Re Draper, John Ex parte Brosalco Pty Ltd [1983] FCA 125
Federal Court of Australia
Full text
Select any passage to save a personal note with optional tags.
IAD \%9
a
CATCHWORDS
Bankruptcy Petition - Notice of Opposition - debt on
which petition relied said not to be of judgment debtor -
going behind judgment - original contract with judgment
debtor - payments of debt by company not judgment debtor -
dealing by petitioning creditor consistent with contract
by him personally - order extending time at the
expiration of which the petition will lapse - order made
after 12 months had expired.
Bankruptcy Act 1966 s.33(1)(c), s.52
RE: JOHN DRAPER EX PARTE: BROSALCO PTY. LIMITED
No. P.671 of 1982
McGregor J.
1 July 1983
AT SYDNEY
IN THE FEDERAL COURT OF AUSTRALIA
GENERAL DIVISION
)
)
BANKRUPTCY DISTRICT IN THE STATE ) No. P.671 of 1982
)
OF NEW SOUTH WALES AND THE )
)
)
AUSTRALIAN CAPITAL TERRITORY
REs JOHN DRAPER
EX PARTE:
BROSALCO PTY. LIMITED
ORDER
JUDGE MAKING ORDER: MCGREGOR J.
DATE OF ORDER: 1 July 1983
WHERE MADE: SYDNEY
THE COURT MAKES THE FOLLOWING ORDERS:
1. The period of the expiration of which the
petition will lapse will be a period of 24 months
commencing on 17 June 1982.
2. A Sequestration Order against the estate of
the judgment debtor.
3. The judgment debtor is to pay the petitioning
creditor's costs of and incidental to the petition
and the opposition thereto including reserved costs.
IN THE FEDERAL COURT OF AUSTRALIA
GENERAL DIVISION
BANKRUPTCY DISTRICT IN THE STATE No. P.671 of 1982
OF NEW SOUTH WALES AND THE
AUSTRALIAN CAPITAL TERRITORY
RE: JOHN DRAPER
Ex parte: BROSALCO PTY. LIMITED
REASONS FOR JUDGMENT
McGregor J.
Date: 1 July 1983
BROSALCO PTY. LIMITED (petitioning creditor) has
presented a petition for the sequestration of the estate of JOHN
DRAPER (judgment debtor) said to be in respect of an amount of
$6,712.68 being the amount due under the final judgment recovered
in the District Court on 17 October 1979 together with interest
amounting to $1,554.03 as at 9 February 1982.
In respect of that Petition, the judgment debtor has
filed a Notice of Opposition which, omitting formal parts,
reads:-
"1. The debtor, (as alleged) is solvent and
able to pay his debts as and when they
fall due.
2.
2. The debtor is not indebted to the
petitioning creditor as the debt the
subject of the judgment was incurred by a
company of which the debtor was a
director.
3. Default judgment was obtained by the
judgment creditor by fraud in that an
affidavit of debt was sworn when the
deponent knew full well that the debt was
a company debt."
The said Notice was filed on 30 July 1982. Counsel for the
judgment debtor informed me that he was not proposing to try to
support para.1l of the Notice of Opposition.
It will be useful to refer to the sequence of events
leading up to the present proceedings.
It appears that the alleged transaction between the
petitioning creditor and the judgment debtor commenced subsequent
to early 1976 when the petitioning creditor advertised a sale of
cane products. Thereafter, the judgment debtor came to the
petitioning creditor's showroom and it is alleged that
arrangements were made for the sale of stock of cane furniture
whereafter deliveries were made from time to time to the judgment
debtor. A statement of debts alleged to have been incurred for
these deliveries is annexed to an affidavit of 30 August 1982 of
Iris Broese van Groenou, to whom I shall refer hereafter as van
Groenou, a director of the petitioning creditor showing amounts
of invoices debited and amounts paid by way of creditors of the
account from time to time. The first entry on the statement is
in July (possibly the 5th) 1976 and the last, other than a
3.
reference to writing off a bad debt, is on 4 October 1978. In
fact, the last four entries on the statement of account are of 5
September 1977, 6 January 1978, 9 July 1978 and 4 October 1978,
being credits as to two payments of $1,000.00 and as to two other
payments, $500.00 each.
