Re Velickovich, G. v. Ex parte Atomic Hire Centre Pty Ltd t/a Seven Hills Hire Centre [1987] FCA 40

Re Velickovich, G. v. Ex parte Atomic Hire Centre Pty Ltd t/a Seven Hills Hire Centre [1987] FCA 40

The deed did not extinguish the creditor's right to prosecute the petition for a sequestration order, and there were insufficient grounds to exercise discretion under s.52(2)(b) Bankruptcy Act 1966 to refuse making the order or to adjourn proceedings based on speculative arbitration or possible loan.

Parties
Debtor: George Velickovich; Creditor: Atomic Hire Centre Pty Limited t/as Seven Hills Hire Centre; Creditor: Canon Australia Pty Limited; Related Entity: Toplica Investments Pty Limited
Jurisdiction
Australia
Judgment Date
17 February 1987
Procedural Posture
Creditor's Bankruptcy Petition / Determination of Petition and Request for Sequestration Order
Outcome
Sequestration order made on the petition of Atomic Hire Centre Pty Limited; petition of Canon Australia Pty Limited dismissed.
Legal Topics
Failure to Comply With Bankruptcy Notice, Sequestration Orders, Effect of Deed of Arrangement, Arbitration and Loan Proposals
Bankruptcy Failure to Comply With Bankruptcy Notice Sequestration Orders Effect of Deed of Arrangement Arbitration and Loan Proposals

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Parties

George Velickovich

Debtor

Atomic Hire Centre Pty Limited t/as Seven Hills Hire Centre

Creditor

Canon Australia Pty Limited

Creditor

Toplica Investments Pty Limited

Related Entity

Procedural Posture

Creditor's Bankruptcy Petition / Determination of Petition and Request for Sequestration Order

Legal Issues

  1. 1 Whether execution of a deed for payment of judgment debt prevents further prosecution of creditor's petition
  2. 2 Whether sequestration order ought not to be made under s.52(2)(b) Bankruptcy Act 1966
  3. 3 Effect of pending arbitration and proposed loan on bankruptcy proceedings

Ratio Decidendi

The deed did not extinguish the creditor's right to prosecute the petition for a sequestration order, and there were insufficient grounds to exercise discretion under s.52(2)(b) Bankruptcy Act 1966 to refuse making the order or to adjourn proceedings based on speculative arbitration or possible loan.

Court Disposition

Sequestration order made on the petition of Atomic Hire Centre Pty Limited; petition of Canon Australia Pty Limited dismissed.

Orders

  • Sequestration order granted on Atomic Hire Centre Pty Limited's petition in respect of George Velickovich.
  • Canon Australia Pty Limited's petition dismissed.