Agostino, Salvatore v Jackson, John Henderson

[1983] FCA 246

C A T C H W O R D S

Bankruptcy - Sequestration Order - Creditor's Petition accompanied

by consent to act as trustee - Debtor's Petition - Whether Official

Trustee or registered trustee appointed by force of law.

BANKRUPTCY ACT 1966 SS.55(3), 55(4A), 260(1) (C) (i), 156A(3)

RE: SALVATORE AGOSTINO EX PARTE: JOHN HENDERSON JACKSON

as trustee of the property

of Salvatore Agostino

Applicant A bankrupt

Fisher 3. Adelaide

I	5 September 1983.
I

R E

3.

T h e r e g l s t e r e c l t r u s t e e s o u g h t directions from t h i s C o u r t

a s t o w h e t h e r he or t h e O f f l c l 3 l T r u s t , e e ln B a n k r u p t c y ( ' t h e

O f f l c l s l Truster ' ) 1s t h e t r u s t e e of t h e e s t a t e of t h e b a n k r u p t .

T h e q u e s t l o n 3 r 1 s e s In t h e f o l l o w l r l g c l r c u n l s t s n c e s .

O n 8 F e h r u a r y l 9 8 3 the r e g i s t e r e d t r u s t e e g a v e t o a

J l ~ d r j m e n t c r e d l t o r C h a r l e s P a r s u n s ( S . A . ) P t y . L t d . , 3 c o n s e n t t o

a c t as t r u s t e e of t h e e s t a t e s of s u c h o f t h r e e d e b t o r s , o n e of

whom was t h e b a n k r u p t , 3 s migh t become bank l sup t . T h l s c o n s e n t

was g i v e n ~n a c c o r d a n c e w l t h form 30H of t h e S c h e d u l e t o t h e

Rules u n d e r t h e Bankr ,up tcy ,Act 19GG ( ' t h e Act') as f o l l o w s :

' T H E B A N K R U P T C Y A C T ,1?Gb

CONSENT TO ACT AS TRUSTEE

IN THE FEDERAL COURT OF AUSTRALIA )

SOUTH AUSTRALIA UlSTHJCT REGISTRY 1

G E N G R A L	51 IU	IS I O N	1 No.112	of	1383
)

B p y K H U P T C Y IlISTnlCT 11F THE S,l'ATE,.,OF)

)

SOUT-H PUSTRALIA )

r e : U INCENT F A Z Z A R L a n d

S A R A F A Z Z A R l a n d

M R . S. AGOST ItjO

C r e d l t o r

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e x p a r t e CHARLES PARSONS

( S . A . ) PTY. LTD.

I , J O H N HENUERSON JACKSON o f 173 W a k e f i e l d S t r e e t ,

l

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A d e l a l d e i n t h e S t a t e of S o u t h A u s t r a l i a C h a r t e r e c l

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. . 3.

c ’ . .

A c c o u n t a n t b e i n g a r e g l s t e r e c l t r u s t e e w l t h l n t h e

mean lnq o f s e c t i o n 5 o f t h e B a n k r u p t c y Act 19GG,

h e r e b y consent t o a c t as t h e t r u s t e e of t h e J o l n t

!

and s e p a r a t e e s t a t e o f s u c h o f the d e b t o r s V I N C E N T

F A Z Z A F I , S A R A E A Z Z A H I a n d M R . S. AGOSTINQ as may

becon le ba r lk rup t s o r LP o n l y o n e of then) becolnes a

tvar lkrupt , a s t r u s t e e of t h e e s t a t e o f t h a t d e b t o r .

DATED t h i s 8 t h d a y	o f	F e b r u a r y ,	1 9 8 3 .
Manager
........ ........ .....

0 c c u p a t . l o n o f w i t n e s s (signed)

9 lion Terrace J o h n H. J a c k s o n

M o r p h e t t v l l l e S.A. 5 0 4 3 Registered Trustee

........ ........ .....

Adcl ress of W l t n e s s “

T h l s c o n s e n t was f i l e d w i t h t h e l l e g l s t r a r on 9 F e b r u a r y 1983

a t t h e time when t h e J u d g n l e n t c r e d l t o r p r e s e n t e d a p e t l t l o n b e ~ n g

_. - - -

m a t t e r	No.	1 1 2 of	1983	a g a l n s t t h e t h r e e d e b t o r s .	I t	a p p e a r s	-3	f...
5::

t h a t n e i t h e r t h e c r e d l t o r ’ s p e t i t i o n n c r l . t h e c o n s e n t of t h e

registered t r u s t e e w a s s e r v e d or1 t h e b a n k r u p t .

