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ARTICLE · 24 AUGUST 2021

Proving Your Proof: The Onus Is On The Creditor

Corrs Chambers Westgarth
Corrs Chambers Westgarth
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Corrs Chambers Westgarth

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The onus of proof, for establishing that proofs of debt be accepted, is on the creditor lodging the challenge.

AustraliaInsolvency/Bankruptcy/Re-Structuring

This week's TGIF looks at a recent case in which it was determined that, when challenging the adjudication of a liquidator or administrator, the onus of proof, for establishing that proofs of debt be accepted, is on the creditor lodging the challenge.

Key Takeaways

  • The onus of proof, for establishing that proofs of debt be accepted, rests firmly on the creditor challenging the adjudication of the liquidator or administrator.

  • The rejection of a proof of debt should not be disturbed unless the Court is properly satisfied that the person relying on the proof of debt has discharged that onus. Proper and sufficient admissible evidence needs to be adduced.

  • The critical question is whether the debt concerned is a true liability of the company.

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