After Paksoy was declared bankrupt, ANZ applied for a vesting order under s. 133(9) of the Bankruptcy Act 1966. The bank contended that it is just and equitable for the court to grant a vesting order in cases where neither the state nor any other interested property objected to the application. Further, ANZ asserted that if the court would not grant a vesting order, the bank could not enforce the mortgage agreement and would be deprived of its security.
The case reached the Federal Court, which ruled that an order vesting the property in ANZ must be granted. The court noted that a vesting order is proper if the applicant could show that the property’s trustees made a disclaimer over the property. The applicant…
