Craven v Ready Flowers Pty Ltd [2015] FCA 297

Craven v Ready Flowers Pty Ltd [2015] FCA 297

The allegation of fraud or perversion of justice in obtaining the costs order was not established on the evidence. The Court accepted the respondent’s director’s evidence, rejected the alleged fraud or omission, and found the debt was real. The parliamentary reply statement was inadmissible by reason of parliamentary privilege. There being no basis to go behind the costs judgment, a sequestration order was made.

Jurisdiction
Australia
Judgment Date
05 March 2015
Procedural Posture
Bankruptcy and Civil Application / Judgment After Joint Hearing of Creditor's Petition and Application to Set Aside Costs Judgment
Outcome
Application dismissed; sequestration order made against Gordon Craven's estate; costs orders as taxed to be paid by applicant/respondent.
Legal Topics
['extension of Time to Appeal' 'fraud and Perversion of Justice' 'parliamentary Privilege' 'sequestration Order' 'costs Order as Basis of Debt' 'going Behind a Judgment in Bankruptcy']
['bankruptcy and Insolvency' 'constitutional Law'] ['extension of Time to Appeal' 'fraud and Perversion of Justice' 'parliamentary Privilege' 'sequestration Order' 'costs Order as Basis of Debt' 'going Behind a Judgment in Bankruptcy']

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Procedural Posture

Bankruptcy and Civil Application / Judgment After Joint Hearing of Creditor's Petition and Application to Set Aside Costs Judgment

Legal Issues

  1. 1 ['Whether the costs order supporting the bankruptcy notice and creditor’s petition was procured by fraud such that the Court should exercise its discretion not to accept it as proof of debt under s 52(2) Bankruptcy Act 1966 (Cth) and not make a sequestration order.' 'Whether there was a deliberate omission or false evidence by the director of the respondent before the Federal Magistrates Court and fraud on the Federal Court.' 'Whether the evidence (parliamentary reply statement) sought by the applicant is inadmissible under s 16 of the Parliamentary Privileges Act 1987 (Cth).']

Ratio Decidendi

The allegation of fraud or perversion of justice in obtaining the costs order was not established on the evidence. The Court accepted the respondent’s director’s evidence, rejected the alleged fraud or omission, and found the debt was real. The parliamentary reply statement was inadmissible by reason of parliamentary privilege. There being no basis to go behind the costs judgment, a sequestration order was made.

Court Disposition

Application dismissed; sequestration order made against Gordon Craven's estate; costs orders as taxed to be paid by applicant/respondent.

Orders

  • ['The application be dismissed.' "The applicant pay the respondent's costs of the proceedings." 'A sequestration order be made against the estate of Gordon James Craven.' "The applicant creditor's costs be taxed and paid from the estate of the respondent debtor in accordance with the Bankruptcy Act 1966 (Cth)."]