B Pty Ltd v Sutton (No.2)

B Pty Ltd (the applicant) sought an order under section 52(3) of the *Bankruptcy Act 1966* (Cth) to continue a stay of proceedings under a sequestration order made on 13 November 2020, pending an appeal against that order. Sutton (the respondent) opposed this application. The matter came before Judge Manousaridis in the Federal Circuit Court of Australia.

The primary legal issues before the Court were whether the respondent had arguable prospects of succeeding in setting aside the sequestration order on appeal, and whether the balance of convenience favoured the making of the requested stay order.

Judge Manousaridis dismissed the application for a stay. The Court found that the respondent had not demonstrated arguable grounds for setting aside the sequestration order on appeal. Consequently, the balance of convenience did not favour granting the stay. The Court ordered that the respondent pay the applicant's costs of the stay application, to be paid out of the respondent's bankrupt estate, with liberty to apply for any variation of this order. Furthermore, access to documents filed in the proceeding was restricted to the parties, their legal representatives, and the trustees in bankruptcy, unless leave of the Court was obtained.