Re Muritala

Bankruptcy - Tomlin Order

Sarah Clarke - This was an interesting issue on a bankruptcy petition which was being defended with the assistance of PILARS (pro-bono bankruptcy representation pilot scheme)

A bankruptcy Petition was presented against M based on a default judgment. An application to set aside the default judgment was compromised by a Tomlin order. The schedule to the Tomlin Order provided that judgment would be set aside and the M would pay the debt upon which the judgment was based in full with costs. M failed to comply with the terms of the Tomlin Order and obtained a series of adjournments to the bankruptcy petition. By the final hearing of the petition the Petitioner had obtained a further order of the court providing for payment of the debt by way of enforcement of the terms of the schedule to the Tomlin Order. The Petitioner also sought to rely upon the fact that the Petitioner had only agreed to set aside the default judgment because M had claimed this was necessary to enable him to make payment.

Registrar Simmonds found that the court had no jurisdiction to make the bankruptcy order and had no option but to dismiss the petition.