McMahon v Permanent Custodians Ltd

McMahon v Permanent Custodians Ltd concerned an application for the review of a Registrar’s decision to make sequestration orders against the applicant, Mr. McMahon. The applicant sought to appeal a decision not to set aside consent orders that established the debt upon which the sequestration order was based. The matter came before Judge Raphael in the Supreme Court of New South Wales.

The primary legal issues before the Court were whether to grant an adjournment of the hearing of Mr. McMahon's application, given that an affidavit correcting the debt owed had been recently served, and Mr. McMahon claimed he was not ready to proceed. Further, the Court had to determine whether to set aside the sequestration order, considering the applicant's claim that a third party could pay the debts, and the prospects of success of his appeal against the consent orders, which had been discussed by the High Court in related proceedings.

Judge Raphael refused the adjournment, finding that the applicant had not demonstrated a lack of readiness to proceed, particularly as the affidavit served was to correct an existing debt. Regarding the sequestration order, the Court noted that while the applicant claimed a third party could pay the debts, no evidence of this third party's capacity to do so had been presented. Furthermore, the Court considered the High Court's previous observations regarding the prospects of success of the applicant's appeal against the consent orders, which indicated a low likelihood of success. Consequently, the Court found no basis to set aside the sequestration order.