Re Feiersinger, F. Ex Parte Intersuisse Ltd

[1992] FCA 427

4-23 , W

JUDGMENT No. .. . a . . . . . . . .

C A T C H W O R D S

Bankru~tcy - creditor's petition for sequestration order - rule 15 of Bankruptcy Rules - service of bankruptcy notice by

delivering it to solicitors who had acted for debtor at a much

earlier stage - whether personal service effected.

RE FRITZ FEIERSINGER: EX PARTE INTERSUISSE LIMITED

No. P2000 of 1991

29 MAY 1992

BEAUMONT 3.
SYDNEY

. ,- ,,... .

. S 2 ' , ' . , 3 % .: .., .. 1 I. I . .

IN THE FEDERAL COURT OF AUSTRALIA )

GENERAL DIVISION	1
1 No. P2000 of 1991
1

=	Y	C	T	P	U	R	K	N	A	B	)
OF NEW SOUTH WALES	)
FRITZ FEIERSINGER

EX PARTE:  INTERSUISSE LIMITED

CORAM:	Beaumont J.
DATE
--	29 May 1992
U::	Sydney

MINUTES OF ORDER

THE COURT ORDERS:

Petition dismissed, with costs.

Note-
--	Settlement and entry of orders is dealt with in Bankruptcy Rule 124.

> .

,..L, ,"

. . % ,

I *

' !

I . ' . . ' > '

d , ,. ' i.

'. ... .: ' "

.L . ,., I

It is common ground that the debtor did not effect payment to the judgment creditor in accordance with clause

2(1) of the deed. On behalf of the petitioning creditor, it

is now submitted that the service of the bankruptcy notice was validly effected because it was made in accordance with the provisions of clause 4 of the deed. I have difficulty in accepting this argument.

Although it is not necessary that the bankruptcy
notice be left in the actual corporal position of the debtor,

(see Re Ditfort Ex Darte Commissioner of Taxation, (1988) 19 FCR 347, per Gummow J at 360; see also Re Hudson Ex Darte G Crane & Sons Limited, (1990) 25 FCR 318) the requirement that

the document be delivered to the debtor personally must be substantially complied with. In my opinion, this was not done here. Pincus J reached a similar conclusion in Re Hanlin,

(1985) 9 FCR 357.

On behalf of the petitioning creditor, reliance was

placed upon my decision in Ditfort v (1990) 26 FCR 72

but referring to Hanlin's case I there said, at page 76:

"I agree that the question whether a statutory act of bankruptcy has occurred, going as it does to matters of status and potentially at least, to proprietary rights, cannot depend upon a merely private agreement between a debtor and one of his or her creditors as to the date of

service. 'l

It is next submitted on behalf of the petitioning

IN THE FEDERAL COURT OF AUSTRALIA	)
1
GENERAL DIVISION	1 NO. P2000 of 1991

1) 1

OF NEW SOUTH WALES 1

RE :  FRITZ FEIERSINGER

EX PARTE:  INTERSUISSE LIMITED

CORAM:	Beaumont J.
DATE :	29 May 1992

REASONS FOR JUDGMENT

On the hearing of a creditor's petition, the debtor has opposed the making of a sequestration order on the ground that the bankruptcy notice was not properly served. By rule 15 of the Bankruptcy Rules, unless otherwise ordered, and no such order was made here, service of a bankruptcy notice shall be effected by delivering the notice to the debtor personally.

Service of the bankruptcy notice dated 27 March, 1991, was purportedly effected in the present case by delivering it to Corrs, Westgarth and Chambers, ("Corrs"), a firm of solicitors on 8 April, 1991. Corrs then carrying on practice under the name of Westgarth Middleton had acted for the debtor in previous bankruptcy proceedings. In 1990 the parties entered into a deed ("the deed") which is annexed hereto as Annexure A.

creditor that any defect in the service ought to be excused under section 306 of the act. Reliance is placed upon the decision of Lucas J in Re Woodlev: Ex varte The Bank of New South Wales (1971) ALR 155 excusing what his Honour described as "a purely technical objection".

In my view this is not such an objection, especially having regard to the circumstance that Corrs or Westgarth's were acting as solicitors for the debtor at a much earlier stage. The court is usually reluctant to excuse under section

306 in the present area, see the observations of Gummow J and

Pincus J in Ditfort and Hanlin at 359 and 359 respectively; see also Re Lonq (1975) 6 ALR 338. It follows in my view, that service of the bankruptcy notice has not been established. The petition is dismissed with costs.

I certify that this and the preceding two

(2) pages are a true copy of the Reasons

for Judgment herein of his Honour Mr.

