Stone v Permanent Custodians Ltd

[2016] WASCA 200

Western Australia Court of Appeal

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Interrogate

Catchwords

1. Bankruptcy
2. › Property of bankrupt
3. › Vesting in Official Trustee
4. › Causes of action arising before bankruptcy
5. › Whether discharged bankrupt may bring proceedings on pre-bankruptcy cause of action
6. › Bankruptcy Act 1966 (Cth), ss 5, 58(1)
1. Bankruptcy
2. › Sequestration order
3. › Validity
4. › Whether s 7(2) prohibits sequestration order on creditor's petition presented by corporation
5. › Bankruptcy Act 1966 (Cth), s 7(2)
1. Practice and Procedure
2. › Summary judgment
3. › Appeal
4. › Whether appeal has reasonable prospect of succeeding
5. › Supreme Court (Court of Appeal) Rules 2005 (WA), r 43(2)(g)(i)

Quick Take

A discharged bankrupt cannot bring proceedings to enforce causes of action that arose before the sequestration of their estate, as those causes of action vested in the Official Trustee under s 58(1) of the Bankruptcy Act 1966 (Cth) and do not revert upon discharge. Section 7(2) of the Bankruptcy Act only prohibits sequestration orders against corporations and debtor's petitions by corporations; it does not prohibit a corporation from presenting a creditor's petition.