Pyramid Building Society (In Liq) v Terry [1997] HCA 48

Pyramid Building Society (In Liq) v Terry [1997] HCA 48

Contingent liabilities, such as guarantees, are provable debts under Pt X compositions pursuant to s 82(1) of the Bankruptcy Act as modified by r 84 of the Bankruptcy Rules, and thus the composition operates to release the debtor from such liabilities.

Source-derived case information.

Jurisdiction
Australia
Procedural Posture
Appeal / High Court Judgment
Outcome
Appeal allowed
Legal Topics
['composition With Creditors' 'provable Debts' 'contingent Liabilities' 'bankruptcy Act 1966 (cth)']
['bankruptcy' 'insolvency'] ['composition With Creditors' 'provable Debts' 'contingent Liabilities' 'bankruptcy Act 1966 (cth)']

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Procedural Posture

Appeal / High Court Judgment

Legal Issues

  1. 1 ["Whether a contingent liability under a guarantee is a 'provable debt' under s 82(1) of the Bankruptcy Act 1966 (Cth) as modified by r 84 of the Bankruptcy Rules in the context of a composition under Pt X." 'Whether the composition under Pt X operates to release the debtor from contingent liabilities.']

Ratio Decidendi

Contingent liabilities, such as guarantees, are provable debts under Pt X compositions pursuant to s 82(1) of the Bankruptcy Act as modified by r 84 of the Bankruptcy Rules, and thus the composition operates to release the debtor from such liabilities.

Court Disposition

Appeal allowed

Orders

  • ["Paragraph 2 of the Court of Appeal's order set aside" 'Order that the appeal by Mr and Mrs Terry be dismissed with costs']