Ing, J. v Pendlemoore Pty Ltd [1995] FCA 158

IN THE FEDERAL COURT OF AUSTRALIA) GENERAL DIVISION ) BANKRUPTCY DISTRICT ) OF THE STATE OF VICTORIA ) No VP 1157/94

Re: JOHN ING Debtor Ex parte: PENDLEMOORE PTY LTD (In Liquidation) Creditor Coram: Olney J Place: Melbourne Date 24 March 1995

REASONS FOR JUDGMENT On 13 July 1994, the debtor committed an act of bankruptcy when he failed to comply with the requirements of a bankruptcy notice served on him on 29 June 1994. The bankruptcy notice was issued on the application of Pendlemoore Pty Ltd (Pendlemoore), a company in liquidation. The demand in the bankruptcy notice related to a judgment debt of $17,666.30 and interest amounting in all to a total of $20,643.53. The judgment debt arose when the debtor unsuccessfully sued Pendlemoore in the County Court and was ordered to pay the company's costs. The costs were taxed on 19 March 1993 in the sum of $17,666.30. After service of the bankruptcy notice, the debtor sought to have it set aside and filed a lengthy affidavit to that end. The matter was ultimately heard by Northrop J on 2 November 1994. His Honour held that the affidavit filed on behalf of the judgment debtor did not answer the description of an affidavit required by s 41(7) of the Bankruptcy Act. There was accordingly no statutory extension of time for compliance with the bankruptcy notice and an act of bankruptcy had been committed at the expiration of 14 days from the date of service. The creditor's petition now before the Court was presented and issued on 15 November 1994 and served on the debtor on 16 November 1994. On 30 January 1995, the debtor filed a document entitled "Notice of Intention of Debtor to Appear at Hearing of Petition". This document runs to seven and a half pages of typescript. In it the debtor purports to set out the grounds upon which he opposes the petition. These include, amongst many others, a denial that he owes the amount of the judgment debt and an assertion that the petitioning creditor is indebted to him in a sum in excess of the judgment debt. The balance of the notice contains an extensive litany of assertions which are to a large extent incomprehensible and to some extent so vexatious and scandalous as to amount to an abuse of process. The final two sentences of the notice read: The debtor has further some $500,000 outstanding with 12 of his debtors. The debtor handles prosecution of his debtors in person and consequently is limited by time available to him to do so.