Does a restraining order over property stay the enforcement of judgment?
The Federal Court case of Sood v Crown Diagnostic Imaging Pty Ltd [2006] FCA 1721 deals with the question of whether a restraining order over property under the Proceeds of Crime Act 2002 (Cth) stays the enforcement of a judgment debt. Facts On 26 July 2004, the property of Dr Suman Sood (Sood) was frozen by an order obtained by the Commonwealth DPP under the Proceeds of Crime Act 2002 pending the outcome of criminal charges against Sood (Restraining Order). The Restraining Order prevented Sood from disposing of or dealing with her property. Crown Diagnostic Imaging Pty Ltd (Crown) was a creditor of Sood. On 10 September 2004, Crown obtained judgment in the Local Court against Sood for an unpaid debt of $59,013.05 (Judgment). In May 2005, Crown proceeded to enforce the Judgment by issuing a bankruptcy notice on Sood which Sood failed to comply with. At the bankruptcy hearing in the Federal Magistrates Court, Sood argued that the Restraining Order effectively stayed the enforcement of t
