Butler, J.H. v Ex parte Taylor, A.R. [1995] FCA 420

CATCHWORDS BANKRUPTCY - Whether indemnity for costs of litigation within meaning of s.109(10)(a) Bankruptcy Act 1966 (Cth) given by certain creditors - promise to pay debt a method of effecting indemnity against a liability - offer to fund litigation may be indemnity for costs within s.109(10) - indemnity must be in relation to litigation for the recovery of property to which s.116 Bankruptcy Act 1966 (Cth) applies. BANKRUPTCY - Court's discretion limited to order in respect of specific property or proceeds of property recovered by the litigation - whether just and equitable to make order depends on facts and circumstances - consideration of risk to which indemnifying creditors exposed - that other creditors not given notice of litigation nor opportunity to join in indemnity a circumstance weighing against making order. Bankruptcy Act 1966 (Cth) ss.108, 109, 116

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