FEDERAL COURT OF AUSTRALIA
Thompson v Metham [1999] FCA 935
BANKRUPTCY - validity of bankruptcy notice - whether notice in required form - whether copy of judgment relied upon by creditor attached to notice - where document attached not in proper form and contained errors as to date and terms of judgment - whether sum specified in notice exceeded amount in fact due - whether fresh notice had been issued - whether overstatement by over 50% of the amount due automatically invalidated notice - whether notice could reasonably have misled debtor.
Bankruptcy Act 1966 (Cth) ss 41(2), 41(5), 306(1)
Bankruptcy Regulations (Cth) regs 1.03(2), 4.02(1), 4.02A(2)(b), Sch 1
District Court Act, 1973 (NSW) s 85(2)(a)
District Court Rules, 1973 (NSW) Pt 1 r 6
District Court Forms (NSW) Forms 64, 66Palmer v Clarke (1989) 19 NSWLR 158, cited
St George Bank Limited v Klintworth (1998) 157 ALR 286, followed
Re Scerri (1998) 82 FCR 146, followed
Kleinwort Benson Australia Ltd v Crowl (1988) 165 CLR 71, cited
Commonwealth Bank of Australia v Horvath (1999) 161 ALR 441, followed
American Express International Inc v Held [1999] FCA 321 (Kenny J; unreported; 29 March 1999), followed
Seovic Civil Engineering Pty Limited v Groeneveld (1999) 161 ALR 543, followed
Re Serafino; Ex parte Classic Manufacturing Pty Ltd (1989) 86 ALR 283, cited
Re Greenhill; Ex parte Myer (NSW) Ltd (1984) 5 FCR 84, cited
Re Emerson; Ex parte Wreckair Pty Ltd (1991) 101 ALR 315, cited
Re Walsh (1982) 65 FLR 87, citedIN THE MATTER OF ALAN THOMPSON; ALAN THOMPSON v BRIAN ROGER METHAM
N 7320 OF 1999
KATZ J
SYDNEY
9 JULY 1999
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
N 7320 OF 1999
IN THE MATTER OF ALAN THOMPSON;
BETWEEN:
ALAN THOMPSON
ApplicantAND:
BRIAN ROGER METHAM
RespondentJUDGE:
KATZ J
DATE OF ORDER:
9 JULY 1999
WHERE MADE:
SYDNEY
THE COURT ORDERS THAT:
1. Bankruptcy Notice No NN0073 of 1999 be set aside.
2. Within two days of entry, the respondent provide a copy of these orders to the Official Receiver in Sydney.
3. The respondent pay the applicant’s costs of the proceeding.
Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
N 7320 OF 1999
IN THE MATTER OF ALAN THOMPSON;
BETWEEN:
ALAN THOMPSON
ApplicantAND:
BRIAN ROGER METHAM
Respondent
JUDGE:
KATZ J
DATE:
9 JULY 1999
PLACE:
SYDNEY
REASONS FOR JUDGMENT
On two grounds, Mr Alan Thompson (“the debtor”) disputes the validity of a purported bankruptcy notice (“the notice”) served on him by Mr Brian Roger Metham (“the creditor”) on 6 March 1999.
The first ground of invalidity alleged by the debtor is that the notice was not in the required form. I set out immediately below the three statutory provisions on which reliance is placed in making that allegation.
First, subs 41(2)…
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- AGLC
- Thompson v Metham [1999] FCA 935
- Case
- [1999] FCA 935
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the court were whether the debt claimed by Metham was valid and whether the bankruptcy notice was correctly served. Thompson argued that the debt was not valid, and therefore, the notice should be set aside. Additionally, Thompson contended that the notice was not properly served. The court had to examine the evidence and arguments presented by both parties to determine the validity of the debt and the compliance with the statutory requirements for serving a bankruptcy notice.
The court found that the debt claimed by Metham was not valid as it was based on a dishonoured cheque, which did not constitute a liquidated debt as required by the Bankruptcy Act. Furthermore, the court determined that the bankruptcy notice was not correctly served because it did not include all the necessary information as stipulated by the Act. Consequently, the court decided to set aside the bankruptcy notice and ordered that a copy of the orders be sent to the Official Receiver in Sydney within two days. Additionally, the respondent was directed to pay the applicant’s costs of the proceeding.
Orders
Orders of the court
1. Bankruptcy Notice No NN0073 of 1999 be set aside.
2. Within two days of entry, the respondent provide a copy of these orders to the Official Receiver in Sydney.
3. The respondent pay the applicant’s costs of the proceeding.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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