Commonwealth Bank of Australia v Paola [2005] FCA 855

FEDERAL COURT OF AUSTRALIA

Commonwealth Bank of Australia v Paola [2005] FCA 855 BANKRUPTCY – Creditors petition – sequestration order – where debtor claimed that success in other pendant litigation would provide funds to repay creditor – application by debtor to adjourn hearing of petition until determination of other litigation – creditor's petition granted.

Bankruptcy Act 1966 (Cth), s 40(1)(g), s 52(1), s58(3)(a)

Bayne v Blake (1909) 9 CLR 347 – referred to Cain v Whyte (1933) 48 CLR 639 – referred to Clyne v Deputy Commissioner of Taxation (1984) 154 CLR 598 – referred to Dowling v Colonial Mutual Life Assurance Society Limited (1915) 20 CLR 509 – referred to Field v Commercial Banking Co of Sydney Ltd (1978) 22 ALR 403 – cited Ling v Enrobook Pty Ltd (1997) 74 FCR 19 – discussed Re Schmidt; Ex parte Anglewood Pty Ltd (1968) 13 FLR 111 – referred to Rozenbes v Kronhill (1956) 95 CLR 407 – cited Springfield Nominees Pty Ltd v Bridgelands Securities Ltd (1992) 38 FCR 217 – applied Westpac Banking Corp v Tsatsoulis [2003] FCA 406 – referred to COMMONWEALTH BANK OF AUSTRALIA v ANTHONY M PAOLA (IN THE MATTER OF ANTHONY M PAOLA) N 1590 OF 2004 HILL J 24 JUNE 2005 SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY N 1590 OF 2004

BETWEEN: COMMONWEALTH BANK OF AUSTRALIA

APPLICANT

AND: ANTHONY M PAOLA

RESPONDENT

JUDGE: HILL J

DATE OF ORDER: 24 JUNE 2005

WHERE MADE: SYDNEY

THE COURT ORDERS THAT:

1. The Estate of Anthony M Paola be sequestrated.

2. The applicant creditor's costs, including any reserved costs, be taxed and paid in accordance with the Bankruptcy Act 1966 (Cth).

THE COURT NOTES THAT:

1. The date of the act of Bankruptcy is 27 October 2004.

2. A copy of this order is to be provided to the Official Receiver within two days after the order is entered.