Bechrose Pty Ltd v Jefferson (Trustee) [1999] FCA 1153

FEDERAL COURT OF AUSTRALIA

Bechrose Pty Ltd v Jefferson (Trustee) [1999] FCA 1153

BANKRUPTCY - review of trustee ruling to assign nominal value to vote of applicant at proposed creditor's meeting held under s 73 - applicant is the assignee of mortgage to a financier from a company that bought property from the bankrupt in a transaction arguably void under ss 120 or 121 the Bankruptcy Act 1966 (Cth) and assignee of a personal guarantee by bankrupt to the financier - applicant not at arms' length from the bankrupt - effect of s 64ZB(8) - approach to the valuation of debt on an assigned guarantee when value of consideration for the assignment not clear - effect of related mortgage on valuation of guarantee

Bankruptcy Act 1869 (Imp), s 31 Bankruptcy Act 1966 (Cth), ss 27, 64, 64D, 64Z, 64ZA, 64ZB, 73, 76A, 82, 120, 121, 178, Div 1 of Pt VI Land Title Act 1994 (Qld)

Re Dingle; Westpac Banking Corp v Worrell (1993) 47 FCR 478 cited Re Ebner; Ebner v Official Trustee in Bankruptcy (1999) 161 ALR 557 cited Official Trustee in Bankruptcy v Alvaro (1996) 66 FCR 372 cited Official Trustee in Bankruptcy v Baker (Full Court, Federal Court of Australia, 5 August 1995, unreported) cited Re Dingle; Ex parte Westpac Banking Corporation v Worrell (Drummond J, 16 August 1993, unreported) cited Staples v Milner (1998) 83 FCR 203 cited Pyramid Building Society (In liq) v Terry (1997) 189 CLR 176 cited Ex parte Llynvi Coal and Iron Company. In re Hide (1871) LR 7 Ch 28 cited Hardy v Fothergill (1888) 13 App Cas 351 cited In re Blakeley, Ex parte Aachener Disconto Gesellschaft (1892) 9 Morr 173 cited In re Houlder [1929] 1 Ch 205 cited Re Amalgamated Investment and Property Co Ltd [1984] 3 All ER 272 cited Re Hunter; ex parte Bank of New South Wales [1982] Qd R 131 cited Re Burton; Burton v Wily (1994) 122 ALR 399 cited