Westpac Banking Corporation v Faress

Westpac Banking Corporation initiated proceedings against Adib Faress in the Federal Circuit Court, seeking a sequestration order against his estate. The dispute hinges on whether Faress was carrying on business in Australia at the time of the act of bankruptcy, as required by s.43(1)(b)(iii) of the Bankruptcy Act. The petitioning creditor argues that Faress was conducting business in Australia when the act of bankruptcy occurred, which would provide the court with the necessary jurisdiction to make a sequestration order.

The court had to determine whether the evidence demonstrated that Faress was indeed carrying on business in Australia when the act of bankruptcy was committed. This involved assessing the broad interpretation of "carrying on business," which includes situations where active trading has ceased, but the business is still being wound up. The court considered precedents such as Re Vassis; Ex parte Leung, which illustrate that the winding up of a business and the payment of its debts can constitute carrying on business. The court also noted that the payment of debts to conclude a business is not narrowly defined, as evidenced by Morpizitis v Bernasconi.

After reviewing the evidence and relevant legal precedents, the court concluded that Faress was carrying on business in Australia at the relevant time. Consequently, the court found that it had jurisdiction under s.43(1)(b)(iii) of the Bankruptcy Act to make a sequestration order against Faress's estate. The court also ordered that the petitioning creditor's costs be taxed and paid from Faress's estate in accordance with the Bankruptcy Act 1966.