PICTURE NIC ELLIS   25 FEBRUARY 2011   THE WEST AUSTRALIAN   FAIRFAX ONLINE AND AUSTRALIAN FINANCIAL REVIEW OUT Pankaj Oswal talks to the media on The Maldives.
PICTURE NIC ELLIS 25 FEBRUARY 2011 THE WEST AUSTRALIAN FAIRFAX ONLINE AND AUSTRALIAN FINANCIAL REVIEW OUT Pankaj Oswal talks to the media on The Maldives.

A bungled currency conversion has put the Commonwealth Bank back to the start in a campaign to bankrupt elusive businessman Pankaj Oswal.

Almost eight months after it began moves to have Mr Oswal bankrupted over a $4 million- plus debt guarantee, the bank has withdrawn its Federal Court bankruptcy petition after the former Burrup Fertilisers boss cried foul about the financier's paperwork.

Mr Oswal's legal team pointed out that in its original bankruptcy notice, the Commonwealth Bank had used an exchange rate from the wrong date in converting the debt from US dollars to Australian dollars.

The Supreme Court ruled in May last year that Mr Oswal owed the bank $US4.82 million as guarantor for a private company through which he owned a corporate jet.

The Australian Taxation Office had also joined the push for Mr Oswal to be bankrupted, but the Federal Court bankruptcy files have now been officially closed.

Yet Justice Tony Siopis left it open for Mr Oswal to resume challenges to orders made in the aborted proceedings if any party seeks to rely on them.

The tax office has taken a separate Federal Court action against Mr Oswal over more than $6 million in allegedly unpaid tax, interest and penalties from before Burrup Fertilisers hit financial trouble in late 2010.

The West Australian

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