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