Kelvin Brian Lamb v Michael Melsom & Terence John Collinson Michael James Hargreaves Duncan v Terence John Collinson [1980] FCA 31

Heard: 26th February 1980 Delivered: llth March 1980

pabnnvPTCt QEGISTEN FILED

41 MAR 1980

pisteict OF THE STATE OF WESTERT AUSTRALIA. }

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IN THE SUPREME COURT } OF WESTERN AUSTRALIA ) EXERCISING FEDERAL ) JURISDICTION IN ) BANKRUPTCY )

BANKRUPTCY DISTRICT OF THE ) STATE OF WESTERN AUSTRALIA )

No. 74 of 1978/X

re: KELVIN BRIAN LAMB

Ex Parte: PETER MICHAEL MELSOM and TERENCE JOHN COLLINSON

No. 70 of 1979 re: MICHAEL JAMES HARGREAVES DUNCAN

Ex Parte: TERENCE JOHN COLLINSON

Mr. R. Harmer appeared for the applicants (instructed by McCusker and Harmer).

BRINSDEN J.

The above matters concern two applications for directions one in each case which came on before me in the Supreme Court of Western Australia exercising Federal Jurisdiction in Bankruptcy. The applications are for directions on behalf of, in action 74 of 1978/X the trustees of a deed of arrangement made by the debtor Kelvin Brian Lamb, and in respect of action 70 of 1979 by the trustee of the bankrupt Michael James Hargreaves Duncan. In each case the application for the purpose of facilitating the proper administration of the joint estate of the debtor and of the

bankrupt seeks an order for the consolidation of the estate

of the bankrupt and the debtor.

2.

I have had the advantage of reading an affidavit of the solicitor acting in respect of both matters who provides me with the background of the applications. Prior to the execution of the deed of arrangement Lamb had been carrying on business in partnership with Duncan under the style or firm name of "Duncan & Lamb Publishers & Associates". On the 3rd January, 1979 Lamb, the debtor, entered into the deed of arrangement already referred to, while on the 2nd March 1979 Duncan filed his petition in bankruptcy and he thereby becqme bankrupt by operation of the Bankruptcy Act 1966. Both the debtor and the bankrupt had separate assets and separate liabilities, but both of them have joint assets being the assets of the business previously mentioned and of course are jointly liable for the debts and liabilities of such business. The business was and is insolvent. The joint assets comprised inter alia some ready realisable assets which the applicants have realized in the course of their respective trusteeships. The proceeds of such realization of joint assets amounts to a considerable sum of money. The funds from the realized assets are currently credited to a separate bank account in the names of the applicants and have been kept distinct and apart from the separate affairs of the debtor and bankrupt. There are other joint assets yet to be realised including a potential substantial claim that the bankrupt and the debtor have against a third party in respect of the acquisition of the business, and in respect of which Litigation will probably eventuate. There are considerable joint debts of the bankrupt and the debtor. It will therefore be necessary for the