Sumner v Campbell [1935] HCA 20

Sumner v Campbell [1935] HCA 20

Sec. 34(7)(c) of the Moratorium Act 1932 (N.S.W.) is to be interpreted as restoring to mortgagees their rights in company winding up situations, regardless of whether the winding up order was made before or after the 1932 Act commenced. The provision operates to remove prior statutory restrictions on proofs of debt by mortgagees in company liquidations, making such rights unimpaired in any winding up process, and is not limited by temporal qualification to future events alone.

Parties
Appellants / Applicants: Sumner and Others; Respondents: Campbell and Another
Jurisdiction
Australia
Procedural Posture
Appeal / On Appeal From the Full Court of the Supreme Court of New South Wales
Outcome
Appeal allowed
Legal Topics
Moratorium Legislation, Proof of Debt in Winding Up, Effect of Statutory Restrictions on Mortgagees, Interpretation of Retrospective Legislation
Bankruptcy and Insolvency Law Mortgage Law Statutory Interpretation Moratorium Legislation Proof of Debt in Winding Up Effect of Statutory Restrictions on Mortgagees Interpretation of Retrospective Legislation

Case Brief

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Parties

Sumner and Others

Appellants / Applicants

Campbell and Another

Respondents

Procedural Posture

Appeal / On Appeal From the Full Court of the Supreme Court of New South Wales

Legal Issues

  1. 1 Whether sec. 34(7)(c) of the Moratorium Act 1932 (N.S.W.) restores the rights of a mortgagee in relation to a winding up order made before the commencement of the Act.
  2. 2 Whether the provision is to be construed retrospectively or prospectively for proofs of debt in company winding up.

Ratio Decidendi

Sec. 34(7)(c) of the Moratorium Act 1932 (N.S.W.) is to be interpreted as restoring to mortgagees their rights in company winding up situations, regardless of whether the winding up order was made before or after the 1932 Act commenced. The provision operates to remove prior statutory restrictions on proofs of debt by mortgagees in company liquidations, making such rights unimpaired in any winding up process, and is not limited by temporal qualification to future events alone.

Court Disposition

Appeal allowed

Orders

  • Order of the Full Court discharged
  • Order of Street J. restored