Horvath v Pattison

Case [1999] FCA 924


FEDERAL COURT OF AUSTRALIA

Horvath v Pattison [1999] FCA 924

PRACTICE AND PROCEDURE – vexatious litigant – application for leave to commence a proceeding – whether leave should be granted – whether order prevents the hearing of an ex parte application – jurisdiction to enjoin the commencement of a proceeding

Bankruptcy Act 1966 (Cth) – ss 104, 153B
Federal Court Rules – O 21 r 2

Commonwealth Trading Bank v Inglis (1974) 131 CLR 311 cited
Grepe v Loam [1888] 37 ChD 168 followed
Tanning Research Laboratories Inc v O'Brien (1990) 1 ACSR 510 cited

GABOR HORVATH & AGOTA HORVATH V PAUL A PATTISON & COMMONWEALTH BANK OF AUSTRALIA

V 323 OF 1999

JUDGE:        FINKELSTEIN J
PLACE:         MELBOURNE
DATE:            28 JUNE 1999


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

V 323 OF 1999

BETWEEN:

GABOR HORVATH and
AGOTA HORVATH
Applicants

AND:

PAUL A PATTISON and
COMMONWEALTH BANK OF AUSTRALIA
Respondents

JUDGE:

FINKELSTEIN J

DATE OF ORDER:

28 JUNE 1999

WHERE MADE:

MELBOURNE

THE COURT ORDERS THAT:

1.Mr and Mrs Horvath do not institute an application for an order to annul their bankruptcies upon the ground that the Commonwealth Bank of Australia was not entitled to present the petition upon which the sequestration order was made.

2.Grant to Mr and Mrs Horvath leave to make an application under s 104(3) of the Bankruptcy Act for extending the time within which to make an application under s 104(1) to review the decision of the trustee in bankruptcy to admit the proof of debt lodged by the Commonwealth Bank of Australia, but limited to the ground that the trustee should have deducted from the amount of the debt the value of any security held by that bank.

3.        Otherwise, the application be dismissed.

Note:    Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

V 323 OF 1999

BETWEEN:

GABOR HORVATH and
AGOTA HORVATH
Applicants

AND:

PAUL A PATTISON and
COMMONWEALTH BANK OF AUSTRALIA
Respondents

JUDGE:

FINKELSTEIN J

DATE:

28 JUNE 1999

PLACE:

MELBOURNE

REASONS FOR JUDGMENT

  1. Gabor Horvath and his wife Agota Horvath, each of them a bankrupt, apply ex parte for leave to bring an application to annul their respective bankruptcies under s 153B of the Bankruptcy Act 1966 (Cth) and, in the alternative, to review the decision of their trustee in bankruptcy, Mr Paul A Pattison, to admit a proof of debt lodged by the Commonwealth Bank of Australia (“the Bank”).

  2. Mr and Mrs Horvath ask for leave in consequence of an order made by Weinberg J on 27 April 1999.  On that day, on the application of Mr Pattison and the Bank, his Honour ordered that Mr and Mrs Horvath “shall not, without the leave of the Court, institute in [the] Court any proceedings against Mr Paul A Pattison, their trustee in bankruptcy, or against the Commonwealth Bank of Australia” other than an appeal against that order. 

  3. The order was made in…

Details
AGLC
Horvath v Pattison [1999] FCA 924
Case
[1999] FCA 924
Decision Date

CaseChat Overview and Summary

In Horvath v Pattison, the appellants, Mr and Mrs Horvath, sought to challenge the validity of their bankruptcies on the basis that the Commonwealth Bank of Australia was not entitled to present the petition that led to their sequestration. The High Court of Australia was tasked with determining whether the Horvaths could institute such an application and whether they should be granted leave to apply for an extension of time to challenge the trustee's decision regarding the proof of debt submitted by the Commonwealth Bank of Australia.

The primary legal issue before the court was whether the Horvaths could legally pursue an application to annul their bankruptcies on the grounds that the Commonwealth Bank of Australia lacked the standing to present the petition. Additionally, the court needed to decide if the Horvaths should be granted leave to apply for an extension of time to review the trustee's decision to admit the proof of debt, specifically on the basis that the bank should have deducted the value of any security it held from the debt amount.

The court held that the Horvaths could not institute an application to annul their bankruptcies on the ground that the Commonwealth Bank of Australia was not entitled to present the petition. However, it found that the Horvaths should be granted leave to apply for an extension of time to challenge the trustee's decision to admit the proof of debt, but this application was limited to the specific ground that the trustee should have deducted the value of any security held by the bank from the debt amount. Consequently, the court dismissed the application in all other respects.

Orders

Orders of the court

1. Mr and Mrs Horvath do not institute an application for an order to annul their bankruptcies upon the ground that the Commonwealth Bank of Australia was not entitled to present the petition upon which the sequestration order was made.

2. Grant to Mr and Mrs Horvath leave to make an application under s 104(3) of the Bankruptcy Act for extending the time within which to make an application under s 104(1) to review the decision of the trustee in bankruptcy to admit the proof of debt lodged by the Commonwealth Bank of Australia, but limited to the ground that the trustee should have deducted from the amount of the debt the value of any security held by that bank.

3. Otherwise, the application be dismissed.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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