Reid v Hubbard [2003] FCA 1424

FEDERAL COURT OF AUSTRALIA

Reid v Hubbard [2003] FCA 1424 BANKRUPTCY – application by third party to set aside bankruptcy notice – whether debt exists – whether bankruptcy notice issued for an improper purpose – whether bankruptcy notice an abuse of process. PRACTICE AND PROCEDURE – appeal from Federal Magistrate's decision not to set aside bankruptcy notice - whether leave to appeal required. Bankruptcy Act 1966 (Cth), ss 30(1), 40(1)(g), 41, 52(2), 303 Federal Court of Australia Act 1976 (Cth), s 24(1A) Federal Court Rules, O 62 r 9 A-Pak Plastics Pty Ltd v Merhone Pty Ltd (1995) 120 FLR 277 applied Flower & Hart v White Industries (Qld) Pty Ltd (1999) 87 FCR 134 referred to Ling v Enrobook Pty Ltd 1997 74 FCR 19 referred to Myers v Elman [1940] AC 282 cited Re Athans; ex parte Athans (1991) 29 FCR 302 followed Re Bendeich (1994) 53 FCR 422 cited Re Briggs; ex parte Briggs v Deputy Commissioner of Taxation (WA) (1986) 12 FCR 310 followed Re: Ousley; ex parte Commissioner of Taxation (1994) 48 FCR 131 referred to Sandell v Porter (1966) 115 CLR 666 referred to In Re Tweeds Garages Ltd [1962] Ch 406 cited White Industries (Qld) Pty Ltd v Flower & Hart (1998) 156 ALR 169 cited SUSAN REID & MICHAEL JAMES REID V JOHN HAROLD HUBBARD & ESANDCEE PTY LTD V933 OF 2003

HEEREY J MELBOURNE 5 DECEMBER 2003

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY V933 OF 2003

ON APPEAL FROM THE FEDERAL MAGISTRATES COURT OF AUSTRALIA

BETWEEN: SUSAN REID

FIRST APPELLANT

MICHAEL JAMES REID (by his Litigation Guardian Susan Reid)

SECOND APPELLANT

AND: JOHN HAROLD HUBBARD

FIRST RESPONDENT

ESANDCEE PTY LTD (ACN 073 887 822)

SECOND RESPONDENT

JUDGE: HEEREY J