ,

t h e

d e b t o r

i n

t h e

p r e s e n t

p r o c e e d i n g s

a g a i n

d l s p u t e d

t h e

r e t a m e r

Qf

t h e

p e t i t i o n i n g

c r e d i t o r ' s

s o l l c i t o r .

Similar

c h a l l e n g e s

w e r e

n a d e

b y

h i T

a t

h e

h e a r i n g

o f

t h e

p r o c e e d i n g s

i n

t h e

S u p r e n e

C o u r t

q f

New

S o u t h

W a l e s ,

b e f o r e

Lockhart J. and

be fo re

t he

F u l l

Court .

A s

was

t h e

c a s e

I n

t h e

e a r l l e r h e a r l n g s a n y q u e s t l o n o f f a c t l n v o l v e d I n

connection

wl th

t h e

r

t a i n e r

o f

t h e

body

c o r p o r a t e ' s

l e g a l

r e p r e s e n t a t i v e s

produced

no

T o r e

t h a n

a s s e r t i o n s

w h i c h ,

t o

s a y

t h e

l e a s t ,

w

e

r

e

unproven

and

af

forded

no

suppor

t

fqr such

a

c h a l l e n g e .

A t t h e

c o n c l l l s i o n

o

f

t h e

d e b t o r ' s

a r g u w e n t s

i t

was

c l e a r

t o

t h e

C o u r t

t h a t

t h e r e

was

no

ev idence

be fo re

t he

Cour

t

t h a t

h e

was

a b l e

t o

p a y

h i s

d e b t s

( c f .

Re

S a r l n a ;

Ex

p a r t e

C o u n c i l

of

The

S h l r e

o f

W o l l o n d l l l y ,

4 3

FLR

1 6 3 ;

S a r i n a

- v -

3

4 8

FLR

3 7 2 ) .

F u r t h e r ,

t h e

d e b t o r

had

f a i l e d

t o s a t l s f y

t h e C o u r t

t h a t

t h e r e

was

any

ground

w h i c h

p r e v e n t e d

t h e

C o u r t

f r o T

h e a r i n g

a n d

d e t e r n l n l n g

t h e

-

p e t l t l n n

h e r e l n .

The

T a t t e r s

r a i s e d

I n

t h e

r m t l c e

s e t

o u t

a b o v e

..

.-

1 3 .

i n

r e s p e c t

o f

n a t t e r s

w h i c h

h a d

a l r e a d y

been

d e t e r n i n e d

b y

t h e

Court are matters wh ich

s

ou ld

no t

re -opened

be

t h l s

In

proceedlng

and

those

d e t e r n l n a t i o n s

a r e

b l n d i n g

a s

b e t w e e n

t h e

1

par t les .

Nothing

was

p u t t o

t h e

C o u r t

as

p r e s e n t l y

c o n s t i t u t e d

whlch

would

permit

a

d l s t u r b a n c e

of

s u c h

d e t e r n l n a t i o n s .

L i k e w l s e ,

t h e

d e b t o r

h a s

f a i l e d

i n

h l s a t t e n p t

t o

show

t h a t the

Supreme

Court

of

N e w

South Wales

was

I n e r r o r

i n

d l s m l s s i n g

h i s

a p p l i c a t i o n

a g a i n s t

t he

p e t i t l o n l n g

c r e d i t o r

a n d

a w a r d l n g

the

p e t l t i q n i n g c r e d i t o r

l t s c o s t s i n t h o s e proceedings.

Accordingly

t h e

C o u r t

so

r u l e d

l n d l c a t i n g

t h a t

it

would

publ ish

I t s

r e a s o n s

I n

t h i s r e g a r d l a t e r .

T h e r e a f t e r

the

Cour t

p

roceeded

wi

th

the

hear

ing

of

the

c r e d i t o r ' S

p e t l t l o n

i n

t h e

u s u a l

way.

During

s u c h

h e a r i n g

the

d e b t o r

o b j e c t e d

t o

the

t e n d e r

o f

t h e

m l n u t e s

o f

t h e

n e e t i n g

o

f

the

Council

o f

the

Proprietors

o f S t r a t a

P l a n No.3670

he ld

on

1 5

Jllne

1982

and

the

Strata

Managing

Agent

's

AgreeTent

dated

1

J u l y

1982 made

between

the

P r o p r l e t o r s of

S t r a t a P l a n

No.3670

and

V.J.

Ray

Pty.

Limited.

Such

objections were

over ru led .

Paragraph

4

of

the

p e t i t l o n

a s

f i l e d

w a s

amended

s u b s t l t u t i n g

"27

October

1982"

fo r

"10 November 1 9 8 2 "

a p p e a r i n g

t h e r e i n .

S e r v i c e

o f

t h e

p e t i t l o n

so

anended

w a s

d i spensed

w i th .

Thls

amendnent was

tr,

conforn

w i t h

t h e

p r o v i s i o n s

o f

S . 4 1 ( 7 )

o f

t h e

A c t ,

27

October

1982 being

the

d a t e when

the F u l l C o u r t

de te rn ined t h a t t h e

C o u r t

was

n o t

s a t i s f l e d

t h a t

t h e d e b t o r h a d

a

c o u n t e r - c l a l n

set-off

or

c r o s s

d e n a n d

e q u a l

t o

or

e x c e e d i n g

t h e

s u n

s p e c i f i e d

i n t h e

b a n k r u p t c y n o t i c e .

14.

B e m g

s a t l s f l e d

t h a t

the

deb to r

had

coT 'n l t t ea

t he

ac t

of

b a n k r u p t c y a s a l l e g e d

I n

t h e p e t i t i o n a s

a.nended

and

w i t h

t h e

proof

o

f

the

o

ther

' nna t te rs

of

whlch

s.52(1)

of

t h e A c t

r e q u l r e s

p r o o f ,

t h e

C o u r t on

18 May

1983 'nade

a

s e q u e s t r a t i o n

o r d e r

a g a i n s t t h e e s t a t e

of

t h e d e b t o r a n d o r d e r e d t h a t t h e p e t i t l o n l n g

c r e d i t o r ' s

costs

i n c l u d i n g

r e s e r v e d

c o s t s

be

p a l d

I n

a c c o r d a n c e

w l t h t h e

A c t .

c

Details
AGLC
Joseph Hedrlin v The Properties of Strata Plan No 3670 [1983] FCA 90
Case
[1983] FCA 90
Decision Date

CaseChat Overview and Summary

Joseph Hedrlin filed a notice of intention to oppose a creditor's petition for his bankruptcy. The creditor objected on the basis that the notice was not in accordance with Bankruptcy Rule 20. The court had to decide whether the debtor's notice complied with the rule and if there were any grounds to prevent the hearing and determination of the petition. The court noted that the debtor's notice did not refer to any statement in the petition that he intended to deny or dispute. The debtor argued that the petition was an inter-alias action and intended to cause him injuries. However, the court found that the debtor failed to provide any evidence to support his claims and did not satisfy the court that there was any ground which prevented the hearing and determination of the petition. The court therefore dismissed the debtor's notice and proceeded with the hearing of the creditor's petition. The debtor also objected to the tender of the minutes of a meeting of the Council of the Proprietors of Strata Plan No.3670 and the Strata Managing Agent's Agreement dated 1 July 1982. However, the objections were overruled. The court made a sequestration order against the debtor and ordered that the creditor's costs including reserved costs be paid in accordance with the Act.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.