Proposed grounds 1 and 2
32 Proposed grounds 1 and 2 concern the date of discharge of bankruptcy pursuant to s 149(4) of the Bankruptcy Act (see [24] above).
33 Ms Soong submits that the primary judge erred at [20] when his Honour found that "19 June 2012 would be the day from which the period of 3 years is to be calculated, and 19 June 2015 would be the corresponding date three years after 19 June 2012 on which the period of 3 years would end".
34 It was not in dispute that for the purposes of calculating the period in s 149(4) the date on which the bankrupt lodges his or her statement of affairs, in this case 18 June 2012, is excluded: see s 36 of the Acts Interpretation Act. However, the parties disagree on the way in which the calculation should thereafter be carried out.
35 Ms Soong relies on the decision in Prowse v McIntyre (1961) 111 CLR 264 at 271 and 274 and submits that, although the decision in Prowse was referred to by the primary judge, his Honour only referred to that decision in a limited way. Ms Soong does not dispute that the three year period for the purpose of identifying the date of discharge from bankruptcy commences after the filing of her statement of affairs, starting on and including 19 June 2012, but submits that the three year period will end at the moment before midnight on 18 June 2015.
36 Ms Soong contends that under the common law and in accordance with s 36 of the Acts Interpretation Act fractions of a day are not usually counted and therefore 18 June 2012 is not included in the three year period. Ms Soong further contends that s 149(4) refers to the period of time, i.e. exactly three years, to arrive at a precise point in time for an event to occur, i.e. the time of discharge from bankruptcy, and that at the end of 18 June 2015 does not mean the beginning of 19 June 2015.
37 Ms Soong submits that the end of the three year period does not include the beginning or any part of the following day. Accordingly, the end of the three year period does not include any part of 19 June 2015 and, as a consequence, the date of automatic discharge of her bankruptcy was on 18 June 2015, albeit at the end of 18 June 2015, and certainly not on 19 June 2015.
38 The Trustee's written submissions refer in a number of places to s 149(2) of the Bankruptcy Act. However, given his oral submissions and the proposed grounds of appeal, I have proceeded on the basis that the references to s 149(2) are an error and that the Trustee intended to refer in each case to s 149(4) of the Bankruptcy Act.
39 On that basis the Trustee submits that the calculation of the period in s 149(4) can be approached in two ways but both illustrate that a full three year period, commencing on 19 June 2012 and ending with the whole of the day on 18 June 2015, must expire prior to discharge occurring:
(1) reference can be made to item 4 of s 36(1) of the Acts Interpretation Act which dictates that the three year period in s 149(4) of the Bankruptcy Act must include the day on which the period ends, namely 18 June 2015; or
(2) reference can be made to item 6 of s 36(1) of the Acts Interpretation Act. Insofar as discharge from bankruptcy can be seen as a period of time that commences after the period of bankruptcy, that period does not include the day which is the last day of the three year period, namely 18 June 2015 and thus the discharge occurs no earlier than 19 June 2015.
40 As set out above, Ms Soong relies on Prowse. That case concerned a claim for damages made out of time. The appellant, Mr Prowse, was born on 28 November 1930. The question before the High Court was when Mr Prowse reached the age of 21, which at the time was the age from which a person had capacity to sue, limited only by the expiration of the applicable limitation period, in that case six years. In answering that question at 270-1 Dixon CJ said:
The next question is, when did the plaintiff become of full age so that time began to run and the ultimate running out of the six calendar years could be determined? Now the first thing to observe is that at whatever hour of the day or night a man is born the whole of that day is reckoned for the purpose of calculating his age: … It follows that throughout the day of 27th November 1951 (i.e. from the midnight separating 26th from 27th November) the appellant Charles John Prowse was of full age. Inasmuch as s. 7 of the Limitation Act, 1623 gave him six more years exactly, that is six years of full capacity, within which he must sue, it was necessary that his summons in this case must issue on or before 26th November 1957. As it was issued on 27th November 1957 it was out of time.
41 To like effect at 271-2 McTiernan J found that:
The appellant's birthday being 28th November 1930 he completed twenty-one years of life on 28th November 1951 but, of course, it is not possible to say at what time by the clock on that day he did so. A day is not in law divisible and a person is deemed in law for the purpose of computing his age to have lived through the whole of the first day of his life. He would thus have been deemed to have attained full age with the expiration of the day preceding the twenty-first anniversary of his birth were it not for an ancient though artificial rule treating him as of full age throughout the whole of the day preceding that anniversary. As I understand the rule of law applicable to the matter a person is deemed to have become of full age coincidentally with the passing of midnight. In this case that point of time was when the date changed from 26th November 1951 to 27th November 1951. Then his status of infancy ceased and consequently at the earliest point of time included in the day indicated on the calendar by 27th November 1951 the appellant was sui juris. It follows that in computing time for the period of the statute the whole of 27th November 1951 must be included. The result is that the appellant issued the writ six years and a day after coming to full age; the writ was issued on 27th November 1957. The appeal should be dismissed.