A Statement of Liquidated Claim in respect of this debt
was 1ssued on 10 October 1978 and said to have been served cn the
judgment debtor on 13 Octcber 1978, containing a common money
count for goods sold and delivered in the said sum of $6,537.18.,
being the balance then outstanding between the parties. The
judgment debtor claimed in an affidavit of 18 December 1981 that
the said Statement of Liquidated Claim did not come to his notice
until some three months later, which would be sometime about the
end of January 1979. However, in a chronology of events produced
at my invitation, and I understood, by agreement, it is said that
the Statement of Claim was served on 13 October 1978. On 17
October 1979, judgment was signed against the judgment debtor for
the sum of $6,537.18 together with $175.50 for costs i.e.
$6,712.68. On 14 January 1980, an affidavit was sworn and lodged
in court on 18 January 1980 to ground a writ of execution against
the judgment debtor. From a judgment of his Honour Judge
Melville Q.C. in the District Court, delivered on 12 December
1980, it appears there was an attempt to serve the writ but no
history thereafter of that writ. However, from the judgment it
appears that there was an attempted execution by the plaintiff on
or about 14 April 1980. No goods were found. These events
4.
reveal that there was a significant passage of time during which,
so far as evidence reveals, there was no denial that the
petitioning creditor was the proper plaintiff. On 27 or 28
November 1980 Notice of Motion to set aside the judgment was
filed.
On 12 December 1980, in the judgment to which I have
referred the learned District Court Judge dismissed this
application. He was not satisfied there was any viable type of
defence or prima facie defence, He also considered there was no
reasonable excuse shown for the delay in making the application.
On 5 May 1981, an application was made for the issue of
a Bankruptcy Notice; it was issued on 27 May 1981 and served on
the judgment debtor on 21 November 1981. By Notice of Motion
dated 18 December 1981 a further application was made to the
District Court to have set aside the judgment the subject of the
Bankruptcy Notice. On 21 December 1981, by order of this court,
there was a stay of proceedings and time for compliance with the
Bankruptcy Notice was extended to 9 February 1982.
On 5 February 1982 the second application to set aside
the judgment was heard and dismissed by his Honour Judge Williams
of that court. On 9 February 1982 the stay referred to above was
dissolved. On 17 June 1982 a Creditor's Petition was issued
alleging a debt to the petitioning creditor in the sum of
$6,712.68 together with interest from the date of judgment, viz.
17 October 1979 to 9 February 1982, amounting to $1,554.03.
On 22 June 1982 and by arrangement the Petition was
served at the offices of the Solicitors for the Judgment debtor.
On 30 July 1982 the Notice of Intention to Oppose Petition
already quoted was filed.
After some further adjournment, the matter was listed
for hearing for 10 November 1982; but then adjourned on the
application of the judgment debtor. It was relisted to 23
February 1983, a date which was vacated on the application of the
petitioning creditor. It was relisted for 12 April 1983 and part
heard at the end of that day. Evidence has been tendered on
behalf of the petitioning creditor. It is not disputed that the
evidence, except for the said Notice and evidence adduced by the
judgment debtor is sufficient to entitle the petitioning creditor
to a Sequestration Order.
Reference may now be made to the Notice of Intention to
Oppose the Petition quoted earlier. Counsel for the judgment
creditor submitted that this is a proper case in which the
Judgment debtor should be allowed to go behind the judgment
presently standing in favour of the petitioning creditor. The
debt, he argues, the subject of the judgment, was incurred by a
company of which the debtor was a director, i.e. that it was not
incurred by the latter personally.
6.
