Skase v Donnelly; Re Donnelly; Ex parte Skase

Christopher Charles Skase applied to the High Court of Australia for a writ of prohibition against Max Donnelly, the trustee in bankruptcy of Skase's estate. Skase also sought costs in relation to these proceedings.

The central legal issue before the Court was the constitutional validity of sections 139ZG(3), (4), and (5) of the *Bankruptcy Act*. These provisions empowered a trustee in bankruptcy to issue a certificate specifying the amount payable by a bankrupt as a contribution from their earnings, which, upon lodging with a court, would take effect as a judgment of that court. Skase contended that this constituted an unlawful delegation of judicial power.

The Court was informed that subsequent to the institution of these proceedings, the Commonwealth enacted amending legislation that repealed the impugned provisions. The new legislation substituted provisions whereby a trustee's certificate served merely as prima facie evidence of the liability amount, rather than having the force of a court judgment. This amendment was introduced in reaction to Skase's High Court challenge, based on advice that the proceedings were likely to succeed.

The Court made no specific orders in the provided transcript, as the matter appears to have been at a preliminary stage of argument concerning the application for costs and the context of the amended legislation.