Coulton v Knobloch

In *Coulton v Knobloch*, the applicant sought to review a sequestration order made by the Registrar. The sequestration order was based on a bankruptcy notice which, in turn, was founded upon a default judgment obtained in the Local Court. The applicant contended that the originating process in the Local Court proceedings had not been properly served, thereby rendering the default judgment a nullity.

The central legal issue before the court was whether the applicant had established a sufficient basis to set aside the sequestration order. This required the court to determine whether the default judgment obtained in the Local Court was a valid and enforceable debt, or whether there was in truth and reality no real debt behind the judgment due to the alleged defective service of the originating process.

Judge Barnes dismissed the application to review the sequestration order. His Honour found that the applicant had failed to demonstrate that the originating process had not been served. The evidence presented did not establish that the service was defective in a manner that would render the Local Court judgment a nullity. Consequently, the bankruptcy notice founded on that judgment remained valid, and the sequestration order was upheld.