BBC Hardware Ltd v Boutros, Charlie [1998] FCA 409

BBC Hardware Ltd v Boutros, Charlie [1998] FCA 409

Because the debt underlying the act of bankruptcy had been paid before the affidavit supporting the sequestration order, the applicant creditor's records were in error, the trustee and supporting creditor did not object subject to costs, and no other creditor had come forward, it was a proper exercise of the Court's discretion to annul the sequestration order while leaving the petition listed for further consideration.

Jurisdiction
Australia
Judgment Date
31 March 1998
Procedural Posture
Bankruptcy Application Concerning Sequestration Order / Application to Annul or Set Aside Sequestration Order
Outcome
Sequestration order annulled by consent; petition listed in the Registrar's list; no order as to costs of the application; applicant creditor to pay trustee's costs.
Legal Topics
['annulment of Sequestration Order' 'petitioning Creditor' 'supporting Creditor' 'costs']
['bankruptcy' 'civil Procedure'] ['annulment of Sequestration Order' 'petitioning Creditor' 'supporting Creditor' 'costs']

Case Brief

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Procedural Posture

Bankruptcy Application Concerning Sequestration Order / Application to Annul or Set Aside Sequestration Order

Legal Issues

  1. 1 ['Whether the sequestration order made on 4 March 1998 should be annulled or set aside where the debt underlying the act of bankruptcy had been paid before the affidavit supporting the order.' "Whether the creditor's petition should be dismissed or remain on foot pending a payment timetable agreed between the respondent debtor and the supporting creditor." 'What costs orders should be made on the application.']

Ratio Decidendi

Because the debt underlying the act of bankruptcy had been paid before the affidavit supporting the sequestration order, the applicant creditor's records were in error, the trustee and supporting creditor did not object subject to costs, and no other creditor had come forward, it was a proper exercise of the Court's discretion to annul the sequestration order while leaving the petition listed for further consideration.

Court Disposition

Sequestration order annulled by consent; petition listed in the Registrar's list; no order as to costs of the application; applicant creditor to pay trustee's costs.

Orders

  • ['The sequestration order made on 4 March 1998 is annulled.' "The petition be listed in the Registrar's list for 15 April 1998." 'There will be no order as to the costs of the application.' "The applicant creditor is to pay the Trustee's costs assessed in the sum of $500.00."]