On 24 February 1983 t h e b a n k r u p t r e s e n t e d t o h e

R e g i s t r a r a d e b t o r ‘ s p e t l t i o n being loatter No. 138 o f 1983

p u r s u a n t t o t h e p r o v i s i o n s o f 5.55 o f t h e Act. A t t h e salne time

h e s w o r e an affidavit v e r i f y i n g h r s s t a t e m e n t of a f f a l r s a s

c)

f o l l o w s :

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4.

That t h e S t s t e n l e n t o f Affairs a n n e x e d t o t h l s

s f f l d a v l t a n d c o n s i s t i n g o f S h e e t s r l u r b e r e d 1 t o

7 l n c l u s l v e c o n t a i n s , t o tile b e s t of n~y knowledjge

a n d b e l i e f , a t r u e snd c o m p l e t e s t a t e m e n t of s y

a f f a i r s a s aL t h e 1 4 t h d a y o f February 1983.

T h a t in v iew of t h e s t a t e n l e n t a f o f a i r s

a b o v e r n e n t i o n e d I b e l l e v e t h a t t h e v a l u e o f t h e

p r o p e r t y o f nllne w h l c h y v i r t l - l e o f S e c t i o n l l G

o f t h e Act would be d l v l s i b l e anlong my c r e d ~ t o r s

I f my p e t l t i o n b e a c c e p t e d , I S l e s s t h a n $ 1 0 , 0 0 0 .

I know the f a c t s deposed here in o f my own

knowledge .

T h e s t a t e m e n t o f a f f e l r s anne::ed t o t h l s a P f 1 d a v ; t p u r p o r t e d t o

c l i s c l o s e l l a b l l i t i e s t o t s l l i n g 'blS,139.3G 3nd no asse ts .

0

* . . 5 .

In r e l i a n c e n o d o u b t u p o n p a r a q r a p h ( 2 ) o f t h e a f f i d a v i t

t h e H e q i s t r 3 r a c c e p t e d t h e p e t l t l o n a n d a s a reSlJlt s . 5 5 ( 3 ) o f

t h e Art t o o k e f f e c t . I t 15 in t h e f o l l o w i n ? terms:

Y =L-

Jd(3) S u b J e c t t o s u b - s e c t i o n (4.4), w h e r e i t

a p p e s r s t o t h e Registrar t h a t a p e t i t i o n p r e s e n t e d

t o hlni u n d e r t h l s e c t l o r l is in a c c o r d a n c e w i t h

t h e p r e s c r i b e d form a n d t h a t t h e s t a t e m e n t of

a f f x l r s a c c o n 1 p a n y l n g t h e p e t l t l o n i s a l s o I r t

a c c o r d a n c e w l t h t h e p r e s c r i b e d form o r t h e Court

d i r e c t s ,	u n d e r	s u b - s e c t l o n	( 4 ) ,	t h e	Reg i s t r a r	t o
a c c e p t	t h e	petition-

( a ) t h e p e t i t i o n s h a l l b e a c c e p t e d b y t h e

R e g i s t r a r ,	who	s h a l l	e n d o r , s e	i t	accordingly;
a rl d

( b ) t h e r e u p o n , b y f o r c e of t h i s s u b - s e c t i o n ,

t h e d e b t o r b e c o m e s a b a n l c r u p t tly v i r t u e 01

t h e presentation or' t h e p e t i t i o n . '

Sec t ion 5 5 ( 4 A ) p r o v l d e s :

' 5 5 ( 4 A ) The R e g i s t r a r s h a l l n o t , u n d e r s u b - s e c t i o n ,

(3), a c c e p t a p e t l t l o n p r e s e n t e d t o him u n d e r t h i s

s e c t l i o n , b e l n g a p e t 1 t i o r l o t h e r t h a n a p e t i t i o n

in r e l a t i o n t o which 3 d i r e o t l o n u n d e r s u b - s e c t i o n

( 4 ) l5 in f o r c e , 3 n d t h e C o u r t s h a l l n o t , u n d e r

s u b - s e c t l o n ( 4 ) , d i r e c t t h e R e g i s t r a r t o a c c e p t

s u c h a petition, ~ u n l e s s -

( a ) a r e q l s t e r e d t r u s t e e h a s , u n d e r s u b - s e c t i o n

