Re Browne, B.G. v. Ex parte Spirulina Products Company Australia Pty Ltd [1985] FCA 524

Re Browne, B.G. v. Ex parte Spirulina Products Company Australia Pty Ltd [1985] FCA 524

The bankruptcy notice was invalid because it did not unambiguously tell the debtor what had to be done to avoid committing an act of bankruptcy: the amount stated in figures was correct but the amount stated in words was $99 less, the discrepancy was not disregarded as de minimis, was not cured by s.306, and was not resolved by the supporting judgment or other available circumstances.

Jurisdiction
Australia
Judgment Date
14 October 1985
Procedural Posture
Bankruptcy Petition for Sequestration / Uncontested Petition
Outcome
The petition was dismissed.
Legal Topics
['validity of Bankruptcy Notice' 'formal Defect or Irregularity' 'discrepancy Between Words and Figures Stating Debt' 's.306 of the Bankruptcy Act']
['bankruptcy'] ['validity of Bankruptcy Notice' 'formal Defect or Irregularity' 'discrepancy Between Words and Figures Stating Debt' 's.306 of the Bankruptcy Act']

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Procedural Posture

Bankruptcy Petition for Sequestration / Uncontested Petition

Legal Issues

  1. 1 ['Whether a bankruptcy notice was invalid where the amount claimed was stated differently in words and figures.' 'Whether the discrepancy could be treated as a formal defect or irregularity under s.306(1) of the Bankruptcy Act.' 'Whether the maxim de minimis non curat lex applied to the discrepancy.' 'Whether the judgment supporting the bankruptcy notice saved the notice from invalidity.']

Ratio Decidendi

The bankruptcy notice was invalid because it did not unambiguously tell the debtor what had to be done to avoid committing an act of bankruptcy: the amount stated in figures was correct but the amount stated in words was $99 less, the discrepancy was not disregarded as de minimis, was not cured by s.306, and was not resolved by the supporting judgment or other available circumstances.

Court Disposition

The petition was dismissed.

Orders

  • ['The petition be dismissed.']