Mailau v Kennards Hire Pty Ltd (No.2)

In *Mailau v Kennards Hire Pty Ltd (No.2)*, the Federal Court of Australia considered an application by the former bankrupt for an order annulling their bankruptcy, and the creditor's opposition to this application. The dispute centred on whether the former bankrupt should be ordered to pay the creditor's costs of the annulment proceedings, and whether the former bankrupt had misconducted themselves in a manner that necessitated the hearing.

The primary legal issue before the Court was whether the former bankrupt's conduct warranted an order for costs against them on a party and party basis, despite the successful annulment of the bankruptcy. A secondary issue, though not central to the final orders, concerned the Court's power to fix a trustee's remuneration.

Judge Manousaridis found that the former bankrupt's conduct had indeed necessitated the hearing of the annulment claim, and that this conduct justified an order for costs against them. The Court reasoned that the former bankrupt had not acted with sufficient candour or diligence, leading to a situation where the creditor was compelled to oppose the annulment application. Consequently, the Court ordered the former bankrupt to pay the creditor's costs on a party and party basis.