JUDGMENT No. mg./ .Q!_;
IN THE FEDE- COURT OF AUSTRALIA ) GENERAL DIVISION ) BANKRUPTCY DISTRICT OF THE
STATE OF OUEENSLAND
No. QP 2652 of 1991
RE: WILLIAM IAN AND MARGARET SUSAN WESTERM-AN EX PARTE: BANK OF NEW ZEALAND No. QP 2706 of 1991
RE : WILLIAM IAN AND MARGARET SUSAN WESTERMAN EX PARTE: WILLIAM IAN AND MARGARET SUSAN WESTERMAN MINUTES OF ORDER
JUDGE MAKING ORDER: PINCUS J. DATE OF ORDER: 27 NOVEMBER 1991 WHERE MADE: BRISBANE THE COURT DIRECTS THAT:
1. The debtors' petition be accepted.
2. Costs of and incidental to the creditor's petition incurred to date be given the priority which the petitioning creditor's costs are accorded under
NOTE: Settlement and entry of orders is dealt with in Rule
124 of the Bankruptcy Rules.
s.l09(l)(a) of the Bankru~tcv Act 1966.
IN THE FEDE R h COURT OF AUSTRALA )
GENERAL DIVIS_I,m 1 BANKRUPTCY DISTRICT OF
STATE OF OUEENSLAND
No. QP 2652 of 1991
RE: WILLIAM IAN AND MARGARET SUSAN WESTERMAN EX PARTE: BANK OF NEW ZEALAND
No. QP 2706 of 1991
RE : WILLIAM IAN-AND MARGARET SUSAN WESTERMAN EX PARTE: - WILLIAM IAN AND MARGARET SUSAN WESTERMAN
CORAM! PINCUS J.
PLACE : BRISBANE
U: 27 NOVEMBER 1991
-- EX TEMPORE REASONS FOR JUDGMENT
In this matter, a debtors' petition was presented on
28 October 1991 and was not accepted because of the provision
of s.57(3A) of the bankrupt^^ Act 1966 ("the Act") which reads
as follows:
presented under this section, a creditor's "Where, at the time when a debtor's petition is petitton is pending against any of the debtors (whether alone or jointly with another person), or against a partnershjp of which any of the debtors is a me~nher, the Registrar must refer the debtor's peLil.jon to the Court for a directlon to accept or reject it".
The Registrar acted under that provision because there had already been presented a creditor's petition on 21 October 1991. The course which was then taken was that the
hearing of the creditor's petition was adjourned to today as well as the referral of the question whether the debtors' petition should be accepted or rejected. The Court has a discretion under this provision. Miss Lake has appeared for the petitioning creditor and says candidly that it makes little difference to the petitioning creditor which course the Court follows.
It seems to me, having spoken to Mr Westerman, who has explained the reasons for the debtors' present trouble, that the debtorsr petition should simply be accepted. I therefore will direct that the debtors' petition be accepted and the costs of and incidental to the creditor's petition incurred to date be given the priority which a petitioning creditor's costs are accorded under s.l09(l)(a) of the Act.
I certify that this and the
preceding page are a true copy of the reasons for judgment herein of his Honour Mr Justice Pincus
Associate
Date 2-;F h l w e t ~ b e ~ ln\qr
- AGLC
- Re William Ian Westerman [1991] FCA 885
- Case
- [1991] FCA 885
- Decision Date
CaseChat Overview and Summary
The central legal issue before the Court was whether the debtors' petition should be accepted or rejected, particularly in light of the creditor's petition already being processed. The Court had discretion under section 57(3A) to either accept or reject the debtors' petition. The creditor's counsel, Miss Lake, indicated that the outcome would have little effect on the creditor's petition. After conversing with Mr Westerman and understanding the circumstances leading to the debtors' financial difficulties, Pincus J decided to accept the debtors' petition.
Pincus J reasoned that the acceptance of the debtors' petition was the appropriate course given the circumstances. The Court determined that the creditors' costs incurred to date should be prioritised in accordance with section 109(1)(a) of the Bankruptcy Act 1966. This decision balanced the interests of the debtors and the creditor, ensuring that the creditors' costs were not unduly prejudiced. Consequently, the Court directed that the debtors' petition be accepted and that the costs of and incidental to the creditor's petition be given priority.
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.