Motor Terms Co Pty Ltd v Liberty Insurance Ltd [1967] HCA 9

Motor Terms Co Pty Ltd v Liberty Insurance Ltd [1967] HCA 9

The letter dated 23 May 1963 was a sufficient acknowledgment in writing to prevent the respondent's debt from being statute-barred under the Statute of Limitations at all relevant times, entitling the respondent to petition as a creditor. Even if limitation ran out after the petition but before the winding up order, the respondent was still a creditor for the purposes of s.221(1)(b) of the Companies Act 1961 (NSW).

Jurisdiction
Australia
Procedural Posture
Appeal / High Court Appellate Judgment
Outcome
Appeal dismissed
Legal Topics
['winding Up' 'statute of Limitations' 'acknowledgment of Debt' "creditor's Petition" 'companies Act 1961 (nsw) S.221' 'proof of Debt in Liquidation']
['corporations Law'] ['winding Up' 'statute of Limitations' 'acknowledgment of Debt' "creditor's Petition" 'companies Act 1961 (nsw) S.221' 'proof of Debt in Liquidation']

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Procedural Posture

Appeal / High Court Appellate Judgment

Legal Issues

  1. 1 ['Whether a creditor whose debt becomes statute-barred after the petition but before the winding up order can petition for winding up under s. 221(1)(b) of the Companies Act 1961 (NSW)' "Whether a letter dated 23 May 1963 constituted a sufficient acknowledgment to defeat the Statute of Limitations and allow the respondent's debt to be claimed"]

Ratio Decidendi

The letter dated 23 May 1963 was a sufficient acknowledgment in writing to prevent the respondent's debt from being statute-barred under the Statute of Limitations at all relevant times, entitling the respondent to petition as a creditor. Even if limitation ran out after the petition but before the winding up order, the respondent was still a creditor for the purposes of s.221(1)(b) of the Companies Act 1961 (NSW).

Court Disposition

Appeal dismissed

Orders

  • ['Appeal dismissed with costs.']