Banfield, Gordon Douglas v The Official Receiver [1981] FCA 236

Banfield, Gordon Douglas v The Official Receiver [1981] FCA 236

The questions were stopped prematurely. Because alleged sales at an under value or collusive conduct between the mortgagor companies and the mortgagee could affect the bankrupt's liability under the guarantees and the amount properly provable in the bankrupt estate, the trustee was entitled to examine the bankrupt on those matters notwithstanding the related Supreme Court proceedings or the possible role of liquidators.

Jurisdiction
Australia
Judgment Date
25 August 1981
Procedural Posture
Application to Review the Registrar's Decision on Admissibility of Questions in a Bankruptcy Examination Under S.69 of the Bankruptcy Act / Review Before Fox J in the Federal Court of Australia
Outcome
Matter returned to the Registrar with reasons indicating that the relevant questions should be allowed.
Legal Topics
['s.69 Bankruptcy Examination' 'admissibility of Examination Questions' 'proof of Debt' 'guarantees' 'mortgagee Sale at Under Value' 'pending Related Proceedings']
['bankruptcy' 'civil Procedure'] ['s.69 Bankruptcy Examination' 'admissibility of Examination Questions' 'proof of Debt' 'guarantees' 'mortgagee Sale at Under Value' 'pending Related Proceedings']

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Procedural Posture

Application to Review the Registrar's Decision on Admissibility of Questions in a Bankruptcy Examination Under S.69 of the Bankruptcy Act / Review Before Fox J in the Federal Court of Australia

Legal Issues

  1. 1 ['Whether questions directed to the bankrupt about alleged sales at an under value or collusive arrangements between mortgagor companies and the mortgagee were admissible in an examination under s.69 of the Bankruptcy Act.' 'Whether the pendency of Supreme Court proceedings or the possible role of company liquidators justified stopping or postponing that line of questioning.']

Ratio Decidendi

The questions were stopped prematurely. Because alleged sales at an under value or collusive conduct between the mortgagor companies and the mortgagee could affect the bankrupt's liability under the guarantees and the amount properly provable in the bankrupt estate, the trustee was entitled to examine the bankrupt on those matters notwithstanding the related Supreme Court proceedings or the possible role of liquidators.

Court Disposition

Matter returned to the Registrar with reasons indicating that the relevant questions should be allowed.

Orders

  • ['The Registrar should allow questions along the lines outlined in paragraph one of the application.' "The matter is returned to the Registrar so that the examination may proceed in accordance with the Court's reasons."]