Canberra Times (ACT : 1926 - 1995), Thursday 11 September 1952, page 4


HARTNETT CAR TO APPROACH

LOCAL CREDITORS

MELBOURNE, Wednesday.

The producers of the Hartnett motor car were granted permission by the Supreme Court today to ask Australian creditors to consider deferring payment of all the company's accounts I

The creditors will meet in'

Melbourne on October 17 to consider this action pending settlement of a dispute between the company Hartnett Motor Co Ltd

and the Commonwealth Engineering Co Ltd

Hartnett's, alleging breach of contract is claiming more than £100 000 from Commonwealth

Engineering Company at Gran-, ville in which the Commonwealth Government holds the majority

of shares

Hartnett's claims that Its business is now at a standstill as a

result of the alleged breach

An affidavit before Mr Justice Coppel to-day stated that Hart-nett's was formed in August,

1949 to produce a low-priced car

Contracts for the manufacture of the component parts were let out to a number of Australian fruits

The Commonwealth Engineer-ing Company undertook to manufacture and supply 2,000 sets of body and chassis panels and gave Hartnett's a guarantee of performance in the form of a £14,400 security issued by the Commonwealth Bank. The

other Australian firms fulfilled their contracts for the supply of major components, but Commonwealth Engine e 11 n g

[failed to supply the panels repre1 senting 300 cars, all of which had

been sold to Hartnett distributors

Last March, Hartnett's claimed the £14,400 guarantee Commonwealth Engineering then obtained an interim injunction in the NSW Supreme Court restrain-ing Hartnett's from appropriating the money without submitting the dispute to Arbitration

The affadavit said, that Hart-nett's liabilities on August 3 last i totalled £63,779