Perovich v Whitton (No 2) [2016] FCAFC 152

Perovich v Whitton (No 2) [2016] FCAFC 152

Section 222D of the Bankruptcy Act 1966 (Cth) operates according to its terms and allows a composition to be terminated automatically upon the occurrence of any event or circumstance specified in the composition, including default by the debtor; the terms of the relevant compositions expressly provided for termination in the event of default of contributions, so the compositions automatically terminated upon default without need for election by trustee or creditors.

Jurisdiction
Australia
Judgment Date
09 November 2016
Procedural Posture
Appeal / Judgment After Hearing of Appeal
Outcome
Appeal dismissed
Legal Topics
['trustee Directions' 'termination of Compositions' 'automatic Termination on Default' 'construction of Bankruptcy Act S 222 D']
['bankruptcy and Insolvency'] ['trustee Directions' 'termination of Compositions' 'automatic Termination on Default' 'construction of Bankruptcy Act S 222 D']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Appeal / Judgment After Hearing of Appeal

Legal Issues

  1. 1 ["Whether an event of default can be an 'event' or 'circumstance' for termination under s 222D of the Bankruptcy Act 1966 (Cth)" 'Whether the terms of the compositions provided for automatic termination upon default']

Ratio Decidendi

Section 222D of the Bankruptcy Act 1966 (Cth) operates according to its terms and allows a composition to be terminated automatically upon the occurrence of any event or circumstance specified in the composition, including default by the debtor; the terms of the relevant compositions expressly provided for termination in the event of default of contributions, so the compositions automatically terminated upon default without need for election by trustee or creditors.

Court Disposition

Appeal dismissed

Orders

  • ['The appeal be dismissed.' 'The appellants are to pay the costs of the first and second respondents.' 'The first respondent is at liberty to resort to the bankrupt estates of the appellants in respect of the difference between his costs reasonably incurred and the costs paid by the appellants.']