Re Terry, B.M. & Anor v Ex parte Pyramid Building Society (In liq) [1995] FCA 327

Re Terry, B.M. & Anor v Ex parte Pyramid Building Society (In liq) [1995] FCA 327

The hearing of the bankruptcy petition should be adjourned because the debtors' appeal against the judgment founding the petition raised a genuine and arguable ground based on conflicting judicial reasoning about whether a contingent guarantee liability was a provable debt under the Bankruptcy Act 1966 composition provisions, and the additional circumstances alleged by the petitioning creditor did not justify refusing adjournment. The adjournment was limited because, having regard to s. 52(4) of the Bankruptcy Act 1966, further consideration of the petition should not be deferred beyond December 1995.

Jurisdiction
Australia
Judgment Date
24 May 1995
Procedural Posture
Bankruptcy Petition / Application for Adjournment of the Hearing of a Bankruptcy Petition
Outcome
Application for adjournment granted; hearing of the petition adjourned.
Legal Topics
['adjournment of Bankruptcy Petition' 'bankruptcy Notice' 'judgment Debt Founded on Guarantee' 'appeal Against Judgment' 'composition Under Part X of the Bankruptcy Act 1966' 'provable Debt']
['bankruptcy' 'insolvency' 'civil Procedure'] ['adjournment of Bankruptcy Petition' 'bankruptcy Notice' 'judgment Debt Founded on Guarantee' 'appeal Against Judgment' 'composition Under Part X of the Bankruptcy Act 1966' 'provable Debt']

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Procedural Posture

Bankruptcy Petition / Application for Adjournment of the Hearing of a Bankruptcy Petition

Legal Issues

  1. 1 ["Whether the hearing of the bankruptcy petition should be adjourned pending determination of the debtors' appeal against the judgment founding the petition." 'Whether the appeal was based on genuine and arguable grounds, including whether a contingent guarantee liability was a provable debt under the Bankruptcy Act 1966 provisions concerning a Part X composition.' 'Whether alleged asset arrangements, insolvency, and the earlier refusal of a stay should weigh against adjournment.']

Ratio Decidendi

The hearing of the bankruptcy petition should be adjourned because the debtors' appeal against the judgment founding the petition raised a genuine and arguable ground based on conflicting judicial reasoning about whether a contingent guarantee liability was a provable debt under the Bankruptcy Act 1966 composition provisions, and the additional circumstances alleged by the petitioning creditor did not justify refusing adjournment. The adjournment was limited because, having regard to s. 52(4) of the Bankruptcy Act 1966, further consideration of the petition should not be deferred beyond December 1995.

Court Disposition

Application for adjournment granted; hearing of the petition adjourned.

Orders

  • ['The hearing of the petition be adjourned to a date not later than 6 December 1995 to be fixed on the application of any party on reasonable notice to the other parties.' "Each party's costs of the hearing of the petition to and including this day be reserved."]