FEDERAL COURT OF AUSTRALIA

BANKRUPTCY - order obtained by petitioning creditor - whether court has sufficient reason to go behind judgment - matters raised speculative - sequestration order made

PAUL JAMES LOVE -v- PYRAMID BUILDING SOCIETY (IN LIQUIDATION)

NO. VG 7101 OF 1997

THE COURT ORDERS THAT:

1.         A sequestration order be made against the estate of the debtor Paul James Love.

2.         The petitioning creditors costs, of and incidental to the petition, including reserve costs, be taxed and paid in accordance with the statute.

Note:                Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

REASONS FOR JUDGMENT

The judgment debt on which the bankruptcy notice was found, was for a very large amount, $1,014,682.19.  It was the result of a summary judgment proceedings in the Supreme Court.  The debtor was represented and contested the matter and raised unsuccessfully in the Supreme Court the matters on which he sought to rely today.  I am satisfied I would not be justified in exercising the discretion to go behind that judgment.  While one obviously cannot avoid sympathy for Mr Love and his wife having been one of many casualties of the Pyramid Building Society disaster, the fact remains that the petitioning creditor is owed this debt and there has not been sufficient reason for this Court to go behind it.

The complaints made are in essence speculative; that had different decisions been made as to the tenanting of the properties or the marketing of them, a higher price might have been received.  But having regard to the overall amount of the debt it seems unlikely in the extreme that the matters relied on would have made any practical difference.  So there will be a sequestration order for costs in accordance with the statute, including reserved costs.

I certify that this page and the preceding

page is a true copy of the of the Reasons

for Judgment herein of the Honourable

Justice Heerey

Associate:

Dated: