Metropolitan Demolitions Pty Ltd v Gialouris, Jim & Ors [1998] FCA 936

FEDERAL COURT OF AUSTRALIA BANKRUPTCY – deed of arrangement - joint debtors – whether one debtor had separate liabilities to creditors – whether debtors omitted material particulars or included incorrect material particulars in their statements of affairs – whether deed of arrangement void – whether sequestration order should be made. Bankruptcy Act 1966 (Cth), ss 5, 82, 187, 187A, 188, 188A, 189, 190, 194, 195, 196, 204, 213, 216, 221, 222, 224. Bankruptcy Regulations, reg 10.02, Sch 6, Pt 1. T Irlicht, Assignments, Arrangements and Compositions by Debtors (2nd ed 1986). Re Forbes; Ex parte Industrial Acceptance Corporation Ltd (1974) 24 FLR 87 (SA Insolv Ct/White J), cited. Gee v Schmutter (1971) 123 CLR 503, cited. Re Williams; Ex parte Official Trustee in Bankruptcy (1990) 26 FCR 191 (Hill J), followed. Musolino v Sidiropolous (1991) 101 ALR 235 (FCA/FC), cited. Re Cufari; Ex parte Commissioner of Taxation v Huppatz (1992) 34 FCR 544 (von Doussa J), applied. Chiragakis v Deputy Commissioner of Taxation (1986) 68 ALR 527 (FCA/FC), cited. Augustyn v Putnam (1988) 83 ALR 514 (FCA/FC), cited. NZI Capital Corporation Ltd v Lancaster (1991) 30 FCR 441 (Foster J), cited. Re Morris; Ex parte Adams (1980) 48 FLR 341 (FCA/C.A. Sweeney J), followed. METROPOLITAN DEMOLITIONS PTY LIMITED V JIM GIALOURIS AND SOPHIE GIALOURIS & ANOR NG 7833 OF 1997 SACKVILLE J SYDNEY 7 August, 1998

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NG 7833 of 1997

BETWEEN: METROPOLITAN DEMOLITIONS PTY LIMITED

Applicant

AND: JIM GIALOURIS and SOPHIE GIALOURIS

First Respondents

KEVIN RICHARD SHIRLAW

Second Respondent

JUDGE: SACKVILLE J

DATE OF ORDER: 7 AUGUST, 1998

WHERE MADE: SYDNEY

THE COURT: 1. DECLARES, pursuant to s 222(4) of the Bankruptcy Act 1966 (Cth), that the deed of arrangement executed on 20 March 1998 is void. 2. MAKES sequestration orders against the estates of each of the debtors, Jim Gialouris and Sophie Gialouris. 3. ORDERS that the applicant's costs be paid out of the estates of the debtors. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.