42 At 274-5 Kitto J concluded that:
Accordingly, as it seems to me, the proposition to be accepted as positive law is that full age is attained as the day before the twenty-first birthday begins. If so, the whole of the day is after the coming to or being of full age - just as the whole of a piece of land with a western boundary is east of that boundary. In my opinion the correct view in the present case is that the disability of infancy fell from the appellant at the midnight which was at once the end of 26th November and the beginning of 27th November 1951, and that consequently the whole of 27th November 1951 was after the appellant's coming to or being of full age and must be counted in calculating the statutory six years.
43 In separate reasons Windeyer J came to the same conclusion.
44 The decision in Prowse has been applied on numerous occasions. For example, in State of New South Wales v Nikua (Final) [2021] NSWSC 1240, when referring to the date of expiration of an interim supervision order (ISO), Dhanji J said at [7]:
At the hearing, I was informed the ISO would expire on 2 October 2021. The most recent extension of the order was made on 27 August. That order renewed the ISO for a period of 28 days from midnight on 3 September. Midnight, is commonly (though not necessarily correctly) referred to as 12am. It divides one day from the next, and is, as a point without dimension, not part of either day (see Prowse v McIntyre (1961) 111 CLR 264 at 274, 278). In 24 hour time the point in time could be expressed as 24:00 on one day or as 0:00 on the next. But, the usual reference to 12am as midnight and 12pm as noon is more consistent with midnight being the first moment of the new day. A period of one day commencing from midnight on 3 September, on this basis, is all of 3 September up until the moment before 12 am on 4 September (cf. Interpretation Act 1987 (NSW), s 36(1); Acts Interpretation Act 1901 (Cth), s 36(1)). On this basis, I calculate a 28-day period from midnight on 3 September as concluding at the last moment of 30 September.
45 In State of New South Wales v Bou-Antoun [2022] NSWSC 513 Dhanji J considered whether to impose an ISO. At [84] his Honour relevantly said:
An ISO should be imposed. The conditions I regard as appropriate in all the circumstances of this case, based on the above reasons, are those set out in the Schedule to this judgment. It is not appropriate to order that the ISO commence from "midnight on 1 May 2022" as sought in the summons: see State of New South Wales v Nikua (Final) [2021] NSWSC 1240 at [7]. The defendant's sentence expires on 1 May 2022. He remains subject to the sentence for the entirety of 1 May. I apprehend what is sought is an order that commences at the conclusion of 1 May. The conclusion of 1 May is the commencement of 2 May. An order that commences on 2 May is temporally contiguous with the expiry of the defendant's sentence on 1 May. It is therefore sufficient to impose the order such that it commences on 2 May 2022.
46 Having regard to the terms of s 149(4) of the Bankruptcy Act, in my view Ms Soong was discharged from her bankruptcy on 19 June 2015. That is for the following reasons:
(1) as the parties accept, when calculating the three year period from the date on which Ms Soong filed her statement of affairs, the date of filing, 18 June 2012, is not included: see s 36(1) and item 5 of s 36(1) the Acts Interpretation Act;
(2) excluding the remaining hours of the date of filing of the statement of affairs and thus commencing the calculation from 19 June 2012, the period of three calendar years (with 365 days in each year), ends on 18 June 2015;
(3) the bankrupt, Ms Soong, was discharged from bankruptcy at the end of that period. That is at the end of 18 June 2015; and
(4) it follows that Ms Soong was a bankrupt for the whole of 18 June 2015 and her discharge became effective at the first moment on 19 June 2015.
47 Contrary to Ms Soong's submission, she was not discharged at the first moment of 18 June 2015. She was discharged at the end or conclusion of 18 June 2015 which was the very first moment of 19 June 2015. That is because although the period of three years ended on 18 June 2015, s 149(4) of the Bankruptcy Act provides that the bankrupt is discharged at the end of the period of three years. The end of the period must be the end of the day that is calculated to be three years from the date of filing of the statement of affairs by the bankrupt. That is, the bankruptcy continues for the whole of that day and the bankrupt is discharged at the end of that day i.e. at midnight, which is also the commencement of the following day. In Ms Soong's case that was 19 June 2015.
48 That is the same conclusion that the primary judge reached, albeit, it seems, by a different reasoning process, and is the date shown as Ms Soong's date of discharge from bankruptcy on the search of the National Personal Insolvency Index extracted on 16 May 2022 that was in evidence before me.
49 Thus, proposed grounds 1 and 2 of the draft NOA are not made out.