Re Denning, W.F.J. v. Ex parte The Official Trustee in Bankruptcy [1985] FCA 683

Re Denning, W.F.J. v. Ex parte The Official Trustee in Bankruptcy [1985] FCA 683

The deed of composition entered on 5 November 1982 was valid; the resolution of creditors on 19 October 1983 validly terminated it. However, the subsequent deed of arrangement entered into on 29 November 1983 was invalid as no new authority was given and more than one month had elapsed since the original authority.

Parties
Debtor: William Frederick John Denning; Applicant: The Official Trustee in Bankruptcy
Jurisdiction
Australia
Judgment Date
03 December 1985
Procedural Posture
Bankruptcy Application / Judgment
Outcome
Declarations made in terms of paragraphs 1(a), 2(a), 3(b) of the application. The deed of composition was valid, its termination was valid, but the deed of arrangement was invalid.
Legal Topics
Deed of Composition, Deed of Arrangement, Termination of Deed, Creditors' Meeting
Bankruptcy Deed of Composition Deed of Arrangement Termination of Deed Creditors' Meeting

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Parties

William Frederick John Denning

Debtor

The Official Trustee in Bankruptcy

Applicant

Procedural Posture

Bankruptcy Application / Judgment

Legal Issues

  1. 1 Whether the deed of composition was validly terminated by resolution of creditors
  2. 2 Whether it was competent for the same meeting to resolve that debtor enter into a deed of arrangement

Ratio Decidendi

The deed of composition entered on 5 November 1982 was valid; the resolution of creditors on 19 October 1983 validly terminated it. However, the subsequent deed of arrangement entered into on 29 November 1983 was invalid as no new authority was given and more than one month had elapsed since the original authority.

Court Disposition

Declarations made in terms of paragraphs 1(a), 2(a), 3(b) of the application. The deed of composition was valid, its termination was valid, but the deed of arrangement was invalid.

Orders

  • Declarations be made in terms of paragraphs 1(a), 2(a), and 3(b) of the application.