Re Skender, Momcilo Ex Parte Trevor, Garry John & Anor as Trustees of Skender, Momcilo, a Debtor [1996] FCA 556

Re Skender, Momcilo Ex Parte Trevor, Garry John & Anor as Trustees of Skender, Momcilo, a Debtor [1996] FCA 556

Leave is granted under s135(1)(d) of the Bankruptcy Act 1966 for the trustees to mortgage Lot 287, to use the funds to purchase and amalgamate Lot 288, and then sell the combined property for the benefit of the creditors, as the dominant purpose is to raise money for debts provable in bankruptcy.

Jurisdiction
Australia
Judgment Date
25 June 1996
Procedural Posture
Bankruptcy Application / Ex Parte Application for Leave Under Bankruptcy Act
Outcome
Leave granted for proposed transaction under s135(1)(d) of Bankruptcy Act 1966; declaration sought refused.
Legal Topics
['powers of Trustees' 'mortgaging Property of Bankrupt' 'acquisition and Sale of Property in Bankruptcy']
['bankruptcy'] ['powers of Trustees' 'mortgaging Property of Bankrupt' 'acquisition and Sale of Property in Bankruptcy']

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Procedural Posture

Bankruptcy Application / Ex Parte Application for Leave Under Bankruptcy Act

Legal Issues

  1. 1 ['Whether trustees have power to mortgage property of the bankrupt to acquire adjoining land for the benefit of creditors' 'Whether court can grant leave to mortgage and purchase property under sections 134 and 135 of the Bankruptcy Act 1966']

Ratio Decidendi

Leave is granted under s135(1)(d) of the Bankruptcy Act 1966 for the trustees to mortgage Lot 287, to use the funds to purchase and amalgamate Lot 288, and then sell the combined property for the benefit of the creditors, as the dominant purpose is to raise money for debts provable in bankruptcy.

Court Disposition

Leave granted for proposed transaction under s135(1)(d) of Bankruptcy Act 1966; declaration sought refused.

Orders

  • ['Trustees given leave to mortgage Lot 287 to borrow $32,000 for purposes of purchasing Lot 288 and paying associated costs.' 'Trustees given leave to purchase Lot 288 for $29,000 and amalgamate with Lot 287.' 'Trustees given leave to sell the amalgamated property, pay out encumbrances and apply net proceeds to...