Re Corke, Jane Vida Ex Parte Official Trustee in Bankruptcy [1996] FCA 156

Re Corke, Jane Vida Ex Parte Official Trustee in Bankruptcy [1996] FCA 156

Given Sharp was the only creditor to provide indemnities for costs, assumed substantial risk, and its indemnity was crucial to asset preservation, it is appropriate to give Sharp 100% priority for payment of its proved debt.

Jurisdiction
Australia
Judgment Date
15 March 1996
Procedural Posture
Bankruptcy Application / Distribution of Proceeds/priority Determination
Outcome
Application granted; Sharp given 100% priority for its proved debt, remainder distributed pro-rata among other creditors.
Legal Topics
['priority Payments' 'indemnity by Creditor' 'distribution of Proceeds']
['bankruptcy'] ['priority Payments' 'indemnity by Creditor' 'distribution of Proceeds']

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Procedural Posture

Bankruptcy Application / Distribution of Proceeds/priority Determination

Legal Issues

  1. 1 ['Whether indemnifying creditor (Sharp) is entitled to priority in distribution under s.109(10) of Bankruptcy Act 1966 (Cth)']

Ratio Decidendi

Given Sharp was the only creditor to provide indemnities for costs, assumed substantial risk, and its indemnity was crucial to asset preservation, it is appropriate to give Sharp 100% priority for payment of its proved debt.

Court Disposition

Application granted; Sharp given 100% priority for its proved debt, remainder distributed pro-rata among other creditors.

Orders

  • ["Balance held by Official Receiver after payment of costs, remuneration, and fees to be applied first to a dividend of 100 cents in the dollar for Sharp's proved debt ($18,533.50 or as funds permit)." 'Remainder, if any, to be distributed pro-rata among other creditors.']