Re Leask, R.M. & Anor v. Ex parte Melsom, P.M. & Anor [1986] FCA 182

Re Leask, R.M. & Anor v. Ex parte Melsom, P.M. & Anor [1986] FCA 182

The court held that a deed of arrangement could include after-acquired property where agreed by the parties, as there is no provision in the Bankruptcy Act 1966 prohibiting inclusion of after-acquired property in a deed of arrangement. Additionally, s.110 of the Bankruptcy Act 1966 must be applied to funds from joint and separate estates, so that joint estate monies are first applied to joint debts and separate estate monies to separate debts, with surplus to be distributed according to s.110(2).

Parties
Debtor: Ronald Muirson Leask; Debtor: Bozidar Trumbich; Trustee/applicant: Peter Michael Melsom; Trustee/applicant: Stanley Frederic Robson
Jurisdiction
Australia
Judgment Date
13 May 1986
Procedural Posture
Application for Directions by Trustees (bankruptcy) / Determination of Questions Stated for the Court; Reasons for Judgment and Orders
Outcome
Answers to stated questions provided (directions given); orders for distribution according to Bankruptcy Act s.110.
Legal Topics
Deed of Arrangement, After Acquired Property, Application of Joint and Separate Estates, Interpretation of Bankruptcy Act Provisions, Distribution of Assets to Creditors
Bankruptcy Deed of Arrangement After Acquired Property Application of Joint and Separate Estates Interpretation of Bankruptcy Act Provisions Distribution of Assets to Creditors

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Parties

Ronald Muirson Leask

Debtor

Bozidar Trumbich

Debtor

Peter Michael Melsom

Trustee/applicant

Stanley Frederic Robson

Trustee/applicant

Procedural Posture

Application for Directions by Trustees (bankruptcy) / Determination of Questions Stated for the Court; Reasons for Judgment and Orders

Legal Issues

  1. 1 Whether after-acquired property can be included in the assets administered under a deed of arrangement under Part X of the Bankruptcy Act 1966
  2. 2 Whether s.110 of the Bankruptcy Act 1966 governs the distribution of monies from joint and separate estates under a deed of arrangement

Ratio Decidendi

The court held that a deed of arrangement could include after-acquired property where agreed by the parties, as there is no provision in the Bankruptcy Act 1966 prohibiting inclusion of after-acquired property in a deed of arrangement. Additionally, s.110 of the Bankruptcy Act 1966 must be applied to funds from joint and separate estates, so that joint estate monies are first applied to joint debts and separate estate monies to separate debts, with surplus to be distributed according to s.110(2).

Court Disposition

Answers to stated questions provided (directions given); orders for distribution according to Bankruptcy Act s.110.

Orders

  • The sum of $8,298.91 being the net proceeds of the sale of Security Telephone Lines forms part of the joint estate assets.
  • Monies from the joint estate must be applied first to joint debts; monies from the separate estate must be applied first to the relevant debtor's separate debts. Any surplus is to be applied in accordance with s.110(2) of the Bankruptcy Act 1966.