Re Pollack, R.J. Ex parte The Trustee of the Estate of the Bankrupt [1988] FCA 31

JUDGMENT No. 31. 1LBSK

NOT FOR DISTRIBUTION

IN THE FEDERAL COURT OF AUSTRALIA ) GENERAL DIVISION ) BANKRUPTCY DISTRICT OF THE ) ) )

STATE OF NEW SOUTH WALES AND THE AUSTRALIAN CAPITAL TERRITORY

No. W339 of 1986

RE: ROBERT JOHN POLLACK

EX PARTE: THE TRUSTEE OF THE ESTATE

CORAM: GUMMOW J. DATE: 25 FEBRUARY 1988 PLACE: SYDNEY

REASONS FOR JUDGMENT

This is an application by the trustee of the estate of

the bankrupt for a declaration that the sum of $54,015.55, representing payments made by the bankrupt to the respondent, Mr. Perry, are void against the applicant by reason

of the operation of s.122 of the Bankruptcy Act 1966 ("the

Act").

A sequestration order was made against the bankrupt on 7 April 1986 on the petition of the Deputy Commissioner of Taxation. The Petition had been presented on 20 December 1985, and had been served on the bankrupt on 5 February 1986. The six month period for the purposes of sub-s. 122 (1) (a) of the Act thus commenced on 20 June 1985.

On 24 February 1986, the bankrupt had signed an authority under s.188 of the Act and a meeting of his creditors

had been held on 20 March 1986. In his affidavit Verifying the

2. Statement of Affairs sworn 20 March 1986, the bankrupt had deposed to unsecured creditors of $193,741.05, secured creditors of $41,431.39 and had asserted an equity in real estate of $10,784.31 and other property valued at $6,596.44.

The Petition relied upon an act of bankruptcy committed on 6 August 1986 by non-compliance with a Bankruptcy Notice served on 23 July 1985. The Bankruptcy Notice was based on a judgment for $86,368.85 recovered by the Deputy Commissioner of Taxation in the District Court of New South Wales on 25 March 1985.

The respondent to the present application carried on business, from about 1979, under the style "Woodville Security & Investigation Services" or "Woodville Security". The business involved the provision of security services such as patrols, alarms and guards, and was conducted in the Parramatta-Liverpool area of Sydney. In March 1985, the respondent had approximately 60 clients. He first met the bankrupt in about 1976. At that time the bankrupt was the controller of a company conducting business under the style "Winston Watching & Security". By 1985, the bankrupt was carrying on, under the name "ITV Security", a business generally similar in character to that of the respondent.