Sutton v AJ Thompson Pty Ltd (In liq)

Sutton v AJ Thompson Pty Ltd (In liq) was an application by Trade Credits Ltd, a creditor, seeking an order that a notice of discovery be set aside or limited. The notice of discovery was issued by the alleged debtor, John Worthy Barn, pursuant to rule 146 of the Bankruptcy Rules. The creditor argued that the notice was overly broad and would result in a costly and time-consuming production of documents from Queensland, which were also being used in other proceedings. The court needed to determine whether an order should be made for the filing of an affidavit of discovery, and if so, whether it should be limited to specific matters in question.

The court considered the scope of the discovery and the potential issues that might arise in the contested bankruptcy proceedings. The respondent outlined several issues that could be raised in defence of the petition, some of which challenged the basis of the bankruptcy notice. The court found it inappropriate to prejudge the issues at this stage and noted that the urgency of the matter did not allow for a thorough search for authority on the specific issue of re-examining the basis of a preceding judgment. The court concluded that while it was necessary to order an affidavit of discovery, it should be limited to the matters in question as defined by the respondent. Any disputes regarding these matters would be resolved at the hearing.

The court ordered that the respondent provide a list of the matters in question within seven days and that the creditor file an affidavit of discovery within fourteen days. The court also granted liberty to apply to the court's associate regarding disputes related to the discovery proceedings. The court stood over other matters, including the question of costs, until the hearing of the bankruptcy petition.