Cain Bankrupt v Whyte [1933] HCA 6

Cain Bankrupt v Whyte [1933] HCA 6

The presence of an order deferring payment of a judgment debt under financial emergency legislation does not itself constitute 'other sufficient cause' to refuse the making of a sequestration order under the Bankruptcy Act. The debt remains provable as a liquidated sum payable at a certain future time.

Parties
Appellant / Debtor: Mrs. Cain; Respondent / Petitioner / Creditor: Mrs. Whyte
Jurisdiction
Australia
Procedural Posture
Appeal From Bankruptcy Proceedings / Final Appellate Judgment
Outcome
Appeal dismissed
Legal Topics
Sequestration Order, Financial Emergency Legislation, Deferral of Judgment Debt Payment, Proof of Petitioning Creditor's Debt

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Parties

Mrs. Cain

Appellant / Debtor

Mrs. Whyte

Respondent / Petitioner / Creditor

Procedural Posture

Appeal From Bankruptcy Proceedings / Final Appellate Judgment

  1. 1 Whether the deferral of payment of a judgment debt under financial emergency legislation constitutes 'other sufficient cause' for refusing a sequestration order under the Bankruptcy Act
  2. 2 Whether a stayed debt remains a provable debt at a certain future time under sec. 55 (1) (b) of the Bankruptcy Act

Ratio Decidendi

The presence of an order deferring payment of a judgment debt under financial emergency legislation does not itself constitute 'other sufficient cause' to refuse the making of a sequestration order under the Bankruptcy Act. The debt remains provable as a liquidated sum payable at a certain future time.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Sequestration order affirmed