Re Lees, Edwin David Ex Parte Young, Grant Charles [1984] FCA 261

Re Lees, Edwin David Ex Parte Young, Grant Charles [1984] FCA 261

The debtor provided misleading information regarding the transfer of property at Bungendore to Manettia Pty Ltd and omitted material particulars from his statement of affairs, rendering the deed of arrangement void under s 222(4) Bankruptcy Act 1966. Given the debtor’s insolvency and the interests of creditors, a sequestration order was justified under s 222(7), and as consent to act was filed by a registered trustee, Mr. Yeomans was appointed trustee of the estate.

Parties
Debtor: Edwin David Lees; Creditor/applicant: Grant Charles Young; Trustee: Robert Yeomans
Jurisdiction
Australia
Judgment Date
31 August 1984
Procedural Posture
Bankruptcy Application / Judgment After Application for Orders Under Bankruptcy Act 1966
Outcome
Application granted: deed of arrangement declared void, sequestration order made, trustee appointed.
Legal Topics
Deed of Arrangement, Sequestration Order, Voidable Transaction, Trusts, Misleading Disclosure in Insolvency
Insolvency Bankruptcy Deed of Arrangement Sequestration Order Voidable Transaction Trusts Misleading Disclosure in Insolvency

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Parties

Edwin David Lees

Debtor

Grant Charles Young

Creditor/applicant

Robert Yeomans

Trustee

Procedural Posture

Bankruptcy Application / Judgment After Application for Orders Under Bankruptcy Act 1966

Legal Issues

  1. 1 Whether the deed of arrangement executed by the debtor should be declared void under s 222(4) of the Bankruptcy Act 1966
  2. 2 Whether a summary sequestration order should be made against the estate of the debtor under s 222(7) of the Bankruptcy Act 1966
  3. 3 Whether misleading information was given and material particulars omitted by the debtor regarding his affairs at creditors’ meetings

Ratio Decidendi

The debtor provided misleading information regarding the transfer of property at Bungendore to Manettia Pty Ltd and omitted material particulars from his statement of affairs, rendering the deed of arrangement void under s 222(4) Bankruptcy Act 1966. Given the debtor’s insolvency and the interests of creditors, a sequestration order was justified under s 222(7), and as consent to act was filed by a registered trustee, Mr. Yeomans was appointed trustee of the estate.

Court Disposition

Application granted: deed of arrangement declared void, sequestration order made, trustee appointed.

Orders

  • The deed of arrangement executed by the debtor on 6 April 1977 is declared void.
  • A sequestration order is made against the estate of the debtor.