Re Gates, J.K. Capita Financial Group Ltd Ex parte (formerly known as the City Mutual Life Assurance Society Ltd

Case [1988] FCA 770


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NOT FOR DISTRIBUTION

IN THE FEDERAL COURT OF AUSTRALIA 1
)
AUSTRALIAN CAPITAL TERRITORY )
) No. P 1124 of 1988
BANKRUPTCY DISTRICT OF THE STATE )
OF NEW SOUTH WALES .AND THE )
AUSTRAL1.W CAPITAL TERRITORY )
Re :  JEFFREY KENNETH GATES

Judgment Debtor

Ex parte: CAPITA FINANCIAL GROUP LINITED
(formerly known as The City
Mutual Lifs Assurance Society
Limited 1

Judgment Credltor

C B : Neaves J.

- DATE: 18 August 1988 r .

R TEMPORE

REASONS FOR JUDGMENT

Before the Court is a creditor's petition flltd on
I
behalf of Capita Financial Group . Limited seeklng a
sequestration order against the estate of Jeffrey Kenneth
Gates.

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The petition is based on the failure of the debtor to

comply with a bankruptcy notice served upon him on 2 December
1987. The debtor has given notice of his intention to oppose
the petition. The only ground advanced in support of that
notice 1s that the Court should decline to entertain the
petition on the ground that there 1 s a reasonable apprehension
of bias on the part of the Court. Thls arises largely, though
not entirely, from the reasons for ~udgment whlch were given on I

1 2 FebruarT 1988 in proceedings by the debtor to set aside the

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bankruptcy notice upon which the petition is founded.
I have attended carefully to the matters to which the
debtor has referred in support of hls opposition to the

petition. All I propose to say is that I do not thlnk any
sufficlent ground has been shown to warrant the Court decllning

to proceed with the hearing of the petition.

I am satisfied that the debtor has committed the act

of bankruptcy alleged in the petltion as amended. I am
satlsiied with the proof of the other matters of whlch sectlon

SZ(1) of the Act requires proof. I make a sequestratlon order

agalnst the estate of the debtor. I order that the costs of
the petitloning creditor, lncluding reserved costs, be taxed
and paid according to the statute anb I direct that a draft of

this order be delivered to the Reglstrar within seven days In

accordance wlth rule 124(2) of the Bankruptcy Rules.

I certify that this and

the precedlng page are a true copy of the Reasons

for Judgment herem of I
%he Honourable Mr Justice
Neaves . I

Assoclate

Dated: 18 August 1988

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Judgment debtor In person

Counsel for the judgment creditor : Mr J . B . Timbs
Solicitors f o r the judgmenr: creditor
: Murph:? & Maloneg
Date of hearing : 18 August 1988
Note: Settlement and entry of orders 1 s dealt wlth ln rule 1
124 of the Bankruptcy Rules. l
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Details
AGLC
Re Gates, J.K. Capita Financial Group Ltd Ex parte (formerly known as the City Mutual Life Assurance Society Ltd [1988] FCA 770
Case
[1988] FCA 770
Decision Date

CaseChat Overview and Summary

The case before the Federal Court of Australia concerns a creditor's petition filed by Capita Financial Group Limited (formerly known as The City Mutual Life Assurance Society Limited) seeking a sequestration order against the estate of Jeffrey Kenneth Gates, the debtor. The petition arises from Gates' failure to comply with a bankruptcy notice served upon him on 2 December 1987. Gates has indicated his intention to oppose the petition, arguing that the court should decline to entertain it due to a reasonable apprehension of bias on the part of the court. This argument largely stems from the reasons for judgment given on 12 February 1988 in proceedings by Gates to set aside the bankruptcy notice.

The court considered the debtor's contentions regarding the apprehension of bias but found that no sufficient ground had been shown to warrant the court declining to proceed with the hearing of the petition. The court was satisfied that Gates had committed the act of bankruptcy as alleged in the petition. Additionally, the court confirmed that all required proofs under section 52(1) of the Act were met. Consequently, the court granted a sequestration order against the debtor's estate and ordered that the costs of the petitioning creditor, including reserved costs, be taxed and paid according to the statute. The court also directed that a draft of this order be delivered to the Registrar within seven days in accordance with rule 124(2) of the Bankruptcy Rules.

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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