Re Brown, W. & Anor v. Ex parte Humes Ltd [1987] FCA 369

Re Brown, W. & Anor v. Ex parte Humes Ltd [1987] FCA 369

The composition was terminated because the means of funding claims (Queensland Pavements Pty Ltd) had ceased to exist, making the composition impractical, and there had been material non-disclosure in the statement of affairs. The court was satisfied that terminating the composition and making sequestration orders would be in the interests of creditors.

Parties
Applicant: Humes Limited; Debtor/respondent: Warren Thomas Brown; Debtor/respondent: Roslyn Una Brown
Jurisdiction
Australia
Judgment Date
17 July 1987
Procedural Posture
Bankruptcy / Application for Termination of Composition and Sequestration Order
Outcome
Application granted
Legal Topics
Termination of Composition, Sequestration Order, Joint Debtors, Non Disclosure of Assets, Resolution Requirements
Bankruptcy Termination of Composition Sequestration Order Joint Debtors Non Disclosure of Assets Resolution Requirements

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Parties

Humes Limited

Applicant

Warren Thomas Brown

Debtor/respondent

Roslyn Una Brown

Debtor/respondent

Procedural Posture

Bankruptcy / Application for Termination of Composition and Sequestration Order

Legal Issues

  1. 1 Whether a single resolution suffices for joint debtors
  2. 2 Whether non-disclosure of assets warrants declaring composition void
  3. 3 Whether supervening impracticality or injustice is a ground for termination under s.242

Ratio Decidendi

The composition was terminated because the means of funding claims (Queensland Pavements Pty Ltd) had ceased to exist, making the composition impractical, and there had been material non-disclosure in the statement of affairs. The court was satisfied that terminating the composition and making sequestration orders would be in the interests of creditors.

Court Disposition

Application granted

Orders

  • The composition entered into on 24 October 1985 be terminated.
  • A sequestration order be made against the estates of each debtor.