Theo v Official Trustee Bankruptcy & Ors

The applicant, Theo, sought to set aside a sequestration order made against his estate. The respondents were the Official Trustee in Bankruptcy and other creditors. The dispute concerned the validity of the sequestration order and whether it should be annulled. The application was heard by Callinan J in chambers.

The primary legal issue before the Court was whether the sequestration order should be annulled under section 153B of the *Bankruptcy Act 1966* (Cth). This required the Court to consider whether the applicant had paid all his debts provable in the bankruptcy, or whether there were sufficient grounds to justify the annulment.

Callinan J found that the applicant had failed to demonstrate that he had paid all his debts provable in the bankruptcy. The evidence presented did not establish that the applicant had discharged his financial obligations to the creditors. Consequently, the Court determined that the grounds for annulment under section 153B were not met.

The application to annul the sequestration order was dismissed.