Morris Finance Ltd v Brown

Morris Finance Ltd appealed to the Court of Appeal of New South Wales against a decision of the Equity Division concerning leave to commence proceedings against a bankrupt. The dispute arose from an application by Morris Finance Ltd for leave under section 58 of the *Bankruptcy Act 1966* (Cth) to commence proceedings against Mr Brown, who was a bankrupt. The Equity Division had determined a separate question regarding the jurisdiction to grant such leave.

The Court of Appeal was required to determine whether an appeal lay to it from the decision of the Equity Division. Specifically, the court considered whether section 7(5) of the *Jurisdiction of Courts (Cross-vesting) Act 1987* (Cth), which prohibits the institution and determination of certain matters other than in a federal court, applied to the present appeal. The central question was whether the appeal involved a matter for determination arising under the *Bankruptcy Act*.

The Court of Appeal reasoned that section 7(5) of the *Jurisdiction of Courts (Cross-vesting) Act* applied to the appeal, as the underlying matter concerned the exercise of jurisdiction conferred by the *Bankruptcy Act*. Consequently, the Court of Appeal lacked jurisdiction to hear the appeal. The court held that the prohibition in section 7(5) meant that appeals from decisions made by state courts in the exercise of federal jurisdiction conferred by the *Bankruptcy Act* could only be heard by a federal court.

Accordingly, the summons seeking leave to appeal was dismissed for want of jurisdiction. Morris Finance Ltd was ordered to pay the costs of Mr Free, the third respondent, in relation to the summons for leave to appeal and the motion.