Bendeich v Andresen [2000] FCA 61

Bendeich v Andresen [2000] FCA 61

The authority under s 188 was not effectively executed as required by s 188(2), so the deed of arrangement was not effective. Consequently, the court could not terminate the deed or make a sequestration order. However, Mrs Andresen committed an act of bankruptcy by signing the authority.

Jurisdiction
Australia
Judgment Date
07 February 2000
Procedural Posture
Bankruptcy Application / Application to Terminate Deed of Arrangement and for Sequestration Order
Outcome
Trustee's application dismissed
Legal Topics
['deed of Arrangement' 'section 188 Authority' 'act of Bankruptcy' 'compliance With Bankruptcy Act Procedures']
['bankruptcy'] ['deed of Arrangement' 'section 188 Authority' 'act of Bankruptcy' 'compliance With Bankruptcy Act Procedures']

Case Brief

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Procedural Posture

Bankruptcy Application / Application to Terminate Deed of Arrangement and for Sequestration Order

Legal Issues

  1. 1 ['Whether the deed of arrangement was effective under Part X of the Bankruptcy Act 1966 (Cth)' 'Whether the authority signed under s 188 was properly executed and effective' 'Whether a valid act of bankruptcy was committed' 'Whether the deed can be terminated and sequestration order made']

Ratio Decidendi

The authority under s 188 was not effectively executed as required by s 188(2), so the deed of arrangement was not effective. Consequently, the court could not terminate the deed or make a sequestration order. However, Mrs Andresen committed an act of bankruptcy by signing the authority.

Court Disposition

Trustee's application dismissed

Orders

  • ["The trustee's application is dismissed." 'It is declared that the authority signed by the debtor on 27 November 1997 was not effective for the purposes of Part X of the Bankruptcy Act 1966 (Cth).']