Where a trustee in bankruptcy elects to discontinue a bankrupt's action under s 60(2) of the Bankruptcy Act 1966 (Cth), the court should stay the action until further order rather than dismiss it, to preserve the bankrupt's right to seek review of the trustee's election under s 178. A letter to the trustee providing details of the bankrupt's action does not constitute 'notice of the action' under s 60(3) unless it specifically draws attention to the fact that time is running against the trustee under that provision.
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