Black v Mills (No.4)

In *Black v Mills (No.4)*, heard in the Federal Court of Australia, the applicant, Mr Black, sought to have the respondent, Ms Mills, declared bankrupt based on a creditor's petition. Ms Mills opposed the petition, arguing that she was solvent and that the debt underpinning the petition was disputed.

The primary legal issue before the Court was whether to grant the creditor's petition given Ms Mills' contentions of solvency and dispute over the debt. The Court was required to assess the evidence presented by both parties regarding Ms Mills' financial position and the validity of the debt claimed by Mr Black.

Judge Driver dismissed the creditor's petition. The Court found that Ms Mills had provided sufficient evidence of her solvency. Furthermore, the Court noted that Ms Mills had paid a portion of the debt that was indisputable, and that the remaining disputed amount was relatively small. In light of these findings, the Court concluded that it was not appropriate to make a sequestration order against Ms Mills.