Laurence, S. & Anor v. Mulroney, P.J. & Ors [1987] FCA 510

Laurence, S. & Anor v. Mulroney, P.J. & Ors [1987] FCA 510

The debtor admitted that one purpose of executing the s.188 authority was to prevent the Court of Appeal from sequestrating his assets. No creditor other than the applicants had taken action, there was no suggestion of current dissipation of assets or current business losses, and no particular need was shown for a controlling trustee apart from the debtor's attempt to prevent possible exercise of Supreme Court powers. Those matters constituted special circumstances justifying release of the debtor's property from control under Division 2 of Part X, with the operation of the order suspended until 10-00AM 21 September 1987.

Jurisdiction
Australia
Judgment Date
18 September 1987
Procedural Posture
Application Under S.208 of the Bankruptcy Act 1966 to Release a Debtor's Property From Control Under Division 2 of Part X / Reasons for Judgment and Orders in the Federal Court of Australia
Outcome
The application was granted; the debtor's property was released from control under Division 2 of Part X, with the operation of the order suspended until 10-00AM 21 September 1987.
Legal Topics
['part X Arrangements' 'controlling Trustee' 'release of Property From Control' 'special Circumstances' 'contempt Proceedings']
['bankruptcy' 'insolvency'] ['part X Arrangements' 'controlling Trustee' 'release of Property From Control' 'special Circumstances' 'contempt Proceedings']

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Procedural Posture

Application Under S.208 of the Bankruptcy Act 1966 to Release a Debtor's Property From Control Under Division 2 of Part X / Reasons for Judgment and Orders in the Federal Court of Australia

Legal Issues

  1. 1 ['Whether the applicants were interested persons within the meaning of s.208 of the Bankruptcy Act 1966.' "Whether special circumstances justified releasing the debtor's property from control under Division 2 of Part X." 'Whether the operation of any release order should be suspended to allow the Supreme Court proceedings to proceed.']

Ratio Decidendi

The debtor admitted that one purpose of executing the s.188 authority was to prevent the Court of Appeal from sequestrating his assets. No creditor other than the applicants had taken action, there was no suggestion of current dissipation of assets or current business losses, and no particular need was shown for a controlling trustee apart from the debtor's attempt to prevent possible exercise of Supreme Court powers. Those matters constituted special circumstances justifying release of the debtor's property from control under Division 2 of Part X, with the operation of the order suspended until 10-00AM 21 September 1987.

Court Disposition

The application was granted; the debtor's property was released from control under Division 2 of Part X, with the operation of the order suspended until 10-00AM 21 September 1987.

Orders

  • ['The property of the debtor Peter John Mulroney be released from control under Division 2 of Part X of the Bankruptcy Act 1966.' 'The operation of Order 1 be suspended until 10-00AM 21 September 1987.' 'Liberty to apply be reserved.' 'Costs be reserved except that there be no order against the applicants as to the...