RAVESI v HEGYI

The applicant, Ravesi, sought a review of a Registrar's sequestration order made against him. The petitioning creditor was Hegyi. The dispute arose from an application to set aside a default judgment that had been obtained by Hegyi against Ravesi. Crucially, the sequestration order was made by the Registrar *before* the default judgment was set aside. The matter came before Judge Street in the Supreme Court of Victoria.

The primary legal issue before the Court was whether the sequestration order, which was predicated on a default judgment that was subsequently set aside, should stand. A related issue concerned the appropriate orders for costs, given the applicant's delay in filing a defence and the costs incurred by the trustee.

Judge Street reasoned that a sequestration order based on a default judgment that is later set aside must itself be set aside. The Court applied the principle that the foundation for the sequestration order had been removed, rendering the order invalid. The Court also considered the costs. While the sequestration order was set aside, the Court found that Ravesi's delay in filing his defence had caused costs to be incurred by the petitioning creditor and the former trustee.

Consequently, Judge Street ordered that the sequestration order be set aside. However, Ravesi was ordered to pay the petitioning creditor's and the former trustee's costs.