Jones v Official RECEIVER (No 3)

In *Jones v Official Receiver (No 3)*, the applicant, Mr. Jones, sought to set aside a bankruptcy notice issued against him by the Official Receiver. The dispute centred on whether the debt underpinning the bankruptcy notice was a liquidated sum due and payable.

The primary legal issue before the court was whether the debt claimed by the Official Receiver was sufficiently certain and presently owing to support the issuance of a bankruptcy notice. This involved determining if the applicant had a valid defence or counterclaim that would prevent the debt from being considered liquidated and payable.

Judge Smith reasoned that a bankruptcy notice can only be founded on a judgment debt or a debt that is liquidated and presently payable. The court found that the applicant had raised a substantial and bona fide counterclaim that went to the root of the debt. This counterclaim, if successful, would extinguish or significantly reduce the amount claimed by the Official Receiver. Consequently, the debt was not considered liquidated and presently payable for the purposes of a bankruptcy notice.

The court ordered that the bankruptcy notice be set aside.