A judgment debt is capable of being 'a debt incurred by means of fraud' within s 153(2)(b) of the Bankruptcy Act 1966 (Cth), notwithstanding the doctrines of merger by judgment and res judicata. Power v Kenny [1977] WAR 87, which held to the contrary, was disapproved by the majority. However, whether a particular judgment debt was in fact incurred by means of fraud must be determined by reference to the reasons for judgment, and findings made in a proceeding where fraud was not pleaded will not readily be characterised as findings of fraud. The question whether equitable fraud falls within s 153(2)(b) remains open.
The full text is available to signed-in members, including the 1 later case that cites this judgment.