Re Green, Ian McKeague & Anor v Green, Ian McKeague & Anor [1995] FCA 910

Re Green, Ian McKeague & Anor v Green, Ian McKeague & Anor [1995] FCA 910

Ashby did not establish grounds for relief under s 222. The JV agreement and accounts provided a sufficient basis for the Trustee to admit Barob as a creditor for the amount claimed, including the internal interest component. The failure to disclose Ashby's creditor's petition did not, on the facts, justify relief under s 222, particularly where Ashby's representative was present at the meeting and could have raised the petition, the application was brought late, the estate appeared to be satisfactorily administered under the Deed, and there was no evidence that declaring the Deed void would be in the interests of creditors.

Jurisdiction
Australia
Judgment Date
29 August 1995
Procedural Posture
Bankruptcy Application Under S 222 of the Bankruptcy Act 1966 for a Declaration That a Part X Deed of Arrangement Is Void / Application Heard and Determined at First Instance
Outcome
Application dismissed with costs.
Legal Topics
['arrangements With Creditors Without Sequestration' 'deed of Arrangement Under Part X of the Bankruptcy Act 1966' "admission of Proof of Debt and Voting at Creditors' Meeting" "disclosure to Creditors' Meeting" 'section 222 Application to Declare Deed Void']
['bankruptcy'] ['arrangements With Creditors Without Sequestration' 'deed of Arrangement Under Part X of the Bankruptcy Act 1966' "admission of Proof of Debt and Voting at Creditors' Meeting" "disclosure to Creditors' Meeting" 'section 222 Application to Declare Deed Void']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Bankruptcy Application Under S 222 of the Bankruptcy Act 1966 for a Declaration That a Part X Deed of Arrangement Is Void / Application Heard and Determined at First Instance

Legal Issues

  1. 1 ['Whether the Trustee wrongly admitted Barob Pty Limited as a creditor in the amount claimed and permitted it to vote in favour of the resolution requiring execution of the Deed of Arrangement.' "Whether the debtor gave false or misleading information or included incorrect particulars concerning Barob's debt in his Statement of Affairs." "Whether failure to disclose the existence of Ashby's creditor's petition and an act of bankruptcy to the meeting of creditors justified declaring the Deed of Arrangement void under s 222 of the Bankruptcy Act 1966." 'Whether it would be in the interests of creditors to declare the Deed of Arrangement void.']

Ratio Decidendi

Ashby did not establish grounds for relief under s 222. The JV agreement and accounts provided a sufficient basis for the Trustee to admit Barob as a creditor for the amount claimed, including the internal interest component. The failure to disclose Ashby's creditor's petition did not, on the facts, justify relief under s 222, particularly where Ashby's representative was present at the meeting and could have raised the petition, the application was brought late, the estate appeared to be satisfactorily administered under the Deed, and there was no evidence that declaring the Deed void would be in the interests of creditors.

Court Disposition

Application dismissed with costs.

Orders

  • ['The application be dismissed.' 'The applicant pay the costs of this application.']