Jackson, J.W. & Anor v. Nat. West Finance Australia Ltd [1987] FCA 384

Jackson, J.W. & Anor v. Nat. West Finance Australia Ltd [1987] FCA 384

National Westminster Finance Australia Limited is entitled to be paid its costs, limited to $2,000, as petitioning creditor's costs under s.109(1)(a) of the Bankruptcy Act, despite not obtaining a sequestration order, because the failure was due to factors outside its control and it acted without certainty of bankruptcy ensuing. Sterling Industries Limited is not entitled to costs as its purpose failed due to the High Court's order.

Jurisdiction
Australia
Judgment Date
06 July 1987
Procedural Posture
Bankruptcy Petition / Costs Order After Judgment
Outcome
Costs order granted in favour of National Westminster Finance Australia Limited; no order for costs in favour of Sterling Industries Limited
Legal Topics
["petitioning Creditor's Costs" 'priority of Costs' 'disposition of Costs']
['bankruptcy Law'] ["petitioning Creditor's Costs" 'priority of Costs' 'disposition of Costs']

Case Brief

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Procedural Posture

Bankruptcy Petition / Costs Order After Judgment

Legal Issues

  1. 1 ["Whether National Westminster Finance Australia Limited is entitled to petitioning creditor's costs after failing to secure a sequestration order" 'Whether Sterling Industries Limited is entitled to costs in this proceeding']

Ratio Decidendi

National Westminster Finance Australia Limited is entitled to be paid its costs, limited to $2,000, as petitioning creditor's costs under s.109(1)(a) of the Bankruptcy Act, despite not obtaining a sequestration order, because the failure was due to factors outside its control and it acted without certainty of bankruptcy ensuing. Sterling Industries Limited is not entitled to costs as its purpose failed due to the High Court's order.

Court Disposition

Costs order granted in favour of National Westminster Finance Australia Limited; no order for costs in favour of Sterling Industries Limited

Orders

  • ["National Westminster Finance Australia Limited's costs, limited to $2,000, to be paid as petitioning creditor's costs under s.109(1)(a) of the Bankruptcy Act with priority as if petition had succeeded." 'No order as to costs for Sterling Industries Limited (Receivers and Managers Appointed).']