NRMA Insurance Ltd v Vale

[2001] FCA 511

FEDERAL COURT OF AUSTRALIA

NRMA Insurance Ltd v Vale [2001] FCA 511

BANKRUPTCY – bankruptcy notice – whether valid – debtor brought proceeding in Supreme Court – proceeding transferred to District Court – debtor unsuccessful – order for costs made against debtor – District Court decision appealed – bankruptcy notice issued – whether address of creditor’s solicitor given in bankruptcy notice misleading – whether order required to be attached to bankruptcy notice is original order or costs order ‑ whether s 41(2) of Bankrupcy Act 1966 (Cth) requires certificate of taxed costs to be attached to notice 

BANKRUPCY –making of sequestration order – where debtor divested herself of valuable real property for nominal consideration – where appeal of decision giving rise to debt on foot – whether unfairly prejudicial to make order pending outcome of appeal

Bankrupcy Act 1966 (Cth) s 41, 52, Reg 4.02
Motor Accidents Act 1988 (Cth) s 66A

Stec v Orfanos (1999) FCA 457 cited

NRMA INSURANCE LIMITED v LINDA ANNE VALE  (IN THE MATTER OF: LINDA ANNE VALE)

N 7118 OF 2001

EMMETT J
24 APRIL 2001
SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY	N 7118 OF 2001

BETWEEN:	NRMA INSURANCE LIMITED APPLICANT
AND:	LINDA ANNE VALE RESPONDENT
JUDGE:	EMMETT J
DATE OF ORDER:	24 APRIL 2001
WHERE MADE:	SYDNEY

THE COURT ORDERS THAT:

1. A sequestration order be made against the estate of Linda Anne Vale.

2. The petitioning Creditor’s costs including reserved costs be taxed and paid in accordance with the Act.

THE COURT NOTES THAT:

1. The act of bankruptcy was committed on 26 February 2001.

2. Consent to act as a trustee has been signed by Roderick Mackay Sutherland and has been lodged with the official receiver in Sydney.

Note:    Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY	N 7118 OF 2001

BETWEEN:	NRMA INSURANCE LIMITED APPLICANT
AND:	LINDA ANNE VALE RESPONDENT

JUDGE:	EMMETT J
DATE:	24 APRIL 2001
PLACE:	SYDNEY

REASONS FOR JUDGMENT

1. On 29 September 1994, Linda Anne Vale (“the Debtor”), commenced proceedings in the Supreme Court of New South Wales against her husband, Malcolm Geoffrey Vale. In that proceeding the Debtor alleged that she was a passenger in a motor vehicle driven by her husband at the time of an accident in which she was severely injured on 14 November 1992. On 12 April 1995, Master Malpass granted leave to NRMA Insurance Limited (“the Creditor”), to be joined as a party to the proceeding pursuant to s 66A of the Motor Accidents Act 1988 (NSW).

2. A defence was filed by the Creditor on 18 August 1995, in which it was alleged that the Debtor was, in fact, the driver of the vehicle at the time of the accident.  The proceeding was transferred to the District Court and at a call-over held on 25 August 1998, the proceeding in the District Court was listed for hearing to commence…