NEW SOUTH WALES DISTRICT REGISTRY GENERAL DIVISION Judge making order: Burchett J. Where made: Sydney Date of order: 18 February 1986 IN THE FEDERAL COURT OF AUSTRALIA No. 448 of 1983 www wvwnw iB OSEPH HEDRLIN Bankrupt MINUTE OF ORDER OF THE COURT THE COURT ORDERS THAT: (1) (2) The application for annulment of the bankruptcy be dismissed. The bankrupt pay the costs of the trustee and the petitioning creditor. Settlement and entry of orders is dealt with in Rule of the Bankruptcy Rules. Saha" re eS gua ae ey wy Serie oe fees OT STEERS A P,P 84, Since then, there have been at least half a dozen applications for annulment, and at least one further appeal to the Full Court. The present application for annulment was said to be ona ground new and different from grounds previously taken. It was said that a sequestration order ought not to have been made, because the debtor was, in fact, able to pay his debts. Mr. Hedrlin presumably relies on the decision in Re Sarina (1980) 32 A.L.R. 596. With engaging frankness, he declares that he had no intention of paying the petitioning creditor's debt, and does not intend ever to pay it, but that he was able to pay and that his ability to pay provided a defence. In support of this defence, he has referred to his employment, although he declined to accept that it could accurately be described by that name. Rather, he preferred to say that he was engaged in "helping" his wife in her business, and indeed that he helped in certain other businesses as well. He says that by these means, though not working regular hours, he was in receipt of income. He also referred to three particular properties, that is, pieces of real estate, one at Wentworth Falls which was in his wife's name, one at Coffs Harbour which he says was in the joint names of his wife and himself, and one at Surry Hills which was in his wife's name. 4. items he did say that the figures were approximate. The statement of affairs showed the amount owing to unsecured creditors, according to part 2, which was a list of unsecured creditors furnishing the names of some eight different creditors. The total amount wags shown as $261,000 in the summary. Likewise "in the summary, the amount by which the secured debts due to . creditors exceed the value of the securities, according to part 3, was shown as $230,000. Liabilities were totalled at $491,000 by reason of the addition of those figures. In the same summary, assets were shown at, firstly, property specified in part 5, $2. (Part 5 is the section which sets out details of property, most of the details in the form being completed "nil", and the details for cash in hand being completed at $2, which was also the total.) Other property was shown at nil. The amount by which the secured debts due to creditors were less than the value of the securities, according to part 3, was shown in the summary at $20,000. Book debts were shown in the summary at $1,000,000, and the total in the summary was shown at $1,020,002. The figure of $1,000,000 calls for some explanation. That figure in the detailed schedule in part 6 was shown as a debt due to the estate from the Socilalist Republic of Czechoslovakia, and under column 5S, "Amount Likely to be Received", no amount was shown, and the word "never" was inserted _in what appears to be the same handwriting, which Mr. Hedrlin identified as his own. He did not suggest that he was not the author of that word also. Indeed, in cross-examination, Mr. eter oe ee > - . =) . fae er ay I do not consider, particularly having regard to the contents of the statement of affairs, that I should accept the present assertions that he was, at the relevant time, able to pay his debts. That being so, I must hold that he has not made out the ground which was pressed before me. ' vt a ns we? ad "Edo not think "the Human Rights Commission Act 1981 in any way affects the operation of the Bankruptcy Act, or raises any ground, which calls for any further discussion in this judgment. For these reasons the application is dismissed and I order the bankrupt to pay the costs of the trustee and the petitioning creditor. I certify that this and the preceding five (5) pages are a true copy of the Reasons for Judgment herein of his Honour Mr. Justice Burchett. . Associate Dated: 18 February, 1986. | Dae matte ernie am ompeten auechtdenete Paes eh A See fenee Sore a tet ne ne te am tes