Federal Court of Australia
FEDERAL COURT OF AUSTRALIA
Campbell v Official Trustee in Bankruptcy [1999] FCA 1243
No question of principle
Bankruptcy Act 1966 s 153B
KEITH MALCOLM CAMPBELL v THE OFFICIAL TRUSTEE IN BANKRUPTCY N7730 OF 1999 LOIS AUDREY CAMPBELL v THE OFFICIAL TRUSTEE IN BANKRUPTCY N 7731 OF 1999 HELY J
27 JULY 1999 SYDNEY
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY N 7730 OF 1999
N 7731 OF 1999
BETWEEN: KEITH MALCOLM CAMPBELL
First Applicant
LOIS AUDREY CAMPBELL
Second Applicant
AND: THE OFFICIAL TRUSTEE IN BANKRUPTCY
Respondent
JUDGE: HELY J
DATE OF ORDER: 27 JULY 1999
WHERE MADE: SYDNEY
THE COURT ORDERS THAT: 1. The applications be dismissed. 2. The applicants pay the respondent's costs. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY N 7730 OF 1999
N 7731 OF 1999
BETWEEN: KEITH MALCOLM CAMPBELL
First Applicant
LOIS AUDREY CAMPBELL
Second Applicant
AND: THE OFFICIAL TRUSTEE IN BANKRUPTCY
Respondent
JUDGE: HELY J
DATE: 27 JULY 1999
PLACE: SYDNEY
EX TEMPORE REASONS FOR JUDGMENT 1 I have before me applications by Mr and Mrs Campbell, pursuant to s 153B of the Bankruptcy Act 1966 (Cth) seeking annulments of their respective bankruptcies. The ground on which the annulments are sought is that the sequestration orders ought not to have been made because the bankruptcy petitions were filed for an improper purpose, the improper purpose being a desire on the part of the petitioning creditor to frustrate the prosecution of appeals by Mr and Mrs Campbell in the New South Wales Court of Appeal. 2 The history of this matter is that in 1995, as a result of orders made by Barr AJ in the Supreme Court of New South Wales, Mr and Mrs Campbell were judged liable to Metway Leasing Limited in the sum of about $360,000 inclusive of costs. On 17 July 1995, Sheller JA, in the New South Wales Court of Appeal, refused to continue a stay of the proceedings in that Court pending the determination of the appeals. 3 On 6 June 1996, a sequestration order was made in relation to Mr Campbell's estate. On 4 April 1997, a sequestration order was made with respect to Mrs Campbell's estate. 4 On 1 September 1998, Wilcox J gave judgment on an application by Mr and Mrs Campbell for the annulment of their bankruptcies. The substantial basis of the application made to Wilcox J was the same as the basis on which the application was made to me, namely that the bankruptcy proceedings were instituted for an improper purpose. His Honour dismissed the application and did so upon the basis that there was no evidence before him of improper purpose. His Honour said at page 6:
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