Australian Workers' Union v Bowen [1946] HCA 24

PL,1. 36

cons 21 NSWiLR 2.

2 CLR.) OF AUSTRALIA. 575

{HIGH COURT OF AUSTRALIA.) USTRALIAN WORKERS' UNION ANDY yo. OTHERS . 7 i ' , . ' PELLANTS ;

APPLICANTS, AND

a, ae ete Fo ice cos. gees) REsPONDENT. RESPONDENT,

ON APPEAL FROM THE FEDERAL COURT OF BANKRUPTCY.

kruptcy—Equity suit—Joint plaintiffs—Joint defendants—Oosts awarded to H.C. or A. defendants—Non-payment of costs by plaintiffs—Bankruptey notice against one 1946. plaintiff —Issue by defendants' solicitor—Non-compliance—Petition—Notice and ba at petition not authorized by all defendants—Validity of notice—Regularity of petition SYDNEY, —Joint petitioning creditor—No indemnity offered to non-consenting creditors— July 23, 24; - Solicitor's retainer—Procedure to challenge retainer—Bankruptcy Act 1924-1933 Ag. 23. (No. 37 of 1924—No. 66 of 1933), ss. 7, 52 (j)—Bankruptey Rules, rr. 152, 172,

The plaintiffs in an equity suit were ordered to pay the costs of an industrial _ union and a number of its members, the defendants in the suit. 'The defen dants' solicitor, whose retainer did not extend beyond the equity suit, issued _ in the names of all the defendants as judgment creditors a bankruptcy notice against B. one of the plaintifis, based on the order for costs. B. did not comply with the bankruptey notice and a petition, based upon such non-compliance, in which all the defendants were named as petitioners, was presented for the sequestration of his estate. D, and M., two of the defendants, did not authorize the issue of the bankruptcy notice nor did they authorize the presenta- tion of, or sign, the petition. Before the hearing of the petition the industrial union had in fact paid all the defendants' costs, but there was no evidence that it had offered any indemnity to M. or D. in respect of costs which they _ may have incurred in the bankruptcy proceedings. The petition was dismissed. Upon appeal,