McInerney, in the matter of Ghougassian v Ghougassian

In the matter of Ghougassian v Ghougassian, the Federal Court considered applications for sequestration orders against Michael and Daniel Ghougassian. The applicants, who were creditors of the respondents, sought sequestration orders based on non-compliance with bankruptcy notices issued by the Official Receiver. The court had to determine whether the bankruptcy notices were valid and if the applicants were the proper petitioning creditors. Additionally, the court examined whether there was sufficient cause to prevent the making of sequestration orders.

The court found that the bankruptcy notices were invalid for several reasons. Firstly, the judgments underlying the notices were subject to a stay, rendering the notices ineffective. Secondly, the named creditor on the notices was not the judgment creditor. Thirdly, a judgment was erroneously issued. Fourthly, a bankruptcy notice was issued in relation to judgments owed to multiple creditors. Fifthly, the bankruptcy notices overstated the amount of any debt owing, and the creditor’s address on the notices was defective. The court concluded that the applicants were not the proper petitioning creditors and that there was no sufficient cause to prevent the making of sequestration orders. Consequently, the court made sequestration orders against Michael Ghougassian's estate and ordered that the applicants' costs be taxed and paid from the bankrupt estate.

The court further noted that the date of bankruptcy was 1 October 2019 and that a consent to act as trustee had been filed. Entry of orders was dealt with in accordance with Rule 39.32 of the Federal Court Rules 2011.