Policy Nominees Pty Ltd (ACN 008 803 781)(Provisional Liquidator Appointed) & Anor v McDougall, Stuart Stanley & Anor [1997] FCA 1067

FEDERAL COURT OF AUSTRALIA BANKRUPTCY - deed of arrangement - whether trustee's report to creditors expressed requisite opinion whether or not it would be in the interests of creditors to deal under Pt X with the debtor's affairs in the manner proposed - differences between debtor's proposal and deed into which meeting of creditors resolved debtor should enter - whether deed thereby precluded from complying substantially with Pt X - whether deed in fact a composition because capable of taking effect immediately to release debtor from his debts - term of deed allowing creditors to resolve at a subsequent meeting that debtor should be released and discharged from all provable debts - whether inconsistent with s 234 of Bankruptcy Act - whether severable - effect of severance clause in deed - debtor's statement of affairs - obligation pursuant to r 78 of Bankruptcy Rules to disclose interest under a trust - whether complied with - whether non-disclosure of a material particular - whether non-disclosure of a charge account debt adverted to in trustee's report material.

Bankruptcy Act 1966, ss 187, 188, 189A, 204, 222, 234, 237A Bankruptcy Rules, r 78 Re Burlock; Deputy Commissioner of Taxation v Burlock (1994) 49 FCR 522 distinguished Gee v Schmutter (1971) 123 CLR 503 applied Re Peters (1960) 18 ABC 213 applied Re Marshall; Marshall v Marshall and Luckins (1973) 2 ALR 172 distinguished Re Segal; Lensworth Finance Ltd v Segal and Ward (1975) 9 ALR 154 applied Re Morris; Ex parte Adams (1980) 48 FLR 341 distinguished POLICY NOMINEES PTY LTD (ACN 008 803 781) (PROVISIONAL LIQUIDATOR APPOINTED) and MARTIN ALAN THOMAS v STUART STANLEY MCDOUGALL and RICHARD MORROW VG 147 of 1997 RYAN, WHITLAM and MARSHALL JJ MELBOURNE 16 OCTOBER 1997

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY VG 147 of 1997