McIntosh v Shashoua Petitioner [1931] HCA 56

McIntosh v Shashoua Petitioner [1931] HCA 56

The appeal was dismissed because the purported debt arising under the guarantees was not proved, but the assignment of the judgment debt was sufficient to support the petition: either because objections as to notice and joinder were not properly raised below or, on the merits, because an equitable assignee of a legal debt may petition for bankruptcy without joining the assignor, and acquiring a debt to found a bankruptcy petition is not per se 'sufficient cause' to deny the sequestration order.

Parties
Appellant: McIntosh; Respondent: Shashoua
Jurisdiction
Australia
Procedural Posture
Appeal / On Appeal From the Court of Bankruptcy
Outcome
appeal dismissed
Legal Topics
Assignment of Debts, Proof of Debt, Petitioning Creditor, Equitable Assignment, Sufficient Cause in Bankruptcy Petitions
Bankruptcy Assignment of Debts Proof of Debt Petitioning Creditor Equitable Assignment Sufficient Cause in Bankruptcy Petitions

Case Brief

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Parties

McIntosh

Appellant

Shashoua

Respondent

Procedural Posture

Appeal / On Appeal From the Court of Bankruptcy

Legal Issues

  1. 1 Whether the petitioning creditor had a sufficient debt to sustain a petition for sequestration under the Bankruptcy Act 1924-1930
  2. 2 Whether an equitable assignee of a judgment debt can present a bankruptcy petition without joining the assignor
  3. 3 Whether purchase of a debt for the purpose of founding a bankruptcy petition constitutes sufficient cause to deny relief under section 56(3)(b) of the Bankruptcy Act

Ratio Decidendi

The appeal was dismissed because the purported debt arising under the guarantees was not proved, but the assignment of the judgment debt was sufficient to support the petition: either because objections as to notice and joinder were not properly raised below or, on the merits, because an equitable assignee of a legal debt may petition for bankruptcy without joining the assignor, and acquiring a debt to found a bankruptcy petition is not per se 'sufficient cause' to deny the sequestration order.

Court Disposition

appeal dismissed

Orders

  • The appeal is dismissed.