Re Lennon, Anthony Graham Ex Parte Deputy Commissioner of Taxation [1995] FCA 1097

Re Lennon, Anthony Graham Ex Parte Deputy Commissioner of Taxation [1995] FCA 1097

Although execution of an authority under s 188 did not confer any entitlement to an adjournment, the Court was persuaded that a short adjournment was justified by the whole of the material, including the absence of demonstrated special prejudice to the Deputy Commissioner, the need for genuine creditors to consider the proposal, and the serious prejudice that immediate bankruptcy would cause to Mr Lennon as a sole solicitor with staff, health, family and business concerns. Liberty to restore the petition on short notice was appropriate to ensure diligence in convening the creditors' meeting.

Jurisdiction
Australia
Judgment Date
15 December 1995
Procedural Posture
Bankruptcy Creditor's Petition / Application by Debtor for Adjournment of Creditor's Petition
Outcome
Adjournment granted.
Legal Topics
["adjournment of Creditor's Petition" 'part X of the Bankruptcy Act 1966' 'authority Under S 188 of the Bankruptcy Act 1966' 'sequestration Order' 'group Tax Obligations']
['bankruptcy' 'insolvency' 'taxation'] ["adjournment of Creditor's Petition" 'part X of the Bankruptcy Act 1966' 'authority Under S 188 of the Bankruptcy Act 1966' 'sequestration Order' 'group Tax Obligations']

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Procedural Posture

Bankruptcy Creditor's Petition / Application by Debtor for Adjournment of Creditor's Petition

Legal Issues

  1. 1 ["Whether the hearing of the Deputy Commissioner of Taxation's creditor's petition should be adjourned to allow Anthony Graham Lennon to convene a meeting of creditors under Part X of the Bankruptcy Act 1966." "Whether the execution or purported execution of an authority under s 188 of the Bankruptcy Act 1966, together with Mr Lennon's personal, professional and financial circumstances, justified the adjournment sought."]

Ratio Decidendi

Although execution of an authority under s 188 did not confer any entitlement to an adjournment, the Court was persuaded that a short adjournment was justified by the whole of the material, including the absence of demonstrated special prejudice to the Deputy Commissioner, the need for genuine creditors to consider the proposal, and the serious prejudice that immediate bankruptcy would cause to Mr Lennon as a sole solicitor with staff, health, family and business concerns. Liberty to restore the petition on short notice was appropriate to ensure diligence in convening the creditors' meeting.

Court Disposition

Adjournment granted.

Orders

  • ['The petition of the Deputy Commissioner of Taxation is adjourned until 9.30 am on 5 February 1996.' 'The costs of the Deputy Commissioner of Taxation of today be his costs in his petition.' "Liberty is granted to the Deputy Commissioner of Taxation to list the petition for hearing on five working days' notice."]