Re Harris, Winifred Anne Madelaine Ex parte Niemann, Ernest Harding

Case [1980] FCA 7

Bankruptcy Act

1 9 6 6 - ss.41(7)

m d 40(1) (g),

“ h f f : d a v i t

as

t o C o u n t e r c l a i x ,

Se::-Off

or

Cross

Dc

.nand” a l l e g i n s ;I

F-lr t ia l set-off or

cross-demand

?.c; l inst

Kt12

p e t 1 t i c l l l n g c r e d i t o r ,

h e l d

n o t

a n a f f l d a v l t

of

tne

!<:Er1

contempla ted

by

t h e s e c t i o n s : o r d c r c f s e q u e s t r a t l o n

marle

on

c z c d l t o r ’ s p e t i t i o n .

U.

l

IN THE FEDEL-,L COLXT or XJST~XAIJA

GENE.W,L DIVISION

_ _ .

BANXRUPTCY DISTRICT @F THE

S‘YAi’i: 01‘ V1CTOA<i:1

T h e p e t i t i o n l n q c r e d i t o r

i s s u e d

a

p c t i t l o n

r e tu rnab le on

2 3 C c t o b e r

1 9 7 9 I n v,hlch

it G:ZS

z1:egcS:

. .

. 2 /

- 2 -

4 .

The

i!-btor,

wlthln

s i x c.ockhs

b e f o r e

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

o:

t h l s petition,

commi t t ed

the

fo l iowing

a c t

of

bankrup tcy nams ly

tha t

shc

f o l l e d on

or

b e f o r e

t h e

1 7 t h c i ~ y

0:'

Septcmlxr ,

.

1 9 7 9 ,

c l t h e r t o ccxnply

w3:h

e

r e q u l r c c e n t s

o i a

bar.kru;lLcy

n o t l c e

s e r v e d on

h c r on

the

; ' l~-s t

day of

S e p t e m m r ,

1 9 7 9 ,

o r

t o

s z t l s r ' y

the

Cour t

t h a t s h e hdd

a

c o u n t c r c l z ~ n ,

s e t - o f f

or cross demand e<::I";l t o or

e x c e d l n g t h e

sum s:,cclllcG

I n

pa rag raph

( a ) of

the

bankr-ptcy

no t ice . 'I

?ne

e v i d e n c e ,

including

a n a f f :

d.vl+.

by

t h e Cebtur,

e s z a b l l s h e d c h a t

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

nz t lce

x e f e r r e d t o I n t h e

p e t i t i o n

WRS

s e r v e d o n

t h e d e b t o r

on

1 Scp tcnbe r ,

1 3 7 9 .

. .

. 3 /

- 3 -

.

.

. 4 /

.

'.

- 4 -

9 .

On

or about t h e 1st d a y o f

DecepLer,

1977, I and a Mr. Locwcnsteln of

Counsel

on

b e h a l f

of

the

sa l< E r n c s t

H a r l i n g Nlemann

agrccd

t o com?romlse

t h c

sald

a p p l i c a t i o n

on

ttlc

fo l lo* . l r .g

terms :

( a )

T h a t t h e

s a l d

E r n c s t Har?lng

Nlemann would adrnlt mc trJ ::rove

a s

a

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

d e b t a d m i t t e d a n d

pa:d

of

$2,50C

as

follows:-

(i)

as a n

u n s e c u r e d

c r e 2 i t o x

fo r t h e sun of

$11,042;

(ii) as

a

p r e f c r c n t l a l

c r c d l t n r

for t h e SUE of $1,175.

( b )

T h a t

h e

s a l d

E r n e c t

Hzr?:nq

Mlenann

and

m y s e l f

wou?C

conse : !~ t

t z

a n o r d e r

i n t h e

ti-rms

set

o u t

l n

pa rag raph

(a) hcrco:.

10. On t h e 1st day of Deccrl>er, 1977, r!:c

Honourable

bir.

J J s t l c z i I z r ~ l s

( I n

Chani:;.rs)

w l t h

thc

c o n s e n t

3:

m y s G l €

anc? I l r .

L o c w n s t e l n on L,enalf o f >!r.

:Ilcrrxm,

orcierc2 i n r e s p e c t o f

the Sal6::ce

oi t h e

P l a l n E l f f ' s

c l a m ~ c l e c t c d

by t h e L:fe?:sxt

o v e r and ahove t he sum cf $2,5CG ai71 t bc2

and pz ld

by

the DcrcndarC,

an2

t i l e uef?r.-:

LZ:,

Ercest liarclxF; LIifi?l:;n

Se 2lrGcter:

k a zt-7: t

m y s e l f

t o ? r o v e

a s a

c r e d l - ~ ~ r

of

t h t . cs;-.:,my

as

f c l l o v s : -

( a )

as a n ~r.securcc!

cresl tor Tor

ne

sum of

$ 1 1 , 0 4 2 ;

( b )

as

a

p r e f e r c n t l a l

crerl l tcr

f o r

t h 2

sum of $1,175.

