Whitton v Perovich [2016] FCA 595

Whitton v Perovich [2016] FCA 595

The compositions terminated automatically under s 222D of the Bankruptcy Act when the debtors failed to pay initial contributions by the due date—a specified circumstance of termination—requiring restoration of all parties to their pre-composition positions.

Jurisdiction
Australia
Judgment Date
30 May 2016
Procedural Posture
Bankruptcy Trustee's Application for Judicial Directions / Judgment Following Application for Directions Interpreting Composition Termination
Outcome
Compositions terminated; parties ordered restored to pre-composition positions; trustee's costs from the bankrupt estates.
Legal Topics
['post Bankruptcy Compositions' 'automatic Termination of Compositions' "trustee's Powers" 'bankruptcy Act Statutory Interpretation']
['bankruptcy' 'insolvency' 'commercial Law'] ['post Bankruptcy Compositions' 'automatic Termination of Compositions' "trustee's Powers" 'bankruptcy Act Statutory Interpretation']

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Procedural Posture

Bankruptcy Trustee's Application for Judicial Directions / Judgment Following Application for Directions Interpreting Composition Termination

Legal Issues

  1. 1 ['Whether default in payment of contributions under a composition results in its automatic termination under s 222D of the Bankruptcy Act 1966 (Cth)' "Whether 'default' is a terminating event within the meaning of s 222D" 'Effect of default on the status of the bankruptcy and the rights of creditors and trustee']

Ratio Decidendi

The compositions terminated automatically under s 222D of the Bankruptcy Act when the debtors failed to pay initial contributions by the due date—a specified circumstance of termination—requiring restoration of all parties to their pre-composition positions.

Court Disposition

Compositions terminated; parties ordered restored to pre-composition positions; trustee's costs from the bankrupt estates.

Orders

  • ['The applicant to notify the Official Receiver under s 224A(3) Bankruptcy Act 1966 of the termination of compositions.' 'Perovich, her creditors, and the applicant are restored to pre-composition positions as at 13 November 2015, with recognition of discharge on 14 November 2015.' 'The same for Spencer and his...