Howard, Harkin and Kelly Trading as Owen Hodge Lawyers v Faltas

Howard, Harkin and Kelly trading as Owen Hodge Lawyers (the applicants) sought a sequestration order against Faltas (the respondent) in the Federal Court of Australia. The application was made pursuant to section 27 of the *Bankruptcy Act 1966* (Cth). The core of the dispute revolved around whether there was sufficient cause to prevent the making of the sequestration order.

The primary legal issue before the Court was whether a sequestration order ought to be made against the respondent's estate. This required the Court to consider if the respondent had demonstrated sufficient cause why such an order should not be made, as contemplated by the *Bankruptcy Act*.

The Court found that no sufficient cause had been shown by the respondent to justify refusing the sequestration order. Applying the principles of the *Bankruptcy Act*, the Court determined that the criteria for making a sequestration order were met. Consequently, the Court made the sequestration order against the respondent's estate.