EJ Industries Ltd v Fernandez

EJ Industries Ltd applied to the Supreme Court of Victoria for a review of a sequestration order made by a registrar against Mr Fernandez. The dispute concerned the validity of the sequestration order and whether it should be set aside.

The court was required to determine whether it should go behind the judgment that led to the sequestration order, whether Mr Fernandez was solvent, and if there were any other reasons to set aside or annul the bankruptcy.

Judge Riley dismissed the application for review. The court reasoned that it should not go behind the judgment in this context, and that the evidence did not establish that Mr Fernandez was solvent. Consequently, there were no grounds to set aside or annul the bankruptcy. The court ordered that the applicant petitioning creditor's costs for the application be paid from the bankrupt estate, and that the trustee's costs of the application also be paid from the bankrupt estate.