Recent Cases

Allison v Murphy [2021] FCAFC 232 (20 December 2021) (Besanko, Colvin and Downes JJ)


Catchwords:


BANKRUPTCY AND INSOLVENCY – funds held in solicitor’s trust account when sequestration order was made by registrar – funds transferred to petitioning creditor after sequestration order made – transferred funds less than debt owed to creditor – creditor did not accept tender of payment of debt – whether judge conducted de novo hearing – whether judge put to one side the fact that there had been a sequestration order – whether judge erred in approaching review on basis that sequestration order meant that funds in solicitor’s trust account were not funds available to debtor for the purposes of the hearing de novo – consequence of payment not being accepted by creditor was that creditor’s petition should not have been dismissed