11.

6et;'eec t h e

d a t e

o f

t h e s a i d @:?e:-

znd

:?

o r

abou t .June

1978, E r n e s t Hardlc;

I;lcmLmr?

d i s t r l h u t e d a n d d ~ s p o . = c d

of

t k . 2

2-sm+ts

of

t h e p r o p e r t y o f

the

co rn~x~ .~y

ts

i t s

c r e d z t n r s .

I n o r

ahou t

Sep tenbc r

1 9 7 8 ,

t h e

sa16

company

was

d i s s o l v e d .

1 2 .

I n

pu rpor t ed

paymen t

of

my

s a l d

e n t l t l e x z n t

t h e

sald

E r n e s t

l lardlr~7 Nlc:mr.n

p a l 2

l n

a d d i t l o n t o t h e sun of

52,500 alreatiiy pa ld

t o me

t h e sum of $1,766.90

o111y and h a s

f a l l e d and/or

neglec te t i

and/or

re fused

t o

pay

m e the b a l a n c e of

$2,500

t o w h l c h

I

am

entitled.

.

. , .5/

.

. .6/

. .

- 6 -

1 6 .

A

n o t l c c

o

f

a p p c z l

h i t s

beer:

lodged

by

myself

and

A??t.nl Books have r.ow

b e e n

s e t t l e d .

I

verily

b c l i s v e

t h a t

t h l s m a t t e r

wlll

be

heard

cn t h e

1st Oc tobe r ,

1 9 7 9 ,

a g a l n s t

t h e orc?er

of h i s Honour Nr. Justice >.~1-,5.

1 7 .

I ver i ly

bc l ie . ;c

t -ha t

I

h3vc

a

p a r t l a l

s e t -o f f and

c o u n t c r c l a 1 r n z y n x s t

t!Is

s a l d C r n c s t

Hardinr; P.lcmonn. "

By

a n

a p p l i c a t l o , )

d a t e d

2 6

September

1 9 7 9

t h e

d e b t o r

s o u g h t

t h e

f o l l w d i n g o r d e r s :

B o t h m a t t e r s

weze

r c - l l s t c d

on

8

r:3vemler

w!len

Mr

Beaumont

o f c o u n s e l a p p c a r c d f o r

t h e

p e t i t i o n x g c r e d i t o r

and b l r Walker,

s o l l c i t o r , nnnoLnccd

t h a t he had

been

a c t l n 5

f o r

t h e

d e b t o s ,

who v a s p r ? s e n t .

>!r

:.:alker

s t z t c r l

t h z t

t h E

A u s t r a l i a n L e g a l A i d O f f i c f

hac1

n o t x i l e d

him

t h a t l e g a l a i d

would no l o n g e r be made

available,

tb.at

h e h::d

ad \ r l sed

the

d e b t o r

t h a t he

had

ceased

t o a c t to r

h e r and t h a t s h e

agreed

t h a t c h i s was

so.

.

.

. 7 /

- 7 -

. .

.8/

- 8 -

on

t h e f a c t t h a t

it d i d n o t contain

a n y a l l e q a t l o n

of

a

ca .>n te r - c l a i rn ,

s e t -o f f

or c r o s s dcmanci equal t o cr excecdln>J

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

t h e

f i n a l o r ? e r , b u t o n l y

r e E e r r e d

t o a

c l a l - .

f o r

J.

le , ;ser

amount .

:,:lss

I l a r r i s co.1cec!ed

t h l s

f a c t and Chc Court,

apply,.>g

t h e

t e s t

l a l d

do:ln

C b e r t l v

The Unlon

T r*~s te?

Coymny of ~ u s t l - a l ~ ~

L t d .

(1360) 10: C . L . ~

-__

----

346 a t p .

350,

uphc'd

Mr

B c a u n o n t ' s

s . h n i s s l o n .

Th2

C o u r t

t h e n h o a r d

t h e E c b t c r ' s a p 2 l I c a t l o c f o r

e n l a r g e c e n t o f

t i m e f o r c o m p l l a n c e w i t h

t h e

b a n k r l q t c y n o t l c e

slid dlsn135?3. ~t 01

t h e s round t n a t lt W ~ S

cot m 2 2 unt ; l

a f t s r t ' r e c x n i r a t l o z o f t h a t

t m c ,

ar.d

accordi::G:y

c o u l 2 n o t

a f f e c t t h e c m r x s s i o n

of

t h e a c t

of

bnnkrup tcy

a l l eged

( s e e

R e Grazs;

e x F?r t e C a s t l i n g

(1931) 3

A.B.C.

