Draper, John Alexander v Brosalco Pty Ltd [1983] FCA 203

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IN THE FEDERAL COURT OF AUSTRALIA

BANKRUPTCY DISTRICT OF THE STATE

No. G 192 of 1983 OF NEW SOUTH WALES AND THE

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AUSTRALIAN CAPITAL TERRITORY

BETWEEN JOHN ALEXANDER DRAPER

Applicant- Debtor

AND BROSALCO PTY. LIMITED

Respondent Petitioning Creditor

Morling J. 10 August 1983

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EX TEMPORE JUDGMENT

This is an application for a stay of further proceedings under a sequestration order made by McGregor J. on 1 July 1983. After his Honour made the sequestration order he granted a stay of proceedings under it for 21 days. I have read his Honour's judgment which was given after a contested hearing in which the sole issue seems to have been whether or not the debtor was in fact indebted to

the petitioning creditor for the amount of a debt in respect

of which a judgment had been recovered in the District Court.

I would have thought that the task of demonstrating that his Honour's decision on that issue was erroneous will

be almost insuperable. However, at the very heel of the hunt

in the proceedings before McGregor J a question was raised

as to whether or not the petition had in fact expired.

The appeal which has been brought to the Full Court raises for consideration not only the correctness of his Honour's decision that the debtor was in fact indebted to the petitioning creditor but also the question whether some fairly recent amendments to the Bankruptcy Act gives the court power to extend the life of a petition after the expiration of twelve months from its presentation. That question may well be arguable and I am not prepared to say that there is no substantial question of law to be argued

on the hearing of the appeal. °

- The stay granted by McGregor J ran*out-on 22 July or thereabouts. It was apparently allowed to run out without an extension of it being obtained and a notice of motion for continuation of the stay was filed in court on 23 July. It came before Neaves J on 28 July and was stood