Former federal treasurer Josh Frydenberg has dropped his court action over $410,000 in unpaid legal fees.
A bankruptcy case lodged against former constituent and climate activist Michael Staindl was due to be heard in the Federal Court in Melbourne on Thursday.
Mr Frydenberg had filed a creditor's petition for sequestration against Mr Staindl in May this year, just two days after formally conceding his defeat in Kooyong in the federal election.
Judicial Registrar Amelia Edwards said she received a request for an order, with consent of both sides, to dismiss the petition.
Both men and their lawyers were excused from attending court.
She made the order and, as further requested, made no order as to costs.
The original petition stemmed from Mr Staindl's 2020 challenge of the then-deputy Liberal leader's eligibility to sit in parliament over section 44 of the Constitution.
He questioned Mr Frydenberg's entitlement to Hungarian citizenship through his mother, whose family fled Europe after World War II.
Mr Staindl lost his case and was ordered to pay $410,000 of Mr Frydenberg's legal fees but had not paid.
