pe "= YG MENT No. 2! Qa one [7 IN THE FEDERAL COURT OF AUSTRALIA GENERAL DIVISION ~ STATE OF NEW "SOUTH WALES AND OF ) ) BANKRUPTCY DISTRICT OF THE ) No. P 881 of 1983 ) ) THE AUSTRALIAN CAPITAL TERRITORY Re: EDWARD COLIN JAMES FULLERTON EX PARTE: CORAM: DA' s PLACE: ALLSTATES LEASING SYSTEM (N.S.W.) PTY. LIMITED ORDERS ST. JOHN, J. 28 JUNE 1984 SYDNEY Sequestration order made. Order pursuant to S. 52(1A)(b) of the Bankruptcy Act 1966 that the Official Receiver administer the estate of the bankrupt. Order the debtor pay the costs of the petitioner including the reserved costs. 2. amount in respect of which the petition was issued. He bases his counter-claim "on $.71(2) of the Trade Practices Act 1974 which provides that there is an implied condition that goods supplied otherwise than by way of sale, and that of course would include lease. Those goods are reasonably fit for the purpose for which they are supplied where the buyer, or in this case the legsee, either expressly or by implication makes known to the lés8or the purpose for which they are being acquired. That implied condition is subject to an exception where the circumstances show that the consumer does not rely or that it is unreasonable for him to rely on the skill or judgment of, in this case, the lessor. The debtor, Mr. Fullerton, has given evidence firstly that he is a very good mechanic, that he had some knowledge of this vehicle before he actually inspected it for the purpose of entering into the lease or deciding whether to enter into the lease, and that when he did inspect it to decide whether or not to take it on lease he had the assistance of Mr. - Thompson who was a qualified diesel engineer and who apparently presently is a lecturer in diesel engineering at some tertiary education centre. On inspection Mr. Fullerton, and perhaps Mr. Thompson also, found a number of defects and later, after taking outthe lease, found a number more and it appears to me firstly that I find the ground in the petition made out. I find also the other facts which it is necessary to find pursuant to $.52 of the Bankruptcy Act 1966 and I make a sequestration order and I appoint the Official Receiver to administer the estate of the bankrupt and I order that the debtor pay the costs of the peftjtion including reserved costs. I certify that this and the three (3) preceding pages are a true copy of the Reasons for Judgment herein of his Honour Mr. Justice St. John. Associate: Brok Date: 27 JULY 1984