Bankrupt’s continued liability for costs

A court has refused parties’ request to retrospectively make an order for costs to avoid the consequences of a time limitation in bankruptcy. An order by a court that a person pay costs is a provable debt in that person’s bankruptcy only if the order is made before the date of the bankruptcy, even if […]

Winding up a company for a $1,000 debt

” … the issue of proportionality between the amount of indebtedness and the deployment of an application to wind up a debtor company is one for the creditor and liquidator. Absent the prospect of an abuse of the court’s processes, the issue of proportionality is not a relevant consideration for the court in the determination […]

Murrays Legal closes on 31 December 2019 and reopens on 1 January 2020

As to which, readers will be aware that “[t]he beginning of a day is nothing but the end of the day before, and the end of the day is nothing but the beginning of the next …”: Prowse v McIntyre [1961] HCA 789; and “[t]hus all beginnings of days and all ends of days fall […]

Disclaimer of litigation funding agreement

While a trustee was ready to continue the bankrupt’s litigation claim, he was not willing to use the bankrupt’s litigation funder with its premium of over 80% and control over the proceedings.  The court allowed the trustee to disclaim the agreement. Before his bankruptcy, Mr Tonner had secured litigation funding with a funder – GT […]

Equitable fraud on creditors – bankruptcy composition set aside

Among several grounds for setting aside a composition between a bankrupt and his creditors under the Bankruptcy Act was ‘equitable fraud’. It had emerged in evidence that the bankrupt, Mr Zappia, ‘had made representations to a number of creditors that if and when he rehabilitated himself he would be aiming to repay the money he […]

Boensch v Pascoe – High Court’s decision

The seven member bench of the High Court which heard Boensch v Pascoe on 11 October 2019 has unanimously dismissed Boensch’s appeal [Boensch v Pascoe [2019] HCA 49] finding that on the making of the sequestration order, the debtor’s right of indemnity in the Rydalmere property held on trust by him for his family vested […]

Halifax – no reason why the NZ High Court should not physically sit in Australia …

The on-going matter of the Halifax liquidation came before Justice Jacqueline Gleeson in the Federal Court of Australia (FCA) on 18 December 2019, and jointly, before Justice Geoffrey Venning of the High Court of New Zealand (NZHC), by video-link. The intermingled nature of the assets and liabilities of Halifax AU and Halifax NZ has prompted […]

Major corporate collapses and the public interest – British Steel and more

The collapses in the UK of socially and economically important enterprises – British Steel, Carillion Constructions and Thomas Cook are current examples – raise many public interest issues that are managed by the joint conduct of the liquidations by the government Official Receiver and private insolvency firms. The insolvency of a business raises broader issues […]

Halifax – a cross-border insolvency

A joint hearing of Australian and New Zealand courts is one way to deal with an intermingled cross-Tasman insolvency, through a letter of request process, but other options might have been available through the Model Law. “Classic candidate for cross-border cooperation” On 22 August 2019, the Federal Court decided in principle that it could send […]