University of Southern Queensland v Luck

The Federal Circuit Court of Australia heard a creditor's petition filed by the University of Southern Queensland against Gaye Luck. The University sought an order for the sequestration of Ms Luck's estate, based on an unsatisfied costs order from a previous Federal Court proceeding. The petition had been adjourned on multiple occasions, largely at Ms Luck's request, to allow for the determination of various appeals she had lodged. A key issue arose concerning whether the creditor's petition had lapsed due to not being determined within 12 months of its presentation, as stipulated by the *Bankruptcy Act 1966* (Cth).

The court was required to determine whether an order made by a Registrar to extend the life of the creditor's petition, which was made more than 12 months after the petition's presentation, was effective in preventing the petition from lapsing. Ms Luck contended that this order was invalid and that the petition had lapsed. She also sought an adjournment of the petition's further hearing pending the determination of proceedings she had commenced in the High Court of Australia. The court also considered the scope of powers conferred upon Registrars and the application of the "slip rule" in varying court orders.

The court reasoned that the order extending the life of the petition, made on 31 May 2016, operated retrospectively from 22 March 2016, meaning it was made within the 12-month period from the petition's presentation. Therefore, the order was effective in extending the petition's life to 8 April 2017, and by operation of section 52(5) of the *Bankruptcy Act*, the petition had not lapsed. The court found no sufficient cause to grant a further adjournment, particularly given Ms Luck's extensive litigation history and the lack of a valid basis for setting aside the order extending the petition's life. Consequently, the court dismissed Ms Luck's application to set aside the order and refused her request for an adjournment.

The court made a sequestration order against the estate of Gaye Luck. It also ordered that Ms Luck pay the University's costs of her application and that the University's costs of the sequestration proceedings be taxed and paid from Ms Luck's estate. The date of the act of bankruptcy was noted as 30 March 2015.