Radin v Commonwealth Bank of Australia [1999] FCA 748

Radin v Commonwealth Bank of Australia [1999] FCA 748

The Bank did not make the representations as pleaded by Radin; no binding long-term 60/40 agreement arose. The Bank was entitled to estimate its security value for voting, and the chairman could not challenge this based on true or objective value. There is no statutory power to vary a Part X deed by resolution. Radin failed to comply with the Deed; it is terminated and his estate sequestrated; other relief sought by Radin is dismissed.

Parties
Applicant/respondent: Michael Radin; Respondent/applicant: Commonwealth Bank of Australia (ACN 123 123 124); Respondent: Peter David Rodgers; Applicant/respondent: Martin Russell Brown; Respondent: Lily Stefanovic; Respondent: Snezana Miki Milicevic; Respondent: Susan McTegg; Respondent: Dennis Ian Hill
Jurisdiction
Australia
Judgment Date
07 June 1999
Procedural Posture
Bankruptcy and Related Commercial Proceedings / Final Judgment With Orders and Directions for Further Orders Including Costs
Outcome
Deed of Arrangement terminated; estate sequestrated; Radin’s applications dismissed; costs awarded; Bank directed to bring in short minutes.
Legal Topics
Deed of Arrangement, Secured Creditors’ Votes, Termination of Deed, Sequestration Order, Estoppel, Misleading Conduct, Variation of Deed, Proof of Debt
Bankruptcy Commercial Law Deed of Arrangement Secured Creditors’ Votes Termination of Deed Sequestration Order Estoppel Misleading Conduct +2 more

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Parties

Michael Radin

Applicant/respondent

Commonwealth Bank of Australia (ACN 123 123 124)

Respondent/applicant

Peter David Rodgers

Respondent

Martin Russell Brown

Applicant/respondent

Lily Stefanovic

Respondent

Snezana Miki Milicevic

Respondent

Susan McTegg

Respondent

Dennis Ian Hill

Respondent

Procedural Posture

Bankruptcy and Related Commercial Proceedings / Final Judgment With Orders and Directions for Further Orders Including Costs

Legal Issues

  1. 1 Whether the Bank made representations as alleged by Radin
  2. 2 Whether the Bank could vote as unsecured creditor under the Deed of Arrangement
  3. 3 Whether Bank’s estimate of security value was proper for voting

Ratio Decidendi

The Bank did not make the representations as pleaded by Radin; no binding long-term 60/40 agreement arose. The Bank was entitled to estimate its security value for voting, and the chairman could not challenge this based on true or objective value. There is no statutory power to vary a Part X deed by resolution. Radin failed to comply with the Deed; it is terminated and his estate sequestrated; other relief sought by Radin is dismissed.

Court Disposition

Deed of Arrangement terminated; estate sequestrated; Radin’s applications dismissed; costs awarded; Bank directed to bring in short minutes.

Orders

  • Deed of Arrangement dated 15 July 1994 between Michael Radin and Peter David Rodgers terminated.
  • Estate of Michael Radin sequestrated.