1 5 G A ( 1 ) , c o n s e n t e d t o act . as t h e t r u s t e e o f

t h e e s t a t e of t h e d f b t o r ; o r - _ _

( h ) i f p a r a g r a p h ( a ) ,does n o t a p p l y -

( 1 ) it a p p e a r s t o t h e Registrar, or t o t h e

C o u r t , as t h e c a s e may b e , t h a t h e v a l u e .

o f t h e p r o p e r t y o f t h e d e b t o r t h a t w o u l d

b e d i v i s i b l e a n i o n g s t h i s c r e d i t o r s b y

v i r t u e of s e c t l o n 1 1 6 i f t h e p e t i t i o n

were t o b e a c c e p t e d ( b u t n o t i n c l u d i n 3

a n y p r o p e r t y a c q u i r e d b y or d e v o l v i n g o n

him a f t e r t h e a c c e p t a n c e o f t h e p e t i t i o n

t h s t w o u l d b e so divisible) is l e s s t h a n

l b l O , O O O , o r p i f a n o t h e r 3 n i o u n t 1s f o r t h e

tlnle t o e i n g p r e s c r i b e d f o r t h e p u r p o s e s of

t h i s 5 u b - p a r 3 q r a p h y t h a t o t h e r a m o u n t ; or

m

(11) t h e d e b t o r s a t i s f i e s t h e R e g i s t r a r , or

t h e C o u r t , as t h e ca se may b e , t h s t h e

6.

..-

h a s , in a l l t h e c i r c u m s t a n c e s o f t h e

c a 5 e , t a k e n r e a s o n a b l e a l l s t p s t o

o t g t a l n from r e g i s t e r e d t r u s t e e s a c o n s e n t

u n d e r s u b - s e c t i o n 1 5 G A ( 1 ) in r e s p e c t o f

h i s e s t a t e b u t has b e e n u n l b l e t o o b t a i n

a n y s u c h c o n s e n t . "

S u b s e q u e n t l y t h e k e g l s t r a r i s s u e d , a t t h e r e q u e s t , I was

informed, of t h e a p p l l c a n t t h e f o l l o w r n g c e r t i f i c s t e p u r s u a n t t o

s . 2 G O ( l ) ( c ) ( l ) o f t h e Act.

" C E R T T F I C A T E OF THUS,TEESHlP

B A N K R U P T C Y ACT 1 9 6 6

peNt:Rurrcu ~ I S P F ~ C T OP T H E

STATE OF SOUTH AlJSTBALlA NO: 1.30 of 1 9 8 3

HE: SALVAPORE AGOSTINO

a bank r Iupt

T h i s is t o c e r t i f y t h a t J O H N HF.NDEHSON JACKSON of

1 7 3 Wakefield S t r e e t , A d e l a i d e in S t a t e t h e of I

. .-

S o u t h A u s t r a l i a , 15 by f o r c e of s u b - s e c t i o n 1 5 G A

( 3 ) of t h e B a n k r u p t c y A c t 19GG; t h e T r u s t e e o f t h e

e s t a t e of SALVATORE AGOSTINO who became bankrup t on . . P L

/!l?

1 4 t h t h e 1 9 8 3 , . F e b r u a r y , d a y o f II I

DATED t h i s 22n6 lddy o f A p r i l 1 9 8 3 .

(S igned)N.	O 'Connor
HE6 ISTRAR"

"

7 .

T h e a p p l l c a n t t h e r e u p o n en tered upon t h e a d n ~ l n l s t r s t l o n o f t h e

e s t a t e of t h e L a n k r u p t . H o w e v e r l n c o n s e q u e n c e o f t h e h e a r l n q in

t h l s C o u r t o f a n a p p l l c a t l o n 1 n t h e m a t t e r of PrederlcP C l o s e t h e

!

a p p l l c a n t	a p p l l r d	o	n	1	7	A u g u s t	1383 for	d l r e c t l o n s	c o n c e r n l n g	h l s
p o s l t l o n .

