T & S Recoveries Pty Ltd v Skalkos

T & S Recoveries Pty Ltd filed a bankruptcy petition against Theodore Skalkos, who opposed the petition on the basis of service of the bankruptcy notice. The matter was referred to the duty judge to determine the validity of the service. The key issue was whether the service of the bankruptcy notice was validly carried out according to the provisions of the Bankruptcy Act. The court examined the order for substituted service made by the Federal Court and whether it complied with the statutory requirements.

The court found that the order for substituted service did not meet the requirements of section 129 of the Bankruptcy Act, which mandates that the court must be satisfied the substituted service is likely to bring the notice to the debtor's attention. The order did not provide sufficient evidence that the notice was sent by prepaid ordinary post or personally served on someone over sixteen years old at the debtor's last known address. The court concluded that the service was defective and therefore invalid.

Consequently, the court ruled that the bankruptcy notice was not validly served, and as a result, the act of bankruptcy did not occur. The court granted the leave to amend the petition accordingly and made a sequestration order against Theodore Skalkos. The applicant's costs were to be paid out of the bankrupt estate.