Van Leeuwen v Bank of Western Australia Ltd

Mr Van Leeuwen, an accountant and business advice consultant, filed an application to set aside a bankruptcy notice issued by the Bank of Western Australia Ltd, on the ground that he had a counterclaim, set off or cross demand, equal to or exceeding the sum specified in the bankruptcy notice. This application was dismissed by Deputy Registrar Rayney. Mr Van Leeuwen then filed a motion for review of the Deputy Registrar's decision. The primary issue before the court was whether Mr Van Leeuwen had a counterclaim, set off or cross demand, equal to or exceeding the sum specified in the bankruptcy notice. This required the court to consider the merits of Mr Van Leeuwen's claim against the Bank for the unpaid fee of $52,500, and whether this claim could be considered a cross demand under the Bankruptcy Act.

The court considered the evidence and submissions from both parties. The court found that Mr Van Leeuwen's claim against the Bank for the unpaid fee was a genuine and valid claim, but it was not a cross demand under the Bankruptcy Act. The court held that a cross demand must be a claim in respect of a debt or liquidated demand which arose out of the same transaction or series of transactions as the debt specified in the bankruptcy notice. Mr Van Leeuwen's claim for the unpaid fee arose out of a separate contract between him and the Bank, and not out of the same transaction or series of transactions as the debt specified in the bankruptcy notice. Therefore, the court dismissed the application and ordered that Mr Van Leeuwen pay the Bank's costs of the application.