Krpina v Arrow Sun Australia Pty Ltd

The appeal in Krpina v Arrow Sun Australia Pty Ltd was brought by the appellant, Krpina, against the decision of the Federal Circuit Court to dismiss his application for review of a sequestration order. The sequestration order had been made on the basis of a bankruptcy notice issued by Arrow Sun, the respondent and petitioning creditor, which cited the appellant's failure to comply with the notice as the act of bankruptcy. The appellant contested the validity of the bankruptcy notice and the underlying debt, and argued that he was solvent. The appellant also raised procedural fairness concerns and criticisms of the conduct of the trustees. The primary issue for the court was whether the Federal Circuit Court had erred in dismissing the appellant's application for review.

The court found no merit in the appellant's arguments concerning the validity of the bankruptcy notice and the underlying debt. The court held that the appellant's complaints about the default judgment did not provide a basis for setting it aside, particularly as the appellant had not challenged the judgment in a timely manner. The court further noted that the amount of the judgment debt met the statutory requirements for a bankruptcy notice and creditor's petition. Regarding solvency, the court found that the appellant had not discharged the onus of proving that he was solvent. The court also dismissed the appellant's claims of procedural unfairness and misfeasance by the trustees.

The appeal was dismissed by the court, which found no error in the decision of the Federal Circuit Court. The court ordered that the respondents' costs of and incidental to the appeal be treated as costs and expenses in the administration of the appellant's estate.