Prentice v Fewin Pty Limited, in the matter of Prentice [2017] FCA 490

FEDERAL COURT OF AUSTRALIA

Prentice v Fewin Pty Limited, in the matter of Prentice [2017] FCA 490 File number(s): NSD 2014 of 2016

Judge(s): BROMWICH J

Date of judgment: 11 May 2017

Catchwords: BANKRUPTCY AND INSOLVENCY – application to set aside bankruptcy notice – "counter-claim, set-off or cross demand" pursuant to ss 40(1)(g) and 41(7) of the Bankruptcy Act 1966 (Cth) – requirement that bankruptcy notice debt and offsetting claim be mutual – whether absence of mutuality overcome by equitable right of set-off – whether proceedings an abuse of process – whether the interests of justice require setting aside of the bankruptcy notice

Legislation: Bankruptcy Act 1966 (Cth), ss 30(1), 40(1), 41(5), 41(6A), 41(6C), 41(7) Federal Court Rules 2011 (Cth), rr 39.31, 39.35, 40.32

Cases cited: Adsett v Berlouis (1992) 37 FCR 201 Algama v Minister for Immigration and Multicultural Affairs [2001] FCA 1884; (2001) 115 FCR 253 Clyne v Deputy Commissioner of Taxation (NSW) (No 4) (1982) 42 ALR 703 Coshott v Prentice (No 2) [2016] FCA 1531 Doherty v Murphy [1996] 2 VR 553 Hill v Ziymack (1908) 7 CLR 352 Lentini; Ex parte Lentini v CSR Ltd (1991) 29 FCR 363 Murphy v Zamonex Pty Ltd (1993) 31 NSWLR 439 Rawson v Samuel (1841) 41 ER 451 Re Briggs; Ex parte Briggs v Deputy Commissioner of Taxation (WA) (1986) 12 FCR 310 Re Judd; Ex parte Pike (1924) 24 SR (NSW) 537 Re Last; Ex parte Butterell (1994) 124 ALR 219 Re V P Developments Ltd; Penwith District Council v V P Developments Ltd [2005] EWHC 259 (Ch); [2005] BCLC 607 Rozenbes v Kronhill (1956) 95 CLR 407 Seller v Deputy Commissioner of Taxation [2011] FCA 865; (2011) 282 ALR 80 St George Wholesale Finance Pty Ltd v Spalla (2000) 181 ALR 682 Stec v Orfanos [1999] FCA 457 Williams v Spautz (1991) 174 CLR 509 Derham R, Derham on the Law of Set-Off (3rd ed, Oxford University Press, 2003); (4th ed, Oxford University Press, 2010) Heydon J, Leeming M, Turner P, Meagher, Gummow & Lehane's Equity Doctrines and Remedies (5th ed, LexisNexis, 2015)