In Body Corporate 341188 v Kelly, a judgment debtor sought to overturn an Associate Judge's decision not to set aside a bankruptcy notice. The notice was in respect of a District Court judgment and a costs order obtained by the Body Corporate in a separate High Court proceeding. The debtor argued (among other grounds) that the notice was invalid because it was in respect of two judgment debts rather than one.
The Associate Judge had held that, while the starting point was that bankruptcy notices should be issued in respect of a single judgment debt, the court had the discretion not to set aside a notice in respect of more than one debt. However, that discretion would not be exercised when a debtor would be prejudiced by the inclusion of more than one debt.
The debtor did not seek to disturb that finding. Instead, it was argued that the debtor was prejudiced by the inclusion of two debts because he was not able to satisfy one of the debts (the costs order) and challenge the other (he had applied for a re-hearing of the dispute from which the District Court judgment arose). That argument was rejected by the Court on the basis that it had been open to the debtor to pay the costs order either before or after the 14 day period expired and to oppose adjudication based solely on his challenge to the District Court judgment.
See the judgment here.