JERE E He LEME AS fis at id f &@ Le f U8 95 jE CATCHWORDS Ay . . . ; Bankruptcy - application for discharge - sequestration, é order made in 1962 - unsatisfactory conduct~—_by bankrupt - refusal of two prior applications for dascharge - discretion - third application granted Bankruptcy Act 1966, ss. 149,.150 Bankruptcy Amendment Act 1980, sub-s.72(2) RE: LANCE AUSTIN DAVIS EX PARTE: THE BANKRUPT (Applicant) Morling J. 16 August 1985 Sydney IN THE FEDERAL COURT OF AUSTRALTA GENERAL DIVISION BANKRUPTCY DISTRICT ie OF THE STATE OF NEW SOUTH WALES No. 58 of 1962 "AND THE AUSTRALIAN CAPITAL ee eee ee TERRITORY RE: LANCE AUSTIN DAVIS EX PARTE: THE BANKRUPT (Applicant) MINUTE OF ORDER JUDGE MAKING ORDER : Morling J. DATE OF ORDER : 16 August 1985 WHERE MADE - : Sydney THE COURT ORDERS AS FOLLOWS: 1. That the applicant be discharged from bankruptcy. NCTE: settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules. It THE FEDERAL COURT OF AUSTRALIA GENERAL DIVISTON BANKRUPICY DISTRICT OF THE STATE OF NEN SOUTH WALES No. 58 cf 1962 AND THE AUSTRALIAN CAPITAL ee ee ed TERRITORY RE: LANCE AUSTIN DAVIS EX PARTE: THE BANKRUPT (Applicant) CORAM: Morling, J. DATED: 16 August 19285 REASONS FOR JUDGMENT The applicant seeks an order that he be discharge from bankruptcy. A sequestration order was made against the apylicant on 6 February 1962. The history of his bankruptcy is referred to at length ain ths judgment of McGregor J. of 24 July 1981 when he retused a previous application for discharge and I need only rerer to the salient events in it. On 21 April 1966 Clyne J. mad2 an order that the applicant should pay the sum of B11,678.15.8 to the Official Receiver, or transfer te him within a specified time any assets into which the said sum had been transposed. This order has never been complied with. On 29 August 13/3 Sweeney J. refused an application by the bankrupt that he be discharged from bankruptcy. In his reasons the learned judge said that he was satisfied with the conclusions to which the Official Receiver had come in paragraphs 17, 18 and 19 of his report. Those paragraphs were in the following terms: "L?. The bankrupt's "conduct throughout his bankruotcy has been most unsatisfactory in that: - (a) He has made no contributions to his estate. (b) He has changed his address on a number of occasions without advising the Registrar in Bankruptcy or the trustee of such changes as per the provisions of Section 80 of the Act. In correspondence a Post Office hox number was generally used. (c)} He has written a series of abusive and threatening letters, at one time threaten- ing to do harm to the then Official Receiver, (d) He has failed to assist me in the admin- istration of his estate and on one occasion was required to be arrested because or his failure to attend for examination. (e) He has failed to satisfactorily account to me for the sum of $22,358.06, as mentioned an paragraph 15, cr for any assets into which the said sum may have been transposed. "18. i consider the bankrupt has committed offences under the Act as follows: - Secti go n265 - Being a bankrupt tz {b) He did not, to the best of his knowledge and belief, fully and truly disclose to the trustee particulars of anv disposition of property made by him within the period of two years immediately preceding the date on which he bacame a bankrupt in that he has 3. failed to disclose the disposition of the sum of $23,358.00 being part of che proceeds of the sale of a property sold hy him on 26 April, 1961. Section 270 {1) - (a) He did not keep such books, accounts and records as are usual and proper in the business carried on by him to sufficiently disclose his business transactions and financial position between 6th February, 1957 and April, 1961 being a period in which he carried on business within the five years immediately preceding the date on which he becamé a bankrupt; or (b) Having kept such books accounts or records, he has not preserved them. "19. I report the following fact under Section 150(6) - (a) that the bankrupt has omitted to keep and preserve such books, accounts or records as sufficiently disclose his business trans- actions and financial position within the period of five years immediately preceding the date' on which he became a bankrupt; (b) that the bankrupt has failed to account satisfactorily to the trustee for any loss of, or depreciation of, assets or for a deficiency of assets." The applicant has not complied with the order made by Clyne J. on 21 April 1966 relating to the paynent of the above- mentio:ci sum of money to ths Official Receiver. On 24 July 1981 McGregor J. refused the applicant second application for discharge. McGregor J. was of opinion that the bankrupt's behaviour had been génera unsatisfactory, that he had failed to account for assets that he had ignored the order made by Clyne J. On 7 July 1970 an objection bankrupt from his bankruptcy form) of the Bankruptcy Act 4. to the discharge cf the Official Receiver as trustee, "1. The bankrupt deficiency whic 2. No contributions haye been received." That objection was extant at McGregor J. The objection virtue of the effect of by force of s.149 (in its then 1966 was lodged by the then on the following grounds: is .unable to explain the h is in excess of $15,900. the time the matter came before has not been withdrawn, but by sub-s.72(2) of the Bankruptcy Amendment Act 1980 it will cease to be of effect on 1 February 1986. The -bankrupt now ma discharge. He has now been years. His conduct has been 1t is competent for the Court the exercise of its discretion grant his application. On m m ct In if) >) Court has a wide disc parte The Bankrupc (1351) 19 exercising its discretion the interests of the public and of Having cegard to ail particularly the fact that ABC 33 at 5.41 per Cl kes his third application for a bankrupt for over twenty three unsatisfactory but nevertheless to grant him a discharge if, in , it thinks it is appropriate to an application for discharge the ses Re David Howard Prin (ve) aD ey hgw qa tH ba Court must have regard to the the debtor and his creditors. the circumstances of the case, now been & WwW the applicant ha bankrupt for twenty three years and bearing in mind the operation of sub-s.72(2) of the Bankrustcy Amendment Act 1980, I think that it is appropriate that I should grant the application. The applicant has been ah invalid pensioner for many years and there does not appear to be any suggestion that he currently has any assets. In the circumstances there appears to be no point in refusing to grant the application. The applicant's past , unsatisfactory conduct has incurred the displeasure of the Court which has been marked by the refusal of his two prior applictions. I think the time has now arrived when it is, appropriate to order that the applicant be discharged from bankruptcy and I so order. > I certify that this and she four (4) preceding pases are a wre copy of the Reasons for Judgrent nere21n nof his Honour Kr. Justice Mori.ng. Soocaate Dated: is/2/85