Manzi v Smith
132 CLR 6717 ALR 685
(Judgment by: JACOBS J)
Between: MANZI
And: SMITH
Judges:
BARWICH CJ
MASON J
JACOBS J
Subject References:
Corporations
Liquidation
Preference
Accounting records
Evidence
Accounting records
Sufficiency
Legislative References:
Companies Act 1961 (WA) - s 293
Bankruptcy Act 1966 (Cth) - s 122
Judgment date: 5 September 1975
PERTH
Judgment by:
JACOBS J
JACOBS J. I agree that the appeal should be allowed. The entries made through the journal and the books of the company did nothing except alter the manner in which the internal accounts of the company were expressed. If there were mutual credits, mutual debts and mutual dealings before 22nd February 1974, there were the same credits, debits and dealings after that date. On the one hand there was no agreement at the time of the various dealings or subsequently that only the balance on accounts should be owed from day to day; on the other hand there was no agreement that by the alterations in the expression of the accounts made on 22nd February 1974 there should be any alteration in legal rights.
How far there were mutual debits, credits and dealings to which the provisions of s. 86 of the Bankruptcy Act might be applied, it is not for this court on this appeal to say.