In his affidavit sworn on 13 August 1982 in support of
the application, the debtor claims that he is not indebted to the
petitioning creditor, that he was a director of a company called
All Round Developers Pty. Limited, that this company was the
original proprietor of a registered business name "Tropical Cane
Centre" whose business was carried on at 378 Pacific Highway,
Crows Nest, but that the said company ceased to be the proprietor
on 18 August 1977. The affidavit of the said judgment debtor,
so far as it was pressed after objection as being admissible
evidence before me in relation to the judgment debtor's original
dealing with the petitioning creditor reads as follows -
(iv) In relation to the company's dealings
with the plaintiff I say that in or about
early 1977 I saw an advertisement in the
Sydney Morning Herald for a sellout of
cane products by Brasalco Pty. Ltd. I
telephoned the plaintiff and spoke to a
person I believed was a director of the
company, Iris Broese......We arranged to
meet at the premises at Rushcutters Bay
and I negotiated to purchase the
stock....
(iv) (sic) In relation to the plaintiff's
dealings, it is clear that as at 2nd May
1977 the date of its invoice 001088, the
plaintiff was dealing with the Tropical
Cane Centre of Pacific Highway, Crows
Nest (the street number in the invoice is
incorrect). Annexed hereto and marked
"B" is a photocopy of the invoice
aforesaid.
7.
(The transcript p.13 lines 16 and 19 as to this affidavit refers
to the words "I never" where the correct reference was to the
words "I informed").
The judgment debtor further, in his said affidavit,
alleges that the said company paid to the plaintiff amounts in
the order of some $15,000 and that -
"I say that "All Round Developers Pty.
Limited" paid to the plaintiff herein an
amount in the order of some $15,000 although I
cannot be sure of the exact amount. Every
cheque bar the last payment of $500 was paid
by the company. Exhibited to me at the time
of swearing this my affidavit 1s the company
cheque book for the period of 23rd November
1977 to 30 July 1979. The cheque book is
exhibited and marked "D". The cheque butts
record two payments to Brosalco, the first of
7th January 1978 (cheque no. 258318) and the
second on 29th September 1978 (cheque no.
258417)."
In his viva voce evidence he agreed that the cheques had
overprinted on them where the payer would sign, the words
"Tropical Cane Centre" there being no reference onthe cheque to
the name of the company "All Round Developers Pty. Limited".
Further, in support of the Notice of Motion, an affidavit was
sworn on 29 November 1982 and filed on 30 November 1982 by
Philip Scott Thornton. So far as it was pressed by counsel for
the judgment debtor, it reads as follows -
3. ---I refer to my further knowledge of
such a state of affairs by reference to
annexure 'A', as I assisted John DRAPER
and others to design the business logo
that appears on that document, which
clearly shows a reference to the parent
firm.
8.
4. I became aware of the firm known as
BROSALCO PTY. LIMITED when they
advertised in Sydney newspapers for the
sale of cane furniture. I was directed
to attend the offices and
warehouse/showroom of that firm situated
at Paddington/Rushcutters Bay. Ithere
spoke to Mr. & Mrs. BROESE, who I
understood were directors of BROSALCO
PTY. LIMITED. I introduced myself and
gave them a business card with the
business logo of The Tropical Cane
Centre...
5. I had discussions with Mr. & Mrs. BROESE
regarding the terms of purchase by my
employers, The Tropical Cane Centre. I
inspected the goods, did a stock take and
later returned and gave this information
to Mr. Draper. I am aware that Mr. &
Mrs. BROESE came to the Tropical Cane
Centre at CROWS NEST on at least two
occasions.
8. I had many conversations with Mrs. BROESE
regarding the delivery of the cane
furniture, and payments to her
company..."
It is not suggested that the annexure to which the
affidavit refers was served on the petitioning creditor.
