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Bankruptcy order made as debtor fails to show grounds to set aside judgment-based debt
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The High Court refused an application by a debtor to dismiss a bankruptcy summons issued by a finance company, and instead adjudicated the debtor bankrupt. The debtor argued that the debt figure was overstated because it failed to credit certain payments and rent, challenged the entitlement of the finance company to pursue the debt, and alleged that the proceedings were an abuse of process. The court found that the debt figure was accurately based on a previous court judgment to which the debtor had consented, and noted the debtor had not appealed, sought rectification, or otherwise challenged that judgment in a timely fashion. The court was satisfied that no real or substantial issue for trial had been raised, that there was no abuse of process, and that the finance company was entitled to enforce the judgment following a previous substitution order. Accordingly, the debtor was adjudicated bankrupt.
bankruptcy summons – application to dismiss bankruptcy proceedings – adjudication of bankruptcy – judgment debt – alleged overstatement of debt – payment offsets – consent order – receiver appointment – enforcement of judgment – abuse of process claim – statutory interest – right to demand payment – substitution order – set-off – remedies in bankruptcy
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