The Owners - Strata Plan No.6766 v Nomchong (No.2)

The Owners - Strata Plan No.6766 (the applicant) sought a sequestration order against Mr. Nomchong (the respondent) in the Federal Court of Australia. The application was based on an unsatisfied judgment debt owed by the respondent to the applicant.

The primary legal issues before the Court were whether the preconditions for making a sequestration order were satisfied, specifically whether the respondent was unable to pay his debts, and whether there was any sufficient cause why a sequestration order ought not be made.

Judge Manousaridis found that the applicant had established the necessary preconditions for a sequestration order. The existence of the unsatisfied judgment debt was not disputed, and the Court was satisfied that the respondent was unable to pay his debts. Furthermore, the Court determined that there was no sufficient cause presented by the respondent to justify refusing the sequestration order. Consequently, the Court made the sequestration order against Mr. Nomchong.