Jovanovski v Official Receiver, Australian Financial Security Authority

In the Federal Court of Australia, Judge A Kelly considered the case of *Jovanovski v Official Receiver, Australian Financial Security Authority*. The dispute concerned an application by Mr. Jovanovski to set aside a bankruptcy notice issued by the Official Receiver, acting on behalf of the Australian Financial Security Authority (AFSA). Mr. Jovanovski sought to challenge the validity of the debt underlying the bankruptcy notice, arguing it was not a liquidated sum.

The primary legal issue before the Court was whether the debt, arising from an order for costs made in previous proceedings, constituted a liquidated sum for the purposes of issuing a bankruptcy notice under the *Bankruptcy Act 1966* (Cth). Specifically, the Court had to determine if the costs order, which was quantified by a registrar's certificate, was sufficiently certain and ascertainable to support the issuance of such a notice.

Judge A Kelly reasoned that a costs order, once quantified by a registrar's certificate, becomes a liquidated debt. The Court applied the principle that a debt is liquidated if its amount is either fixed or is capable of being ascertained by a simple arithmetical process. The registrar's certificate provided the necessary certainty, making the debt a liquidated sum. Consequently, the Court found that the bankruptcy notice was validly issued.