Bank of WA Ltd v Loiterton

The case of Bank of WA Ltd v Loiterton involved the bank pursuing a bankruptcy petition against Loiterton. The dispute centred on the validity of a bankruptcy notice issued by the bank and the liability for interest on the judgment debt. The matter was heard by the Supreme Court. The central legal issues revolved around the interpretation of certain sections of the relevant legislation and whether these sections provided a valid source of liability for interest on the judgment debt. Specifically, the court had to determine if the commencement of a new section (s.101) on 15 August 2005 had the effect of invalidating the previous source of liability for interest, s.85, for the period prior to that date. Additionally, the court needed to consider whether there was an express savings provision that would allow for the continuation of the liability for interest under s.85 despite its repeal.

The court examined the language of the new section and whether it was intended to be retrospective and exclusive in relation to the liability for interest accruing before its commencement. It also considered the presumptions against retrospectivity and the applicability of the general savings provisions under the Interpretation Act 1987. Ultimately, the court concluded that the enactment of s.101 did not reveal an intention to exclude the presumption that amendments do not affect liabilities acquired under the repealed Act. Furthermore, it found that there was no express savings provision that would allow for the continuation of liability for interest under s.85 after its repeal. Therefore, the claim to interest "pursuant to s.85" for the period after its repeal was invalid.

In light of these findings, the court ordered that the hearing of the bankruptcy petition would be resumed at a later date, and reserved the costs related to the hearing on 9 March 2006.