Grundy v Wattyl Australia Limited

REASONS FOR JUDGMENT 1 This proceeding is one of a series involving the appellant ("Mr Grundy"), the first respondent ("Wattyl"), and the second respondent ("Mr Pascoe"). Mr Pascoe is the trustee of Mr Grundy's bankrupt estate. Mr Grundy has appeared in person at all hearings which have taken place. The genesis of Mr Grundy's bankruptcy was the conduct by him of business as a painting contractor. He purchased paint and painting equipment from Wattyl, including in particular a spray paint unit. That unit was so deficient, Mr Grundy has asserted for some time, as to have caused Mr Grundy to lose about 3 "major jobs", for which the spray paint unit had been acquired, and to have caused damage to his reputation as a tradesman. 2 As a consequence of the asserted deterioration of his business, and the distress thereby occasioned to him, Mr Grundy claimed further that he became hospitalised with a heart condition, and received no financial income, other than social welfare, for about 3 months, until he was able to secure a technological teaching position at the Mirriwinni Gardens Aboriginal Academy. I should add that Mr Grundy has provided no documentary evidence of the losses of income and earnings to which he has made unspecific reference. 3 On the application of Wattyl, Mr Grundy was made bankrupt on 13 September 2001 by sequestration order of Registrar Tesoriero, based on a debt of $8,495.05 claimed by Wattyl. An appeal against the order for his bankruptcy was dismissed by Federal Magistrate Raphael on 13 March 2002, and his Worship affirmed the sequestration order on that day. Thereafter Mr Grundy lodged notice of appeal against the decision of Raphael FM to a single judge of this Court, pursuant to s 24 of the Federal Court of Australia Act 1976 (Cth). 4 On 2 April 2002, Mr Grundy commenced proceedings in the Court, by notice of motion filed on 2 April 2002, for an order '[t]hat the sale of 2A Mount Vincent Road Mount Vincent by the Trustee in bankruptcy be stayed pending the outcome of the appeal and that I be given all rights and access to property". A number of affidavits were filed by Mr Grundy in support of the notice of motion. On 14 May 2002, Moore J made the following orders in those proceedings (Grundy v Wattyl Australia [2002] FCA 615): "1. Until further order the proceedings under the sequestration order made on 13 September 2001 in relation to the estate of Mr Phillip Grundy be stayed insofar as it permitted or required the sale of 2a Mount Vincent Road, Mount Vincent. 2. Until further order the Trustee be restrained from selling the property. 3. Until further order and upon Mr Phillip Grundy giving an undertaking to vacate the property within 7 days of any judgment dismissing his appeal from the judgment of the Federal Magistrate of 13 March 2002, the Trustee permit Mr Phillip Grundy to enter and occupy the property until judgment in the appeal. 4. Cost of the stay application be costs in the appeal." 5 On 29 April 2002, Mr Grundy opened what may be described as a "second front" in his litigious response to Wattyl's bankruptcy proceedings brought against him, by making application for an order, pursuant to s 153B of the Bankruptcy Act 1966 (Cth) ("the Act"), for the annulment of his bankruptcy. The annulment application came on for hearing before me on 21 August 2002. 6 The claims for final relief made by the applicant in his application for annulment are reproduced below: "1. That the bankruptcy be annulled in full New Evidence being presented to the Court. 2. That all costs related to the said bankruptcy be borne by the Respondent Wattyl Australia and/or their legal representative Lamich & Co Solicitors. 3. They (sic) Mr Phillip Grundy and Mr William Lawrence Grundy Senior be compensated by the respondent/s for damages as detailed in Mr Phillip Grundy's Affidavit to the amount of $150,000.00 being for stress, anxiety, depression, loss of lifestyle, loss of employment, loss of income. Denial of basic human rights." 7 The claims for interlocutory relief made by the applicant in the same application are next reproduced below: "1. That Mr Phillip Grundy and Mr William Lawrence Grundy be given immediate access to Mr Phillip Grundy's property (home) at 29 Mt Vincent Road, Mt Vincent NSW 2323. 2. That all Mr Grundy's assets be freed by the Trustee Sims Lockwood immediately allowing Mr Grundy to make suitable arrangements to pay all creditors without further cost to Mr Phillip Grundy or his representatives." 8 The evidence placed before me at the hearing on 21 August 2002 comprised essentially the content of the following affidavits: