A petitioning creditor cannot obtain a sequestration order where the judgment debt relied upon in the bankruptcy notice and creditor's petition has been set aside on appeal before the hearing of the petition, even if the debtor committed an act of bankruptcy by failing to comply with the bankruptcy notice. A costs order that has not been assessed under the applicable rules is not a liquidated sum and cannot found a creditor's petition under s 44(1)(b) of the Bankruptcy Act 1966 (Cth). A debt arising after the act of bankruptcy (such as a costs order made on appeal) cannot be relied upon to satisfy ss 44(1) and 52(1).
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