Richard Waldie Williamson & Jennifer Anne Williamson v Graham Boyd Wearne,William John Boyd Wearne & Isabelle Napier [1980] FCA 110

LO

CATCHWORDS

Bankruptcy application to set aside deed of assignment ~ statement of affairs inaccurate ~- Court will only set aside deed of assignment if it is in the interest of creditors

to do so (s. 222 (5) ) ~ discretion to be exercised with regard to all the circumstances especially benefit to creditors and the public - discussion of s. 222.

Bankruptcy Act 1966, s. 222

RE: RICHARD WALDIE WILLIAMSON and JENNIFER ANNE WILLIAMSON EX PARTE: GRAHAM BOYD WEARNE, WILLIAM JOHN BOYD WEARNE, and

NOS. 63/78/X 64/78/X LOCKHART J.

SYDNEY

13 AUGUST 1980

-__ erence

months.

The debtors were the owners of the freehold of the premises in which the restaurant business was carried on. They terminated the tenancy of Midrena due to its failure to pay rent. Thereafter the debtors resumed the conduct of the business and carried it on in partnership until about February or March 1978 , when they sold both the business and the freehold of the premises to a partnership comprising the debtors, the applicants and the parents of the female debtor.

Only a month later the debtors executed the deeds of assignment in favour of the trustees.

During the period from about October 1977 to March 1978 default judgments were signed against the debtors by a number of creditors in respect of partnership debts, and at least one bankruptcy notice was issued and served on them. Indeed, on the very day the partnership of the debtors, the applicants, and the parents of the female debtor commenced trading, a bankruptcy notice was served on the debtors by one of their creditors, Glenmore Meat Co. Pty. Limited, a creditor in the sum of $3,639.27.

On 14 April 1978 the debtors signed a statement of affairs relating to their joint assets and joint liabilities.

The statement of affairs was annexed to the usual statutory declaration made by them verifying its contents.