Garrett v Gel Custodians Pty Ltd

The applicant, an undischarged bankrupt, sought leave to appeal an order for possession granted to the respondent, a secured creditor. The dispute concerned the applicant's standing to pursue an appeal against the possession order. The matter came before the Court of Appeal of New South Wales.

The primary legal issue before the Court was whether the applicant, as an undischarged bankrupt, possessed the necessary standing to appeal the possession order made against him. This involved considering the implications of bankruptcy on a party's ability to continue litigation and the potential impact on the rights of the trustee in bankruptcy.

The Court determined that an undischarged bankrupt generally lacks the standing to pursue an appeal without the consent of their trustee in bankruptcy. This principle stems from the fact that upon bankruptcy, the bankrupt's property vests in the trustee, and the trustee becomes responsible for managing and litigating matters concerning that property. The applicant had not obtained the consent of his trustee to continue the appeal. Consequently, the Court found that the applicant did not have the requisite standing.

The application for leave to appeal was dismissed with costs.