Crew, Re D.S. Ex Parte Australian Guarantee Corporation Ltd [1986] FCA 523

Crew, Re D.S. Ex Parte Australian Guarantee Corporation Ltd [1986] FCA 523

The Court refused to exercise its discretion to perfect the creditors' resolution, finding that the proposed deed of assignment was not for the benefit of creditors, given the nominal assets compared to substantial debts, and would effectively serve only to benefit the debtor against the interests of dissenting creditors.

Parties
Applicant: Australian Guarantee Corporation Limited; Debtor: David Stewart Crew; Creditor: Ampol Petroleum (Qld.) Pty. Ltd.
Jurisdiction
Australia
Judgment Date
30 October 1986
Procedural Posture
Bankruptcy Application / Application to Fill Vacancy in Appointment of Trustee Under a Deed of Assignment
Outcome
application dismissed with fixed costs
Legal Topics
Deed of Assignment, Nomination of Trustee, Exercise of Discretion in Bankruptcy Proceedings
Bankruptcy Deed of Assignment Nomination of Trustee Exercise of Discretion in Bankruptcy Proceedings

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Parties

Australian Guarantee Corporation Limited

Applicant

David Stewart Crew

Debtor

Ampol Petroleum (Qld.) Pty. Ltd.

Creditor

Procedural Posture

Bankruptcy Application / Application to Fill Vacancy in Appointment of Trustee Under a Deed of Assignment

Legal Issues

  1. 1 Whether the court should appoint a trustee for a deed of assignment when no trustee was nominated at the creditors' meeting
  2. 2 Whether the circumstances justify the exercise of the court's discretion to fill the vacancy

Ratio Decidendi

The Court refused to exercise its discretion to perfect the creditors' resolution, finding that the proposed deed of assignment was not for the benefit of creditors, given the nominal assets compared to substantial debts, and would effectively serve only to benefit the debtor against the interests of dissenting creditors.

Court Disposition

application dismissed with fixed costs

Orders

  • The application be dismissed with costs fixed at $200.