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Posted 29 September 2015
Category: Levy Recovery
His Honour Justice Street in the case of The Owners – Strata Plan No 18027 v Clarke  FCCA 2185 (23 September 2015) has refused to make orders bankrupting an individual, Ms Clarke, for short payment of a bankruptcy notice by one cent. The creditor’s petition was dismissed with no order as to costs.
In determining this matter the Court applied the legal principle of “de minimis non curate lex”, or “the law does not concern itself with trifling matters”.
While it is important to be aware that a bankruptcy notice must be strictly complied with, the Court in the Clarke case drew the line at ordering that the short payment of a bankruptcy notice by one cent was an act of bankruptcy.
Creditors should ensure that bankruptcy proceedings are not commenced for any trifling amounts to avoid disappointment and incurring legal fees.
Creditors should note that the Court will not entertain bankruptcy proceedings where any amount that remains unpaid from a bankruptcy notice is only a trifling amount such as one cent. For further information or queries in relation to bankruptcy matters please do not hesitate to contact Bannermans Lawyers.
***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.