During the hearing I invited counsel for the judgment
debtor to comment on the documentation offered in proof of the
case for the petitioning creditor, i.e. apart from the matters
specified in the Notice of Opposition. He told me that it had
been discovered that the amount claimed as the petitioning
creditor's debt was overstated. However, he did not seek any
amendment of the Notice of Opposition so that it might include
such a claim; nor did his client make any such assertion in his
9.
affidavit of 13 August 1982. Counsel has not offered any comment
on the discrepancy between the amount asserted in the petition as
being the indebtedness of the judgment debtor, viz. $6712.68,
as the amount due under the judgment debt of 17 October 1979
together with interest as at 9 February 1982 of $1554.03; which
sum and indebtedness was verified by the affidavit of van Groenou
dated 9 June 1982 and the amount verified as being owing in the
affidavit of the same deponent of 12 April 1983 tendered to
satisfy the requirements of Rule 21(1)(b) of the Bankruptcy
Rules. That affidavit states the amount of $6712.68 owing by
John Draper, the debtor, under the judgment is still wholly due
and unsatisfied, i.e. it makes no reference to the interest. It
appears to me that the Rule 21(1)(b) affidavit of van Groenou
failed to advert to the existence of the debt in respect of the
interest. In this litigation I consider that no one has been or
could be misled. The Rule 21(1)(b) affidavit of 12 April 1983
was filed long after the Notice of Opposition. The opposition
was to the Petition. No objection to the Rule 21(1)(b) affidavit
was made; no cross examination on these figures was put to van
Groenou; no substantial or any injustice could have been caused
by the difference in figures which therefore may be disregarded.
As I have said earlier, the judgment debtor has sought
to go behind the judgment to show that the debt was owed not by
him personally but by a company All Round Developers Pty. Limited
(the company). The evidence as to ownership and disposal of the
business name, Tropical Cane Centre, is unchallenged. I accept
it.
10.
The list of payments made to the judgment creditor,
however, 1s annexed to the affidavit of 30 August 1982 of van
Groenou which has not been questioned and is consistent with
there being five cheques from "Tropical Cane Centre", five
cheques from the company, one cheque from J.A. Draper and, as
mentioned above, one from "J.A. Draper Carunya Properties". The
first cheque paid to the petitioning creditor apparently was
drawn by the company. I agree with the comment of Lockhart J. in
Simon v. O'Gorman 27 ALR 619 at p.637 that it is not uncommon in
business for payments to be made by persons other than those with
whom the relevant contract has been made.
The affidavit of the judgment debtor of 13 August 1982
and affidavits filed on his behalf by Philip Scott Thornton and
Jacqueline Monique Quemeneur do not include any reference to
written communication with or conversation by the judgment debtor
with executives of the petitioning creditor that the company was
the purchaser of the cane products; though he asserted in it
that it was clear as at 2 May 1977, the date of invoice No.
001088, the petitioning creditor was dealing with the Tropical
Cane Centre of Pacific Highway, Crows Nest, and that statements
were issued in the style of the Tropical Cane Centre. The
affidavit of van Groenou is consistent with this; in that she
said she asked the judgment debtor, apparently at their first
meeting, to whom the goods were to be invoiced; and he replied
"Tropical Cane Centre". She stated that at no time did the
11.
judgment debtor mention that he was acting on behalf of or
representing any other person or company. She denied that any
invoices or other documents were ever received by the petitioning
creditor from the company; nor was its existence made known to
her by the judgment debtor. This last statement could be argued
to be somewhat inconsistent with there having been received by
the petitioning creditor as the first payment for the cane
products a cheque from the company. I am satisfied she did not
notice the signature on the cheque. She stated that no
notification had ever been received from the company indicating
any liability on that company to the petitioning creditor.
Copies of letters dated 21 November 1977 and 31 May 1978 said to
have been sent to the judgment debtor were annexed to the
affidavit. They are in the nature of letters of demand. They do
not refer to the company. Copies of three invoices dated 1 April
1977, 1 July 1978 and 1 March 1979 from the petitioning creditor
in respect of goods sold were annexed to the affidavit of the
judgment debtor dated 13 August 1982. They are addressed to -
1. Tropical Cane Centre, 278 Pacific
Highway, Crows Nest.
