Esanda Finance Corp Ltd v Velissaris

Esanda Finance Corp Ltd brought an application for a sequestration order against the estate of Constantinos Velissaris in the Supreme Court of New South Wales. The dispute centred around an outstanding debt owed to Esanda by Velissaris, which had become insolvent and unable to meet his financial obligations. The court was tasked with determining whether the statutory requirements for sequestration were satisfied, specifically focusing on whether the debtor had committed an act of bankruptcy under the Bankruptcy Act 1966 (Cth). The primary legal issue was whether Velissaris had, by failing to pay a statutory demand, committed an act of bankruptcy. The court needed to examine the validity of the statutory demand, the service of the demand, and the debtor's response, if any, to the demand.

The court considered the evidence presented and concluded that the statutory demand was properly issued and served. Velissaris did not respond to the demand within the required 21 days, thereby committing an act of bankruptcy. The court held that the statutory requirements for sequestration were met, and the respondent's motion to set aside the sequestration order was dismissed. The court further found that the costs of the respondent’s motion should be included in the costs on the petition. The court granted the sequestration order against the estate of Constantinos Velissaris and directed that the costs of and incidental to the petition, including reserved costs, be taxed and paid according to statute.