13i).

I n

a n a f f i d a v i t

s w o r n o n

t h e

same

d a y ,

t h e d e b t a r

depose?.

a s f o l l o w s :

...

g/

- 9 -

l

2 .

The

ev ldence

I s!lall p-ocluce 50 the

C o x t i n s u p p o r t

of

c o u n t e r

c l z l x ~ ,

s e t o f f o r cross dem.n.l w l l l L e as

f o l l o w s :

( a )

$2,50C

b a l a n c e cf wayes as pcr

comprcr::s~

r c a c k d on 1st

Decemb2r

1 9 7 7 .

( b )

$ 2 5 0 costs orZc;.,L-c!

by h s k e r

Uar':er 22/11,'7i;

(c)

5280 c o s t s

o r d e r e d

by Master

Bre t t

17/19/78

I t

t r x ' s p l r e d

t h a t

t he ckS to r hzd L iken

; ~ r c i ~ . ~ ~ S i : ~ ; s

I n

t h e S u p r a n e C o u r t s e e k i z g

t o

h a w t n z c o n s s n t

orcier

of

1.

:

I

J u s t i c f H a r r l s r e c t i f l e d

t c make

it

clcar

t h l t t h c r c i 1 3 f

g r a n t e d

t o h e r

i n

t h a t o r d e r

was

15 ? d k t l o : .

t o h f r

clc7-z

a g a i n s t

t k e p e t l t l o n l n g

c r e S i t o r

f o r

$ 2 , 5 0 0 .

lbir J~sticc

I:l;.g

r e f u s c d t o make the order r'riich shc. sou9l-t and hc? appca'-

t o

t h e

Full

Cour t

oC

t h e

Supreroe

Court

a g a L n s t t h a t r e f u s a l

ilas

d i s m s s e d w i t h

cos ts ,

a f t e r

a

h c a r l n g e x t e n d l n g o v e r

t h r e e

days

i n w h i z h

b o t h

p a r t l c s

v e r e

l e g a l l y

r e p r e s e n t e d .

?!;e

c3StS

.

- l d -

so

a w e r d e d a g a l n s t

t h e d e b t o r

hac?

n o t b e e a t a x e d t o t h a t d a t e .

The d e b t o r c a l l e d

Mr

Locwenstein as a witness

an?.

q u e s t i o n e d

! l i n about

the compccrnlsc made

!x:xee:1

!Il:em

on

1 December

1 5 7 7 .

. . .11/

- 11 -

I n t h e

l l g h t o f

t h e h l s t o r y

of

t h e c a s e ,

a n d

t h e

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

t e e n o u t l l z c d a b o v e ,

t h e

a p p l i c a t l o n

was

r e f u s e d .

I n h i s a f f i d a v i t

cE

8 >:ay

1'379 he

st+tcJ t h a t c.ft:T

r e t u r n i n g t o t h e

Su;lreme

C c s r t ,

h z v l n y

n e g o t i a t c d

a

sctL.l e x n t

of

the

a;rpeal

by

the

d e b t o r ,

I n whlci:

she

was

c l e s c r l l x d a s " t h e

f i r s t named

A p p l i c a n t " :

. . .12/

- 1 2 -

Details
AGLC
Re Harris, Winifred Anne Madelaine Ex parte Niemann, Ernest Harding [1980] FCA 7
Case
[1980] FCA 7
Decision Date

CaseChat Overview and Summary

The case of Re Harris, Winifred Anne Madelaine Ex parte Niemann, Ernest Harding involved a petition for bankruptcy filed by a creditor, Ernest Harding Niemann. The debtor, Winifred Anne Madelaine Harris, contested the petition by claiming that she had a partial set-off or counterclaim against Niemann that was equal to or greater than the amount payable under the final order. The matter was heard in the Federal Court of Australia, General Division, Bankruptcy District of the State of Victoria. The legal issue before the court was whether the debtor's claim of a set-off or counterclaim was an "affidavit of a counter-claim, set-off or cross demand" as contemplated by sections 40(1)(g) and 41(7) of the Bankruptcy Act 1966. The court held that the debtor's claim did not qualify as such an affidavit, as it did not allege a counterclaim, set-off, or cross demand equal to or exceeding the amount payable under the final order. The court dismissed the debtor's application for an enlargement of time for compliance with the bankruptcy notice, as it was made after the time for compliance had already lapsed, and therefore could not affect the commission of the act of bankruptcy alleged. The final orders of the court were that the debtor's application be dismissed, and costs be awarded to Niemann.

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.