2. The Tropical Cane Centre
Mr. John Draper,
155 Strathallan Avenue
Northbridge
3. As in 2 above.
On the last of these there is an admonitory note
handwritten by van Groenou addressed to the judgment debtor
personally. They were written before proceedings commenced.
12.
Yolanda Barrington Davies, in an affidavit filed on
behalf of the petitioning creditor, denied ever hearing the
judgment debtor say that he was purchasing as agent for or on
behalf of the company. She said in evidence - and I see no reason
to disbelieve her - that it did not occur to her that the name
The Tropical Cane Centre may have been a business name for the
company.
Already I have referred to the period of time between
service of the Statement of Liquidated Claim, or the judgment
debtor's awareness of it, and the signing of judgment, no defence
having been filed. There followed the unsuccessful attempt at
execution.
It is well settled that this Court may, in a proper
case, "go behind" a judgment, e.g. in a case where a petition is
founded on a Bankruptcy Notice which relies upon an unsatisfied
judgment. Perhaps, in some instances, it will more readily do so
where the judgment was by default - see, e.g. Corney v. Brien
(1951) 84 C.L.R. 343 (Corney) at p.352; though in that case
there was no consideration for the alleged debt. Fullagar J., in
the same case, at p.357 quoted the words of Lord Esher M.R. in In
re Hawkins; Ex parte Troup (1895) 1 Q.B. 404 -
"I myself should say that the question for the
court is whether there 1s, or 1s not, a
reasonable doubt that the judgment has been
obtained by one side or the other fairly."
13.
Fullagar J. was referring to a case of a judgment obtained by
compromise. His Honour went on (ibid) to say that where the
judgment is by default "it appears that the court will always "go
behind" the judgment if there is what it regards as a bona fide
allegation that no real debt "lay behind" the judgment." He
added (p.358) -
"The question whether the judgment is to be
reopened or "gone behind" at all will, of
course, often involve some preliminary
investigation of the merits of the attack on
the judgment."
In Wren v. Mahony (1971) 126 C.L.R. 212 (Wren) at p.224
Barwick C.J. said at pp.224-5 -
"It is not the law, in my opinion, that
whether in any case the Court of Bankruptcy
will consider whether there is satisfactory
proof of the petitioning creditor's debt is a
mere matter of its own discretion. Nothing in
Corney v. Brien (1951) 84 C.L.R. 343 lends
support for such a view. Rather the emphasis
is upon the paramount need to have
satisfactory proof of the petitioning
creditor's debt. The Court's discretion in my
opinion is a discretion to accept the judgment
as satisfactory proof of that debt. That
discretion is not well exercised where
substantial reasons are given for questioning
whether behind that judgment there was in
truth and reality a debt due to_- the
petitioner."
Authorities which bear upon the topic "going behind the judgment"
are collected in Simon v. O'Gorman (1979-1980) 27 ALR 619.
14.
The assertion is that the debt is owed by another entity
(the company) which has not, I note, offered to pay it and I
understand is in financial difficulties. The judgment debtor is
a director of that company.
I consider van Groenou was a careful and truthful
witness, whose version of the initial arrangements I accept.
On that evidence there was no mention to her by the judgment
creditor of the company at all. Van Groenou and the petitioning
creditor, through her, were entitled to and did understand it was
dealing with the judgment debtor or the judgment debtor trading
as The Tropical Cane Centre. That it was so dealing
is supported by documents. The content of her letters to the
judgment debtor earlier mentioned, sending the invoices dated 1
April 1977 and the accounts rendered of July 1978 and March 1979
(with hand written comments) are consistent with regarding John
Draper as the person who owed money to the petitioning creditor
and quite inconsistent with there being any relevant involvement
of the company. If it could be said that the judgment debtor
was an agent contracting on behalf of an undisclosed principal,
viz. the company, he is still liable personally. See generally
Law of Contract Cheshire & Fifoot 4th Australian Edition para.
