Jagatramka v Coeclerici Asia (PTE) Limited (No.2)

This matter concerned an application by Coeclerici Asia (PTE) Limited for a bankruptcy notice to be set aside, which had been issued against Mr Jagatramka. The bankruptcy notice was based on an award made in arbitration proceedings, which had previously been recognised and ordered to be enforced by Foster J of the Federal Court of Australia. Foster J had ordered judgment against Gujarat Coke and Mr Jagatramka for specific amounts in USD and GBP, representing the principal sum of the award and pre-judgment interest, as well as costs awarded in the arbitration and pre-judgment interest on those costs. Foster J also made orders appointing receivers over shares held by Mr Jagatramka in a company now known as Wollongong Coal Limited, in aid of enforcing the judgment. An appeal by Gujarat Coke and Mr Jagatramka against these orders was dismissed by the Full Federal Court.

The primary legal issue before the court was whether the bankruptcy notice, which demanded payment in AUD, was valid. This involved determining whether the conversion of the foreign currency judgment amounts into Australian dollars, as stated in the bankruptcy notice, was accurate and properly calculated. Specifically, the court had to consider the stated amount of $9,818,546.78, described as the "[a]mount as per the attached final judgment/s or final order/s (note A)", and the calculations presented in notes A1 and A2 of the bankruptcy notice, which involved multiplying the USD and GBP judgment amounts by specified telegraphic transfer rates.

The court found that there was a manifest error in the calculation of the total amount demanded in the bankruptcy notice. While the notice purported to convert the USD and GBP judgment amounts into AUD, the sum of the converted amounts as presented in notes A1 and A2 did not equate to the total amount stated in note A. The court noted that the amount of $9,659,149.44 in note A1, which represented the converted USD judgment, appeared to include a lump sum costs order made by the Full Federal Court. However, the court also observed that the sum of the figures in notes A1 and A2 did not add up to the total amount claimed in note A. Despite these discrepancies, the court noted that Mr Jagatramka had made no submissions regarding the $9,818,546.78 figure.

Given the manifest error in the calculation of the amount demanded in the bankruptcy notice, the court ordered that the bankruptcy notice be set aside.