McKellar v Container Terminal Management Services Ltd (No 4) [2002] FCA 185

McKellar v Container Terminal Management Services Ltd (No 4) [2002] FCA 185

By operation of s 60(2) of the Bankruptcy Act 1966 (Cth), the bankruptcy of the second applicant operates to stay the entire proceedings, including those brought by the first applicant, until the trustee makes an election in writing to prosecute or discontinue the action.

Jurisdiction
Australia
Judgment Date
05 March 2002
Procedural Posture
Interlocutory Application / Application by Respondents to Stay Proceedings and for Security for Costs; Costs Orders
Outcome
Applicants ordered to pay respondents' costs of and incidental to the hearing; respondents' notices of motion dismissed; entire proceeding stayed by operation of s 60(2) of the Bankruptcy Act 1966.
Legal Topics
['stay of Proceedings' 'security for Costs' 'bankrupt Party in Litigation' 'effect of S 60 of Bankruptcy Act 1966']
['bankruptcy' 'civil Procedure'] ['stay of Proceedings' 'security for Costs' 'bankrupt Party in Litigation' 'effect of S 60 of Bankruptcy Act 1966']

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Procedural Posture

Interlocutory Application / Application by Respondents to Stay Proceedings and for Security for Costs; Costs Orders

Legal Issues

  1. 1 ['Whether s 60(2) of the Bankruptcy Act 1966 (Cth) stays actions for all parties if one applicant is an undischarged bankrupt' "Whether Mr Murray's claim fell within the personal injury exception in s 60(4)" "Entitlement to costs relating to respondents' notices of motion"]

Ratio Decidendi

By operation of s 60(2) of the Bankruptcy Act 1966 (Cth), the bankruptcy of the second applicant operates to stay the entire proceedings, including those brought by the first applicant, until the trustee makes an election in writing to prosecute or discontinue the action.

Court Disposition

Applicants ordered to pay respondents' costs of and incidental to the hearing; respondents' notices of motion dismissed; entire proceeding stayed by operation of s 60(2) of the Bankruptcy Act 1966.

Orders

  • ['Each notice of motion filed on behalf of the respondents on 18 January 2002 be dismissed.' "The applicants pay the respondents' costs of and incidental to the hearing on 1 February 2002, including any costs associated with the filing of the respondents' notices of motion."]