Goldberg, Re C.A. Law Society of NSW, Ex parte The [1988] FCA 301

Goldberg, Re C.A. Law Society of NSW, Ex parte The [1988] FCA 301

A debt owing to the Law Society under s.65Q(2) of the Legal Practitioners Act 1898 (NSW) for expenses paid to a receiver is a liquidated sum due at law and is sufficient to support a bankruptcy petition without the need for prior judgment.

Parties
Debtor: Charles Alroy Goldberg; Petitioning Creditor: The Law Society of New South Wales
Jurisdiction
Australia
Judgment Date
06 June 1988
Procedural Posture
Bankruptcy Petition / Interlocutory Hearing; Adjournment of Petition
Outcome
Further hearing adjourned; costs reserved.
Legal Topics
Sequestration Order, Receiver's Fees, Legal Practitioners Act Debt Recovery, Affidavit of Solvency, Court's Directions on Affidavits
Bankruptcy Law Legal Profession Regulation Sequestration Order Receiver's Fees Legal Practitioners Act Debt Recovery Affidavit of Solvency Court's Directions on Affidavits

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Parties

Charles Alroy Goldberg

Debtor

The Law Society of New South Wales

Petitioning Creditor

Procedural Posture

Bankruptcy Petition / Interlocutory Hearing; Adjournment of Petition

Legal Issues

  1. 1 Whether fees paid by the Law Society to a receiver under the Legal Practitioners Act 1898 (NSW) constitute a debt for the purposes of a bankruptcy petition.
  2. 2 Whether judgment is required before such fees can be relied upon as a debt in bankruptcy proceedings.
  3. 3 Whether the debtor may rely on an affidavit of solvency not filed in accordance with Court directions.

Ratio Decidendi

A debt owing to the Law Society under s.65Q(2) of the Legal Practitioners Act 1898 (NSW) for expenses paid to a receiver is a liquidated sum due at law and is sufficient to support a bankruptcy petition without the need for prior judgment.

Court Disposition

Further hearing adjourned; costs reserved.

Orders

  • The further hearing of the petition be adjourned until 24 June 1988 at 9.30 am.
  • Costs be reserved.