Justice Beaumont.
Associate
Dated: 29 May 1992

Solicitors for Debtor:	Corrs, Westgarth & Chambers
Solicitors for Petitioning
Creditor:	Webeck Farland Pender
Date of hearing:	12 May 1992
Date Judgment delivered:	29 May 1992

ANNEXURE A.

THIS DEED i s made the	day of	1990
BETWEEN

FRIIDERICH PAUL PEIERSINGER of 27 Parlc S t r e e t . Sydney, New South Wales

( r e f e r r e d t o i n t h i s Deed	as	" the Debtor")	of	the	one p a r t
AND

INTERSUISSE LIUITED a company incorpora ted i n New South Wales and havin'g

i t s address i n t h a t S t a t e a t Level 7 , 2 Bligh S t r e e t , Sydney ( r e f e r r e d t o i n

t h i s Deed a s " the Credi tor") of the o the r p a r t

A . The Credi tor has obta ined a Judgment dated 17 November 1989, be ing

No. 050246 of 1989, aga ins t the Debtor ( r e f e r r e d t o i n t h i s Deed a s

" the Judgment").

B. The Credi tor has brought a C r e d i t o r ' s P e t i t i o n aga ins t the Debtor

being No. 0243 of 1990 f o r the t o t a l sum of $353,534.55 being the sum

of $340,035.61 owing under the Judgment and $13,498.94 being f o r

i n t e r e s t on the Judgment debt a t 21% per annum from 20 November 1989

t o 29 January 1990 ( r e f e r r e d t o i n t h i s Deed a s " the C r e d i t o r ' s

P e t i t i o n " ) .

C . The C r e d i t o r ' s P e t i t i o n i s due t o be mentioned on 4 June 1990 a t

which time the Credi tor has undertaken t o the Federal Court of

Aus t r a l i a	e i t h e r t o proceed with	the hear ing o r seelc	t o have	i t
dismissed.

D . The Credi tor has agreed t o seek t o have the Creditor's P e t i t i o n

dismissed on 4 June 1990 on condj t ion t h a t the Debtor e n t e r s i n t o

t h i s Deed.

NOW THIS DEED WITNESSES a s fol lqws.

1. Subjec t t o the provis ions of t h i s Deed, t h e Credi tor agrees t o seek

t o have the C r e d i t o r ' s P e t i t i o n dismissed on 4 June 1990.

2. The Debtor covenants and agrees t o s a t i s f y the Judgment by e i t h e r :

(1)	paying t o the Credi tor by banlc cheque the sum of $500,000 on
o r before 15 June 1990; o r
(2)	paying t o the Credi tor on o r before 30 June 1990 the sum of $500,000 p l u s i n t e r e s t a t the r a t e of 22% pe r annum on t h a t
amount c a l c u l a t e d from 15 June 1990 t o the day of payment.

The Debtor covenants and agrees t h a t i f the Debtor does not e f f e c t payment t o the Credi tor i n accordance with c lause 2 then the Credi tor

s h a l l be e n t i t l e d t o e i t h e r :

(1)	proceed with enforc ing the Judgment; o r
(2)	sue f o r enforcement of the debt owing pursuant t o c lause 2(2)
of t h i s Deed.

4. I n the event t h a t the Credi tor e l e c t s t o proceed pursuant t o c lause

3(1) of t h i s Deed, the Debtor hereby agrees t h a t s e r v i c e of a

Bankruptcy Notice i s e f f e c t i v e upon him provided the s a i d Bankruptcy Notice i s served upon Messrs Westgarth Middletons of 39 Martin P lace ,

Sydney i n the s a i d S t a t e .

5. I f any provis ion of t h i s document s h a l l be determined by any s t a t u t e

o r any cour t having j u r i s d i c t i o n t o be i l l e g a l , i n v a l i d , void o r

voidable the l e g a l i t y o r v a l i d i t y of the remainder of t h i s document

s h a l l no t be a f f e c t e d and the i l l e g a l , i n v a l i d , void o r voidable

provis ion s h a l l be	deemed de le t ed from i t t o the same ex ten t and
e f f e c t a s i f never incorporated i n it bu t the remainder of	t h i s

document s h a l l continue i n f u l l force and e f f e c t .

6 . Headings a re i n s e r t e d i n t h i s document f o r convenience only and do

not a f f e c t the i n t e r p r e t a t i o n o r cons t ruc t ion of t h i s document.

7 . A l l n o t i c e s , demands, consents , e l e c t i o n s o r o the r communications of

any na ture requi red t o be served given o r made under t h i s document:

(1) s h a l l no t be v a l i d unless w r i t t e n , such requirement be ing

deemed t o have been s a t i s f i e d i n the case of any mat te r s en t

by de l ive ry of the o r i g i n a l , by f acs imi l e , by t e l e x , by

telegram, by wi re l e s s te legraph o r by e l e c t r o n i c mall .