2058, 2063. This matter is not within the class of cases
referred to by Fullagar J. in Corney at p.357 where there 1s a
"bona fide allegation that no real debt lay behind" the judgment.
There has been more than merely a "preliminary investigation of
15.
the merits of the attack on the judgment" (ibid p.357); and that
investigation supports the case for the petitioning creditor that
there was a debt and that it was properly due to it. I come to
this view without the necessity to regard the judgment itself as
prima facie evidence of the debt, a phrase quoted in Corney at
p.358, or as some satisfactory proof of that debt as suggested in
Wren at p.224 by Barwick C.J. In my opinion the court should
not go behind the judgment. If it did, on the evidence before
me, the petitioning creditor has satisfied me that it was
entitled to judgment against the judgment debtor.
I find there was no fraudulent conduct by van Groenou or
anyone acting on behalf of the petitioning creditor. On the
material before me such a charge is without justification.
At the end of this hearing and after more than half his
closing submissions had been made, counsel for the judgment
debtor pointed out that the Petition issued on 17 June 1982 had
lapsed. He referred to s.52(4) of the Bankruptcy Act 1966 (the
Act). That section reads -
"A creditor's petition lapses at the
expiration of -
(a) subject to paragraph (b), the period of
12 months commencing on the date of
presentation of the petition; or
(b) if the Court makes an order under
sub-section (5) in relation to the
petition - the period fixed by the order,
unless, before the expiration of whichever of
those periods is applicable, a sequestration
Sub-s.
period at the expiration of which the petition would lapse
extended so as to enable a Sequestration Order to be made if the
Notice of Opposition were not upheld.
that the court could only extend the life of the petition if
application is made
months commencing on the date of presentation of the petition.
on 9 June 1982.
16.
order is made on the petition or the petition
is dismissed or withdrawn."
is also relevant and reads -
"The Court may, at any time before the
expiration of the period of 12 # 4months
commencing on the date of presentation of a
creditor's petition, if it considers it just
and eguitable to do so, upon such terms and
conditions as it thinks fit, order that the
period at the expiration of which the petition
will lapse be such period, being a period
exceeding 12 months and not exceeding 24
months, commencing on the date of presentation
of the petition as is specified in the order."
Counsel for the petitioning creditor sought to have the
The petition was presented on 17 June 1982, or perhaps
That sub-section reads -
The Court may -
(c) extend before its expirtation or, if this
Act does not expressly provide to the
contrary, after its expiration, any time
limited by this Act, or any time fixed by
the Court or the Registrar under this Act
(other than the time fixed for compliance
with the requirements of a bankruptcy
notice), for doing an act or thing or
abridge any such time."
It was submitted in reply
"before the expiration of the period of 12
Reference was made to s.33(1)(c) of the Act.
17.
The words underlined were added by Act No. 12 of 1980. The same
Act introduced s.41(6A), (6B) and (6C) which makes particular
provision for time for compliance with Bankruptcy Notice. No
authority referring to these sections or otherwise has been drawn
to my attention. In my opinion that the legislature referred to
a Bankruptcy Notice in s.33(1)(c) makes it easier to conclude
that the life of the petition, being the process which relies on
a Bankruptcy Notice in most applications for sequestration, was
not to be so tightly controlled. In s.52(5) where provision is
made for the life and extension thereof of a petition, the word
"may" imports a discretion, referable, I suggest, to the wisdom
of extending the life of the petition and not permissively, as it
were, to doing so within the period of 12 months. If it were
otherwise I would have expected the comma to be after "Court",
not "may". "Expressly" in s.33(1)(c) amports the meaning of
clearly or unequivocally. For example, that sub paragraph itself
expressly provides that the time for compliance with the
requirements of a bankruptcy notice may not be extended after its
expiration, no doubt because of the detailed provision for such
extension in s.41 (cf. James v. Abrahams 34 ALR at 662 per Deane
(as he then was) and Lockhart JJ.). In my view, s.52(5) does
not expressly provide that the court may not after its
expiration, extend (the relevant) time at the expiration of which
the period lapses. I am unaware of any authority which precisely
considers this problem. In The Metropolitan District Railway
Company v. Sharpe H.L. 50 L.J.N.S. 14 support, I suggest, 1s
18.
