Vacuum Oil Company Pty Ltd v Wiltshire [1945] HCA 37

OF AUSTRALIA.

(HIGH COURT OF AUSTRALIA.]

OIL COMPANY eae APPELLANT ;

AND

. . F < e ResPoNnDENT.

ON APPEAL FROM THE COURT OF BANKRUPTCY. DISTRICT OF SOUTH AUSTRALIA.

and Administrators—Business of testator carried on by executor—Insolvency estate—Order of administration of assets—Order of priority of creditor of ased—Whether assent to carrying on business established—Bankruptcy Act 1945 (No. 37 of 1924—No. 42 of 1945), 8. 155.

g a company which had been pressing the deceased for payment. 'This y continued to trade with the executor on short terms and continued press for reduction of the liability of the estate. In 1936, as a result of a

y was present, an attorney was appointed to wind up the business. | the following month an order was made for the administration of the estate bankruptey. The evidence showed that the company knew that there risk that an early liquidation of the business might well result in the d's debts not being paid in full. Particulars of the financial position

ded to the company would, if carefully examined, have shown that the ness was in difficulties. A letter from the executor to the company stating had been carrying on the business in the interests of the creditors and } beneficiaries remained unanswered. The evidence also showed that the

OJ. and Dixon J. (Starke and McTiernan JJ. contra) were of opinion 'the conduct of the company did not establish an active affirmative ) the business being carried on for the benefit of Sreditora and that

Ren eee 324,335 De ALE. "4g, a * 39376 C97Y) 1 wreck, 22).

H.C. of A 1945, "WW

ADELAIDE,

Sept. 24, 25.

Sypney, Dec. 10.

Latham C.J., Starke, Dixon and McTiernan JJ.

Vacuum Om. Co. Pry. Lrp. v. WILTSHIRE.

HIGH COURT

respect of debts incurred after the expiration of the time to which the cam on of the business was authorized by the order of the court.