Johnson, K & D. [1987] FCA 57

Johnson, K & D. [1987] FCA 57

The sequestration orders ought not to have been made because the applicants were, at the time, able to pay their debts, and this fact was not before the court due to their failure to appear. The court exercised its discretion under s.154(1)(a) to annul the bankruptcies, considering the circumstances including the male applicant's injury.

Parties
Applicant: Kenneth Johnson; Applicant: Dianne Johnson
Jurisdiction
Australia
Judgment Date
05 February 1987
Procedural Posture
Bankruptcy Annulment Application / Application for Annulment of Sequestration Order
Outcome
bankruptcy annulled
Legal Topics
Annulment of Bankruptcy, Sequestration Order, Exercise of Discretion
Bankruptcy Annulment of Bankruptcy Sequestration Order Exercise of Discretion

Case Brief

Summary, issues, holding and outcome

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Parties

Kenneth Johnson

Applicant

Dianne Johnson

Applicant

Procedural Posture

Bankruptcy Annulment Application / Application for Annulment of Sequestration Order

Legal Issues

  1. 1 Whether the sequestration order ought not to have been made under s.154(1)(a) of the Bankruptcy Act 1966
  2. 2 Whether facts existing at the time of the sequestration order but not before the court justify annulment
  3. 3 Whether the court's discretion should be exercised to annul the bankruptcies

Ratio Decidendi

The sequestration orders ought not to have been made because the applicants were, at the time, able to pay their debts, and this fact was not before the court due to their failure to appear. The court exercised its discretion under s.154(1)(a) to annul the bankruptcies, considering the circumstances including the male applicant's injury.

Court Disposition

bankruptcy annulled

Orders

  • The bankruptcies brought about by the sequestration order made in the case of each of the applicants on 24 November 1986 be annulled.