Nomchong v The Owners - Strata Plan No.6766

The applicant, Nomchong, sought a review of the Registrar's decision to dismiss an application to set aside a bankruptcy notice. The respondent was The Owners - Strata Plan No.6766. The dispute concerned whether the applicant had substantial reasons to question the validity of the judgment debt upon which the bankruptcy notice was founded, or whether the applicant possessed a counter-claim, set-off, or cross-demand against the judgment creditor that was equal to or exceeded the amount of the judgment debt.

The primary legal issues before the court were whether the applicant had demonstrated substantial reasons for questioning the judgment debt, and whether the applicant had a counter-claim, set-off, or cross-demand sufficient to meet the threshold for setting aside the bankruptcy notice. These issues required the court to consider the nature and strength of the applicant's asserted grounds for challenging the debt and the existence and quantum of any alleged counter-claims.

Judge Manousaridis dismissed the application for review. The court found that the applicant had failed to establish substantial reasons for questioning the judgment debt or to demonstrate a counter-claim, set-off, or cross-demand that equalled or exceeded the amount of the judgment debt. Consequently, the Registrar's decision to dismiss the application to set aside the bankruptcy notice was upheld.