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 2Commonwealth 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 citedGABOR 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
ApplicantsAND:
PAUL A PATTISON and
COMMONWEALTH BANK OF AUSTRALIA
RespondentsJUDGE:
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
ApplicantsAND:
PAUL A PATTISON and
COMMONWEALTH BANK OF AUSTRALIA
Respondents
JUDGE:
FINKELSTEIN J
DATE:
28 JUNE 1999
PLACE:
MELBOURNE
REASONS FOR JUDGMENT
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”).
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.
The order was made in…
- AGLC
- Horvath v Pattison [1999] FCA 924
- Case
- [1999] FCA 924
- Decision Date
CaseChat Overview and Summary
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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