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[1985] FCA 440
General information, not legal advice.
Federal Court of Australia
1985-06-24
Toohey J
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GENERAL DIVISION BANKRUPTCY DISTRICT OF THE STATE OF WESTERN AUSTRALIA
This is an application for a discharge com JER ae in respect of a sequestration order made on 1 September 1983. In the ordinary course 5.149 of the Bankruptcy Act 1966 would effect a discharge on 1 September 1986. The question then is - is there anything 1n the circumstances of this case to warrant the granting of a discharge earlier than the statutory period or perhaps, put another way, 15 there any reason why the application should not he
The matter is the subject of objection by one of the creditors but, as Mr D'Angelo of counsel acknowledges, there is
not a great deal he can add to what has already been said. The
abjection i based on the amount of deficiency in the estate and the small contribution made by the bankrupt. Both of those propositions are unarguable as facts. It 1s a question of what
weight should he attached to them. Mr. Corboy has pointed out,
and there does not seem to be anv reason why I should not accept
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the argument, that the bankruptcy of Mr. Redmond was not brought about by conduct on his behalf of a particularly reprehensible nature. One does wonder why, given his apparent circumstances at the time, directors' guarantees were thought to have any particular advantage to those who were dealing with the companies with which he was connected. His creditors are very substantial, although not many in number. But the major creditors have not been heard to object to the application for discharge. It is apparent that neither they nor the objecting creditor is likely to receive anything from the continued bankruptcy of Mr. Redmond and I suppose the most one can hope for is that the Official
Receiver's costs will be met, if not fully, at least to some
In the circumstances and having regard to Mr. Redmond's present employment and what I take to be the position - that a discharge from bankruptcy is likely, if mot to further his position with the company, at least to stabilise 1t - it seems to me that I ought to make a order for discharge. A question arises as to whether I should attach any conditions to the order. I am not obliged to do s0 by reason of 5.150(5) because those matters have not been established, indeed they have not heen asserted. Nevertheless I have power under sub-s.(9) either to refuse to make an order of discharge, or make an order but suspend its operation
purpose would be some prepayment of the amount which Mr. Redmond
might be expected to contribute under the present arrangement to
pay 640 a month and that has been quantified by Mr. Corboy at
What I propose to do and what I dois as follows: I Make an order of discharge. I suspend the order for one month and require as a condition of discharge that the bankrupt pay to the Official Receiver the sum of $560. I certify that this and the two preceding
pages are a true copy of the Ex Tempore Reasons for Judgment herein of his Honour