James v Federal Commissioner of Taxation [1955] HCA 75

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FEDERAL COMMISSIONER OF TAXATION . Responpenr.

Bankruptey—Bankruptey notice—Non-compliance—Validity of notice—Payment— H. C. or A.

Not in accordance with terms of judgment—Agent specified in liew of creditors— 195: Right of debtor to secure or compound debt to satisfaction of creditors themselves— avers Debtor not notified—Defect—Formality—Bankruptey Act 1924-1954, ss. 7, SYDNEY, 52 (j), 53—Bankruptcy Rules, rr. 6, 144, Form 5. arene 16,

Unless a judgment or order requires a debtor to pay the creditor at a

particular place a bankruptcy notice founded thereon should not, by virtue {Villiams, of s. 53 of the Bankruptcy Act 1924-1954, so require. Taylor JJ.

The proviso to s. 53 of the Bankruptcy Act 1924-1954 does not authorize the specification of an agent in substitution for, and to the exclusion of, the creditor himself; its terms only authorize the specification of an agent to act on behalf of a creditor in respect of any payment or other thing required by the notice to be made to or done to the satisfaction of the creditor.

A bankruptcy notice which restricts a debtor to paying the debt to a number of creditors at one particular place or does not notify him that he may in the alternative secure or compound the debt to their satisfaction, does not comply with the requirements of s. 53 and is invalid.

A bankruptcy notice by which a debtor is notified alternatively that he must compound for the debt to the satisfaction of a person nominated by one of three named creditors, " the agent for the above-named creditors, or the satisfaction of the Bankruptey Court" does not follow the prescribed form varied to meet the circumstances in that it fails to notify the debtor that he may secure or compound the debt to the satisfaction of the creditors themselves. Such a defect cannot be cured under s. 7 of the Bankruptcy Act 1924-1954 as a formal defect or irregularity, and the notice is invalid.