Council of the Law Society of the Australian Capital Territory v Ezekiel-Hart, in the matter of Ezekiel-Hart

In the matter of Emmanuel Tam Ezekiel-Hart, the Council of the Law Society of the Australian Capital Territory brought a creditor's petition against the Debtor seeking a sequestration order. The Debtor had failed to comply with a bankruptcy notice, which constituted an act of bankruptcy. The court was required to determine whether the conditions for a sequestration order were met and whether any grounds for opposing the order had merit. Specifically, the court had to decide if the Debtor could demonstrate that he could pay his debts or if there was another sufficient cause to prevent the making of a sequestration order.

The court found that the Debtor had indeed committed an act of bankruptcy by failing to comply with the bankruptcy notice. The conditions for a creditor’s petition were satisfied as the Debtor owed a sum that met the statutory minimum, the debt was payable, and the act of bankruptcy occurred within the required timeframe. The court rejected the Debtor's evidence that he could pay his debts or that there was another sufficient cause to oppose the sequestration order. The court held that the Debtor's appeal against the decision not to set aside the bankruptcy notice had low prospects of success, and further adjournment would not be in the interests of justice or efficiency. Consequently, the court granted leave to amend the creditor's petition to correct a formal defect and made the sequestration order against the Debtor's estate. The court also ordered that the creditors' costs be paid from the Debtor's estate and directed that a copy of the order be provided to the Official Receiver.

The final orders included granting leave to amend the creditor’s petition, sequestrating the Debtor's estate, directing payment of the creditors' costs from the Debtor's estate, and requiring the creditors to provide a copy of the order to the Official Receiver. The date of the act of bankruptcy was noted as 26 May 2023.