It1 THE FEDERAL COURT OF AUSTRALIA
| ClIW ".lUT!-I | WALES DISTRICT REGISTRY |
GENER.r?L DIVISION
IN THE MATTER of the
Bankruptcy Act 1966
| RE | : | JOHN LATTER |
Ex PARTE: HUNT BROTHERS
LIMITED
CORAM: Evatt J
| m: | 7 0 October 1'386 |
| l=: | Sydney |
4.EASONS FOR JUDGMENT
| The | credltor's petitlon herein whlch was presented sn 18 July |
| 1386 was listed for hearlng | on 30 September 1986. | When the |
matter was called on for hearlng Mr Watson, Sollcltor, appeared for the petltlonlng credltor and Mr Johnson, Sollcltor, appeared
| 1 | for | the | debtor. |
| Mr Johnson then Indicated to | the Court that |
| Yesterday (that 1 s 29 | September 1986) there was a meeting of |
| creditors | at | which a composltlon was approved | by | those |
| credltors. My appllcatlon on behalf | of the debtor today |
| would be for the dismlssal of the petltlon. | I understand my |
| friend, Mr Watson, has | an appllcatlon regardlng costs. |
| Mr Johnson then lndlcated that he had flled | an affldavlt sworn by |
himself that mornmu In the matter. After readlng that afflds-llt
the Court was Informed by Mr Watzon that
| My cllent | (the petitlonlng credltor) dld not recelve notice |
of the (creditor's) meetlnq. However, notwlthstanding that,
| I | have seen the Statement of Affalrs | and glven the facts |
| 'llsclosed In | the Statement of Affalrs | whlch 1 s exhibited to |
| m y frlend's affidavlt, | my mstructions are to consent to the |
| dlsmlssal of the | petition. However, this | 1s the third tlme |
| In whlch the petition has been llsted f o r | hearing. | On each |
| prevlous occaslon the creditor | has been ready to proceed. |
| On being asked | as to whether his client had been Fald | out, Mr |
| Watson | Indicated | that | that | was | not | the | positlon | and | that |
| therefore hls cllent zould rank as an | unsecured credltor 13 the |
| zomposltion. | Mr Watson then sought an order for costs and that |
| those costs be paid | In the same prlsrlty | as the costs referred to |
| In the speclal | resolution which 1 s acnexure "JTJ 2 " of | the |
| afildavit of Mr Johnson; | that 15, an order that the petltioner's |
| costs be pald In the same prlorlty | as the costs of Johnson and CO |
| as referred | to as Item C | In the speclal resolution ln the Form |
| 36. |
| The Court | noted | that | the | chairman | of the | sald | meetlng | of |
creditors was one Llndsay Robert Altken and reserved its declslon
In respect of the applicatlon of Mr Johnson.
Havlng considered the matter the Court orders that the petltlon
| herem be dismlssed. | The petitlonlng credltor | 1 s to have | an |
| order that its costs tlncludlng any reserved | costs) | be pald by |
3 .
| the debtor. | Mr Watson's application that that order for costs Se |
| q1-Jen some priority In the composltlon is | refused, the Court |
| belnq of the oplnlon that it has | no power to make such | an order. |
| I certlfy that this and the | id0 |
precedmg pages are a true copy of the
Reasons for Judgment herein of hls
| Honour Mr Justice Evatt | . |
Assoclate
| Dated: 20-10 | -86 |
IN THE FEDERAL COURT OF AUSTRALIA
r m SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION
IN THE MATTER of- the
Bankruptcy Act 1966
| G: | LATTER | JOHN |
EX FARTE: HUNT EROTHERS
LIMITED
W: Evatt J
| IjATE: | 7 0 October 1386 |
| PLACE: | Sydney |
REASONS FOR JUDGMENT
The credltor S petltlon herem whlch was presented on 18 J u l y
1386 was listed for hearmg on 30 September 1386. When the
matter was called on for hearmg Mr Watson, Sollcltor, appeared
f s r the petltlonlng creditor and Mr Johnson, Sollcitor, appeared
for the debtor.
Mr Johnson then indicated to the Court that
| Yesterday (that 1 s 23 | September 1986) there was a meetlng of |
| creditors at whlch | a composltlon was approved by those |
credltors. My application on behalf of the debtor today
| would be for the dlsmlssal of the petltion. | I understand my |
frlend, Mr Watson, has an appllcatlon regarding costs.
3 .
| the debtor. | MY Watson’s appllcatlon that that order for costs be |
| qlven | some priority in the composltlon | 1s refused, the Court |
| belng of the oplnlon that it | has no power to make such | an order. |
c
| I certlfy that thls and the | #do |
precedmq pages are a true copy of the
| Reasons for Judgment herein | of hls |
| Honour Mr Justlce Evatt | . |
Associate
| Dated: | i O - l 0 - S 6 |
- AGLC
- Latter, Re J. Ex Parte Hunt Brothers Ltd [1986] FCA 457
- Case
- [1986] FCA 457
- Decision Date
CaseChat Overview and Summary
Justice Evatt considered the application by the debtor's solicitor, Mr. Johnson, for the dismissal of the petition. Mr. Johnson informed the court that a creditors' meeting had been held the previous day, where a composition was approved by the creditors. Consequently, the petition should be dismissed. The creditor's solicitor, Mr. Watson, indicated that his client had not received notice of the creditors' meeting but had seen the Statement of Affairs. Despite this, Mr. Watson consented to the dismissal of the petition on behalf of his client, who intended to rank as an unsecured creditor in the composition. Mr. Watson also sought an order for costs, requesting that his client's costs be paid with priority over other costs in the composition.
Justice Evatt dismissed the creditor's petition, noting that the petitioner's costs, including any reserved costs, were to be paid by the debtor. However, the court refused Mr. Watson's application for priority of costs in the composition, finding that it had no power to make such an order. Justice Evatt's decision was based on the premise that the dismissal of the petition and the approval of the composition rendered the petition irrelevant, but did not grant the petitioner any special treatment in terms of costs within the composition agreement.
Orders
Orders of the court
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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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