found for the view I favour. In that case there was reference to
a private Act of Parliament which provided a special tribunal to
arbitrate any claims for compensation for injury to land by the
works of a railway company; but no provision was made for costs.
The same Act incorporated the Lands Clauses Consolidation Act,
1845 "except where expressly varied" by the special Act.
Following an arbitration a plaintiff applied for costs relying on
the power to award costs given in s.34 of the 1845 Act. It was
held that the provisions of s.34 were not "expressly varied" by
the section of the special Act which provided a different
tribunal of arbitration; but that these provisions applied to
arbitration under the section of the special Act. Lord Blackburn
said at p.21 -
"I do not think that because the words used in
this Act are "expressly varied" it is
essentially necessary that there should be
express words saying, This particular section
or provision shall not apply. I do not think
that express words are required for that
purpose, but it does require something that
indicates an express intention that they shall
not apply as far as applicable to the present
case. A mere variation from the ordinary type
and form would not be sufficient to prevent
the clause applying. A variation shewing that
the provision was inapplicable would have the
same effect as if it were expressly varied."
See also Paton's Trustees ~ Petitioners 1953 S.L.T. 276 at p.277.
Lord Guthrie, referring to the Trusts (Scotland) Act 1921
providing that the court may authorise advances to beneficiaries
where e.g. "not expressly prohibited by the trust deed", said -
19.
"The words "expressly prohibited" in the
section mean that the trust deed must contain
a clear and specific provision that
advances....shall not be made to
a....beneficiary."
As to the meaning of "extend" see per Fullagar J. in Esso
Research and Engineering Company v. Commissioner of Patents
(1960) 102 C.L.R. 347 at p.351 or Streimer v. Tamas 37 ALR 211
(Streimer) at p.222.
In my opinion, in order that the contention advanced on
behalf of the judgment debtor should succeed, there would have to
be in s.52(4) or s.52(5) or elsewhere something that indicates
expressly that the words of s.33(1)(c) do not apply to
sub-sections (4) and (5). There is no such indication to be
found in the sub-sections.
It may also be that I have power to make the order I
propose by reference to inherent power. See per Sheppard J. in
Streimer at p.223. The "slip rule", as referred to in his
Honour's judgment in that case may also apply, in the sense that
the court proceeded up to the end of the hearing upon the basis
that the petition had not lapsed. Had the imminence of this been
drawn to attention at an appropriate time, I would have extended
its life pursuant to s.52(5) and at least to such time as this
judgment was given.
20.
In this case that the petition should lapse would be
entirely fortuitous, i.e. because of the passage of time during
adjournment. I am entirely confident that this was something
which never occurred to either counsel or, for that matter, the
presiding judge. Orders to extend the life of a petition as a
matter of practice are constantly made, and ought to be made on
the facts of this case.
I am satisfied -
(a) that the judgment debtor committed the
act of bankruptcy alleged in the
petition;
(b) of the other matters of which s.52(1) of
the Act requires proof.
I make the following orders -
1. The period of the expiration of which the
petition will lapse will be a period of
24 months commencing on 17 June 1982.
2. A Sequestration Order against the estate
of the judgment debtor.
3. The judgment debtor is to pay the
petitioning creditor's costs of and
incidental to the petition and the
opposition thereto including reserved
costs.
I note that Laurence Brian Hunter, a registered trustee,
has consented to act as trustee of the estate of the debtor.
I direct the petitioning creditor, pursuant to R.124(2),
to deliver a draft of these orders to the Registrar within seven
days therefrom.