Campbell v Metway Leasing Ltd [2002] FCAFC 394

Campbell v Metway Leasing Ltd [2002] FCAFC 394

Subsections 60(2) and (3) of the Bankruptcy Act 1966 (Cth) are within the bankruptcy and insolvency power in s 51(xvii) of the Constitution. Provisions regulating the extent to which litigation may be continued by or against a bankrupt lie at the heart of the bankruptcy power and provide for the continuance or termination of such litigation; they do not impermissibly interfere with the State courts before whom bankrupt persons are parties. Because valid Commonwealth laws are binding on State courts, judges and people under s 5 of the Commonwealth of Australia Constitution Act 1900 (Cth), the impugned provisions are not invalid as an infringement of implied State immunity or as an...

Jurisdiction
Australia
Judgment Date
05 December 2002
Procedural Posture
Appeal From a Single Judge of the Federal Court of Australia Concerning Constitutional Validity of Provisions of the Bankruptcy Act 1966 (cth) / Full Court Appeal
Outcome
Appeal dismissed with costs.
Legal Topics
['validity of Bankruptcy Act 1966 (cth) S 60(2), S 60(3) and S 60(4)' 'implied Immunity of State Instrumentalities' 'state Courts and Commonwealth Legislative Power' 'stay and Abandonment of Proceedings on Bankruptcy' 'standing of Bankrupts to Prosecute Appeals']
['constitutional Law' 'bankruptcy'] ['validity of Bankruptcy Act 1966 (cth) S 60(2), S 60(3) and S 60(4)' 'implied Immunity of State Instrumentalities' 'state Courts and Commonwealth Legislative Power' 'stay and Abandonment of Proceedings on Bankruptcy' 'standing of Bankrupts to Prosecute Appeals']

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Procedural Posture

Appeal From a Single Judge of the Federal Court of Australia Concerning Constitutional Validity of Provisions of the Bankruptcy Act 1966 (cth) / Full Court Appeal

Legal Issues

  1. 1 ['Whether subs 60(2), (3) and (4) of the Bankruptcy Act 1966 (Cth), insofar as they purport to cause a stay and abandonment of proceedings before the Supreme Court of New South Wales, are beyond Commonwealth legislative power or invalid.' 'Whether subs 60(2) and (3) impermissibly interfere with the judicial power, practice or procedure of a State court.' "Whether subs 60(2) and (3) infringe the implied immunity of State instrumentalities by impairing State courts' capacity to function." 'Whether the appellants had standing to prosecute the appeals in the New South Wales Court of Appeal after bankruptcy.']

Ratio Decidendi

Subsections 60(2) and (3) of the Bankruptcy Act 1966 (Cth) are within the bankruptcy and insolvency power in s 51(xvii) of the Constitution. Provisions regulating the extent to which litigation may be continued by or against a bankrupt lie at the heart of the bankruptcy power and provide for the continuance or termination of such litigation; they do not impermissibly interfere with the State courts before whom bankrupt persons are parties. Because valid Commonwealth laws are binding on State courts, judges and people under s 5 of the Commonwealth of Australia Constitution Act 1900 (Cth), the impugned provisions are not invalid as an infringement of implied State immunity or as an...

Court Disposition

Appeal dismissed with costs.

Orders

  • ['The appeal be dismissed.' "The appellants pay the respondent's costs of the appeal, to be taxed if not agreed."]