A costs assessment application by a non-associated third party payer under s 295(3) of the Legal Profession Act 2008 (WA) constitutes a 'legal proceeding in respect of a provable debt' within s 58(3)(b) of the Bankruptcy Act 1966 (Cth) where the practical effect of the assessment would be to quantify amounts refundable by the bankrupt to the applicant. Leave from a court exercising bankruptcy jurisdiction is required before such proceedings can be commenced or continued. The payment obligation must be extant at the time of the assessment application, not merely at the time of payment. A costs assessment obtained by a non-associated third party payer does not bind the law practice and creates no right to recover overpaid amounts from the law practice.
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