Event and Time
Event Description
- Event: Application for review of the sequestration order made by the Registrar against the estate of Mr. Fayad.
- Date: 14 September 2023.
Application and Claims
- Mr. Fayad applied for a review of a sequestration order based on two grounds:
1. Service of Bankruptcy Notice: He contended that he was not served with the Bankruptcy Notice, which is essential to establish an act of bankruptcy. 2. Adjournment Request: He requested the court to adjourn the hearing of the creditor’s petition pending a determination of his application for review before the Administrative Appeals Tribunal (AAT).
Judicial Decisions
- The application for review was dismissed, and the sequestration order made by the Registrar was affirmed.
- The costs of the applicant (DCT) were to be paid out of Mr. Fayad’s estate with the same priority as the costs of the petition.
Dispute Points and Legal Basis
Dispute Points
- Claim by Mr. Fayad:
- No Act of Bankruptcy: Argued that he was not served with the Bankruptcy Notice issued on 17 November 2021 demanding payment of a judgment amount. - Claim for Adjournment: Asserted that the court should adjourn the hearing of the bankruptcy petition due to ongoing challenges to the amended notices of assessment before the AAT, implying solvency if successful.
- Counterarguments by DCT:
- Validity of Bankruptcy Notice: Asserted that the Bankruptcy Notice was duly served and its requirements not complied with, constituting an act of bankruptcy. - Timeliness of Sequestration Order: Contended that the ongoing review with AAT should not obstruct the bankruptcy process and that the existing debt justified the sequestration order.