Commonwealth Numbered Regulations

1991 No. 117 BANKRUPTCY RULES (AMENDMENT) - RULE 4

  4.1   Omit the rule, substitute:
Counter-claims, set-offs or cross demands

"10. (1) A debtor on whom a bankruptcy notice has been served may file an
application to the effect that he or she has a counter-claim, set-off or cross
demand of a kind referred to in paragraph 40 (1) (g) of the Act.

"(2) An application must contain details of the counter-claim, set-off or
cross demand, as the case requires, and the reasons why the debtor was unable
to set up the counter-claim, set-off or cross demand.

"(3) If a debtor files an application, the Registrar must consider whether, on
the face of it, the application:

   (a)  raises a counter-claim, set-off or cross demand; and

   (b)  gives sufficient particulars of the counter-claim, set-off or cross
        demand and of the reasons why the debtor was unable to set up that
        counter-claim, set-off or cross demand.

"(4) If the Registrar is satisfied that an application:

   (a)  raises a counter-claim, set-off or cross demand; and

   (b)  gives sufficient particulars of the counter-claim, set-off or cross
        demand and of the reasons why the debtor was unable to set up that
        counter-claim, set-off or cross demand; he or she must:

   (c)  fix a date, time and place at which the debtor may appear before the
        Court to satisfy the Court that he or she has the counter-claim,
        set-off or cross demand referred to in the application; and

   (d)  endorse a copy of the application with that date, time and place and
        return it to the debtor.

"(5) If the Registrar is not satisfied that an application:

   (a)  raises a counter-claim, set-off or cross demand; and

   (b)  gives sufficient particulars of the counter-claim, set-off or cross
        demand and of the reasons why the debtor was unable to set up that
        counter-claim, set-off or cross demand; he or she must endorse a copy
        of the application with the words 'Application insufficient-no case
        raised' and return it to the debtor.

"(6) When a debtor receives a copy of his or her application that has been
endorsed under subrule (4), the debtor must, as soon as practicable and not
less than 14 days before the date fixed by the Registrar, give a copy of the
endorsed application:

   (a)  to the judgment creditor specified in the bankruptcy notice; or

   (b)  to the solicitor for that judgment creditor; and to the debtor's
        solicitor.".