Mulley; ex parte Australian Guarantee Corporation Limited [1979] FCA 180

Mulley; ex parte Australian Guarantee Corporation Limited [1979] FCA 180

The debtor's conversation with the petitioning creditor's manager on 19 October 1978, although casual and occurring in a tavern bar over drinks, was intended by both men to concern the debtor's financial position and ability to pay debts. The debtor's statements established that he intended to suspend payment of his debts as they became due and that this intention was communicated to the petitioning creditor, satisfying the alleged act of bankruptcy and the other matters required by s. 52 (1) of the Act.

Jurisdiction
Australia
Judgment Date
13 November 1979
Procedural Posture
Creditor's Petition for Sequestration / Hearing of Petition
Outcome
Sequestration order made against the estate of the debtor.
Legal Topics
["creditor's Petition" 'act of Bankruptcy' 'notice of Suspension of Payment of Debts' 'sequestration Order']
['bankruptcy'] ["creditor's Petition" 'act of Bankruptcy' 'notice of Suspension of Payment of Debts' 'sequestration Order']

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Procedural Posture

Creditor's Petition for Sequestration / Hearing of Petition

Legal Issues

  1. 1 ['Whether the debtor intended on 19 October 1978 to suspend payment of his debts as they became due.' 'Whether that intention was communicated to the petitioning creditor so as to constitute an act of bankruptcy under s. 40 (1) (h) of the Bankruptcy Act 1966.']

Ratio Decidendi

The debtor's conversation with the petitioning creditor's manager on 19 October 1978, although casual and occurring in a tavern bar over drinks, was intended by both men to concern the debtor's financial position and ability to pay debts. The debtor's statements established that he intended to suspend payment of his debts as they became due and that this intention was communicated to the petitioning creditor, satisfying the alleged act of bankruptcy and the other matters required by s. 52 (1) of the Act.

Court Disposition

Sequestration order made against the estate of the debtor.

Orders

  • ['A sequestration order be made against the estate of the debtor.' 'Costs, including reserved costs and costs of all proceedings in this matter before any judge of the court, be taxed and paid according to the Act.' 'A draft of this order be delivered to the registrar within seven (7) days in accordance with rule...