( 2 ) s h a l l be s u f f i c i e n t l y binding on the r e c i p i e n t i f :

(a ) where an o r i g i n a l document o r a copy of i t i s s e n t , the

o r i g i n a l i s :

(i)        executed by the sender personal ly i f an

ind iv idua l or under common s e a l i f a company; o r
( i i )	s igned on behalf of the sender by any a t to rney ,
director, s e c r e t a r y , agent o r o the r duly
au thor ised o f f i c e r of the sender.

(b) where no executed o r i g i n a l document i s concerned, the

communication purpor ts t o have been glven by the sender

o r an a t to rney , d i r e c t o r , s e c r e t a r y , agent o r o t h e r

duly au thor ised o f f i c e r of the sender .

( 3 ) s h a l l be deemed t o have been duly communicated i f :

(a ) de l ive red by hand t o the r e c i p i e n t o r i n the case of a

corpora t ion de l ive red by hand t o one of i ts d i r e c t o r s

o r t o i t s s e c r e t a r y , or t o i t s l i q u i d a t o r , r ece ive r o r

r ece ive r and manager:

(b)	l e f t a t :
( i ) the address , i f any, of the r e c i p i e n t as s e t out

a t the commencement of t h i s document:

( i i ) any o ther address previous ly n o t i f i e d i n w r i t i n g by the

r e c i p i e n t t o the sender inc luding n o t i f i c a t i o n by way

of incorpora t ion i n any l e t t e r h e a d used i n

correspondence not more than 12 months previous ly ;

( i i i ) the p lace of business o r abode of the r e c i p i e n t

l a s t known t o the sender; o r

( i v ) i n the case of a corpora t ion i t s r e g i s t e r e d

o f f i c e o r p r i n c i p a l p lace of business:

(C)	posted by pre-paid pos t i n an envelope addressed t o the
r e c i p i e n t a t any one of such addresses: o r <l /'I

(d) s e n t t o an e l e c t r o n i c o r mechanical device s i t u a t e d a t

any one of such addresses.

(4)	s h a l l be deemed t o have been received a t the fol lowing t imes, notwithstanding any knowledge o r suspic ion on the p a r t of the
sender of non r e c e i p t o r of the l i q u i d a t i o n o r r ece ive r sh ip of
t h e r e c i p i e n t i f i t i s a corpora t ion:
( a ) i f de l ive red by hand o r l e f t a t an address , on the da te

on which i t i s s o de l ive red o r l e f t :

(b)	if s e n t by pre-paid p o s t , on the second business day
a f t e r the da te of post ing: o r
( c )	i f s e n t by e l e c t r o n i c o r mechanical means, upon r e c e i p t

by the sender of an answerback code o r number of the

r e c i p i e n t a t the conclusion of the t ransmission.

8 . The f a i l u r e by any p a r t y a t any time o r times t o r equ i re performance

by any o the r p a r t y of any provis ion of t h i s document s h a l l not a f f e c t

the r i g h t t o enforce the same.	The waiver by any p a r t y of any breach
of any one o r more of	the provis ions contained i n t h i s document s h a l l

no t be construed t o be a waiver of any succeeding breach of such

provis ion o r a waiver of the provis ion i n i t s e l f by such pa r ty .

9 . The p a r t i e s hereby agree t h a t t h e proper law governing the

i n t e r p r e t a t i o n and enforcement of t h i s document inc luding a l l

subs t an t ive r i g h t s and ob l iga t ions under i t and the manner, mode and method of performance s h a l l be the law of New South Wales and of the Commonwealth of Aus t r a l i a and the p a r t i e s f u r t h e r express ly agree t o

submit t o the j u r i s d i c t i o n of	the appropr ia te Courts of New	South
Wales and of	the Commonwealth of	Aus t r a l i a i n respec t of any d i spu te

of any na ture whatsoever a r i s i n g pursuant t o o r i n connection with

the provis ions of t h i s document.

10. This document s h a l l be binding upon and enure f o r the b e n e f i t of the

p a r t i e s ,	t h e i r	r e spec t ive	successors	( inc lud ing ,	i n the	case	of
n a t u r a l	persons ,	t h e i r	l e g a l	personal	r ep resen ta t ives )	and	permit ted
ass igns .

Executed a s a Deed.

Signed Sealed and Delivered by )
FREDERIM PAUL FEIERSINGER	)
and i n the presence o f .	1 m-
The Common Seal of INTERSUISSE ) LIHITED was hereunto a f f i x e d )

by a u t h o r i t y of the Board of )

Direc tors and i n the presence	)
o f .	)