Re Johnson F.E. Ex parte Westpac Banking Corporation [1995] FCA 771

Re Johnson F.E. Ex parte Westpac Banking Corporation [1995] FCA 771

Because the Westpac Banking Corporation petitions were the earliest in time, the act of bankruptcy alleged in those petitions was made out, and there was no material showing any advantage to the debtors or creditors in proceeding on the debtors' petitions, sequestration orders should be made on the Westpac petitions; the Equus petitions were dismissed, but Equus had not acted unreasonably and its relevant costs should be costs in the administration of the bankrupt estates.

Jurisdiction
Australia
Judgment Date
20 September 1995
Procedural Posture
Bankruptcy Petitions / Determination of Competing Creditors' Petitions and Referred Debtors' Petitions
Outcome
The estates of Francis Edward Johnson and Anthony James Johnson were sequestrated on the Westpac Banking Corporation petitions; the Registrar was directed not to accept the debtors' petitions; the Equus petitions were dismissed with specified costs in the administration of the estates.
Legal Topics
['sequestration Orders' "creditors' Petitions" "debtors' Petitions" 'acts of Bankruptcy' 'relation Back' 'costs in Administration of Bankrupt Estates']
['bankruptcy'] ['sequestration Orders' "creditors' Petitions" "debtors' Petitions" 'acts of Bankruptcy' 'relation Back' 'costs in Administration of Bankrupt Estates']

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Procedural Posture

Bankruptcy Petitions / Determination of Competing Creditors' Petitions and Referred Debtors' Petitions

Legal Issues

  1. 1 ["Whether sequestration orders should be made on the debtors' petitions or on creditors' petitions." 'Whether the act of bankruptcy alleged in the Westpac Banking Corporation petitions was made out and was the earliest available act of bankruptcy for relation back purposes.' 'Whether the Equus Financial Services Limited petitions should be dismissed but their costs treated as costs in the administration of the bankrupt estates.']

Ratio Decidendi

Because the Westpac Banking Corporation petitions were the earliest in time, the act of bankruptcy alleged in those petitions was made out, and there was no material showing any advantage to the debtors or creditors in proceeding on the debtors' petitions, sequestration orders should be made on the Westpac petitions; the Equus petitions were dismissed, but Equus had not acted unreasonably and its relevant costs should be costs in the administration of the bankrupt estates.

Court Disposition

The estates of Francis Edward Johnson and Anthony James Johnson were sequestrated on the Westpac Banking Corporation petitions; the Registrar was directed not to accept the debtors' petitions; the Equus petitions were dismissed with specified costs in the administration of the estates.

Orders

  • ['The estates of Francis Edward Johnson and Anthony James Johnson be sequestrated.' 'The costs of Westpac Banking Corporation of and incidental to the petitions, including reserved costs, if any, be costs in the administration of the estates of the bankrupts.' 'The Registrar not accept the petitions presented by...