In the matter of St Gregory's Armenian School Inc (in liq) (No 2)

In the matter of St Gregory's Armenian School Inc (in liq) (No 2), the applicants challenged the distribution of surplus property of the incorporated association in liquidation. The applicants, who subsequently became bankrupts, sought to contest the distribution of the surplus funds by the liquidator, as per the Associations Incorporation Act 1984 (NSW). The dispute involved the interpretation of the Bankruptcy Act 1966 (Cth) and the Uniform Civil Procedure Rules 2005 (NSW) in the context of the applicants' bankruptcy.

The legal issues the court had to address were whether the Bankruptcy Act 1966 (Cth) section 60(2) imposed a stay on the applicants' interlocutory processes and if section 60(2) was subject to an implied limitation that required a necessary connection to the bankrupt's estate. Additionally, the court had to determine whether the applicants suffered a wrong that warranted a declaration under section 60(4) of the Bankruptcy Act 1966 (Cth).

The court found that the applicants' interlocutory processes were stayed under section 60(2) of the Bankruptcy Act 1966 (Cth). However, the court also considered whether there was an implied limitation that required a necessary connection between the action and the bankrupt's estate. The court dismissed the application to remove the applicants as parties and join a new party to the interlocutory processes, as per Uniform Civil Procedure Rules 2005 (NSW) rule 6.24. The court ruled that no wrong was done to the bankrupts, thus, no declaration was made.

The court dismissed the applicants' application, affirming the stay on their interlocutory processes and declining to remove them as parties or join a new party. The decision underscores the importance of the necessary connection between the action and the bankrupt's estate when considering interlocutory processes under the Bankruptcy Act 1966 (Cth).