Australian Securities and Investment Commission v King [2021] FCA 1610

Federal Court of Australia

Australian Securities and Investment Commission v King [2021] FCA 1610 File number(s): QUD 287 of 2021

Judgment of: DOWNES J

Date of judgment: 20 December 2021

Catchwords: BANKRUPTCY AND INSOLVENCY – whether creditor with non-provable debt can present a creditor's petition – whether court has jurisdiction to make sequestration order – where creditor also has provable debts – where debtor is insolvent – whether creditor has to show special circumstances before sequestration order made – whether abuse of process – sequestration order made

Legislation: Bankruptcy Act 1966 (Cth) ss 40, 43, 44, 52, 81, 82 Corporations Act 2001 (Cth) s 137GAA Corporations Law s 1317EA Limitation Act 1969 (NSW) s 17 Insolvency Act 1986 (UK)

Cases cited: ASIC v Forge (2003) 133 FCR 487; [2003] FCAFC 274 Australian Securities and Investments Commission v Managed Investments Ltd & Ors (No 10) [2017] QSC 96 Bechara v Bates (2021) 388 ALR 414; [2021] FCAFC 34 Dowling v Colonial Mutual Life Assurance Society Ltd (1915) 20 CLR 509; [1915] HCA 56 King v Henderson [1898] AC 720 Levy v Legal Services Commission [2001] 1 All ER 895; [2000] EWCA Civ 285 Motor Terms Co Pty Ltd v Liberty Insurance Ltd (1967) 116 CLR 177 O'Mara Constructions Pty Ltd v Avery (2006) 151 FCR 196; [2006] FCAFC 55 Regional Express Holdings Ltd v Australian Federation of Air Pilots (2017) 262 CLR 456; [2017] HCA 55 Robson as former trustee of the estate of Samsakopoulos v Body Corporate for Sanderling at Kings Beach CTS 2942 [2021] FCAFC 143 Russell v Russell [1998] 1 FLR 936; [1998] BPIR 259 SZTAL v Minister for Immigration and Border Protection (2017) 262 CLR 362; [2017] HCA 34 Tabcorp Holdings Ltd v Victoria (2016) 328 ALR 375; [2016] HCA 4 Tanning Research Laboratories Inc v O'Brien (1990) 169 CLR 332; [1990] HCA 8 Tjungarrayi v Western Australia (2019) 269 CLR 150; [2019] HCA 12 Williams & Ors v Spautz (1992) 174 CLR 509