Bankruptcy Regulations 2021
PART 4
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PROCEEDINGS IN CONNECTION WITH BANKRUPTCY
Division 2
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Petitions
SECTION 16
APPLICATION FOR DAMAGES WHERE PETITION DISMISSED
16(1)
This section applies if: (a) a creditor ' s petition is presented to the Court in relation to a debtor; and (b) the Court, under subsection 50(1) of the Act, directs a trustee to take control of the debtor ' s property or makes another order in relation to the property; and (c) the Court subsequently dismisses the creditor ' s petition.
16(2)
The Court may, on application by the debtor within 15 business days after the day the petition is dismissed, order the creditor to pay the debtor an amount equal to the damage the Court assesses as resulting from the acts or omissions of the trustee in reliance on the direction or other order mentioned in paragraph (1)(b).
This section applies if: (a) a creditor ' s petition is presented to the Court in relation to a debtor; and (b) the Court, under subsection 50(1) of the Act, directs a trustee to take control of the debtor ' s property or makes another order in relation to the property; and (c) the Court subsequently dismisses the creditor ' s petition.
Note:
The trustee could be the Official Trustee or a registered trustee (see subsection 50(1) of the Act).
16(2)
The Court may, on application by the debtor within 15 business days after the day the petition is dismissed, order the creditor to pay the debtor an amount equal to the damage the Court assesses as resulting from the acts or omissions of the trustee in reliance on the direction or other order mentioned in paragraph (1)(b).
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