The	d i f f i c u l t l e s	w h l c h	a r l s e	111	t h l s	matter	a r e
\

p r i m s r l l y I n c o n s e q u e n c e o f t h e r r l e v s n t p r o v l s l o n s of s . l 5 G R ( 3 )

o f t h e Act w h l c h a r e as f o l l o w s :

"156.4(3). Where -

( a ) a t t h e t rn l e when a d e b t o r b e c o m e s a b a n k r u p t ,

a r e q i s t e r e d tr luslee h a s , ! u n d e r s u b - s e c t l o n

( 1 ) , c o n s e n t e d t o a c t as t h e t r u s t e e o f t h e

e s t a t e of t h e debtor a n d t h e consent. h a s n o t

b e e n r e v o l j e d , t h e r e q l s t e r e d t r u s t e e becomes ,

a t h a t t lnle, h y f o r c e o f t h l s u b - s e c t i o n ,

t h e t r u s t e e o f t h e e s t a t e or' t h e b a n k r u p t , a n d

(b) ..."

I considered t h e s e p r o v l s l o n s 1rl my r e a s o n s d e l l v e r e d or1

13 AuglJst 1903 In t h e m a t t e r of F r e d e r ~ c k . C l o s e t r a d l n g as F . B .

C , l o s $ T r a n s p o r t Ex p s r t e J o h n Raymond , ,Ab,bqtt. 1 n d e t e r m l n l n q

. __ .-

w h e t h e r a l l r e g i s t e r e d t r u s t e e s who h a v e 3 l v e n t h e l r c o n s e n t . -

.

beconle	by	v l r t u e t h e r e o f	t ru s t ees	of	t h e	e s t a t e	o f	t h e	b a n k r u p t .	, I
, I
-

Much of what I s a l d has a p p l l c a t l o n t o t h e c l r c u m s t a n c e s o f t h J s

m a t t e r . I n p a r t i c u l a r I ncieclded for many r e a s o n s w h l c h h a v e

e q u a l r e l e v a n c e h e r e t h a t t h e t r u s t e e who g a v e h l s c o n s e n t l n t h e

p r o c e e d i n g s In w h l c h t h e s e q u e s t r a t l o n o r d e r was made was t h e

s o l e t r u s t e e . I acknowledged t h a t t h l s W ~ S n o t b e c a u s e t h e

p a r t i c u l a r s t a t u t o r y p r o v l s l o h s c l e a r l y r e q u l r e d t h l s c o n c l u s l o n ,

0

t h o u g h t h e r e were indications t o t h l s e f f e c t , b u t b e c a u s e of t h e

. .. 8.

,

considerable p r a c t i c a l d l f f l c u l t l e s were I t o t h e r w l s e .

i

T h e s e p r a c t l c a l d l f f l c u l t l e s will a r i s e e q u a l l y h e r e , 1f

a l l t r u s t e e s , w h e t h e r I n t h l s S t a t e o r elsewhere a n d w h e t h e r 1n

p e t i t l o r t s w h l c h a r e c u r r e n t or h a v e l a p s e d , a n d who h a v e g l v e r t

c o n s e n t s . b e c o n l e by f o r c e of s.l5GA(3) t r u s t e e s o f t h e s t a t e .

I

T h e d l f f l c u l t l e s for them are c o m p o u n d e d w h e n t h e d e b t o r l o d g e s

h l s own p e t l t l o n a n d n o o r d e r 1s mede In operl c o u r t .

T h e r e 1s h o w e v e r a n a d d l t l o n a l d l f f l c u l t y u h l c h wlll

f a 1 1 o n t h e R e g l s t r a r . He 1s f o r b i d d e n , a n d In f a c t h a s no

~ u r l ~ d l c t l o r t , t o a c c e p t t h e d e b t o r ' s p e t l t l o n # u n l e s s e l t h e r a

I

r e q l s t e r e d t r u s t e e h a s c o n s e n t e d o r h e 1s s a t i s f i e d ' t h a t t h e

d e h t o r ' s d l v l s l b l e p r o p e r t y 1s less t h a n ' 6 1 0 , 0 0 0 or t h e d e b t o r

h e s b e e n u n a b l e t o o b t a l n t h e s e r v l c e s of a registered t r u s t e e .

I t w 3 6 c o n t e n d e d t h a t s . 5 5 ( 4 A ) s h o u l d b e r e a d , as l m p o s l n g o n t h e

R e g i s t r a r a n o b l l g s t l n n t o s a t l s f y h i m s e l f t h 2 t t h e r e 1s n o t

anywhere i n h l s R r g l s t r y or e l s e w h e r e a c o n s e n t o f a registered

t rus t ee . Only 1f h e so s a t l s f l e s h l r s e l f , i t w a s u b n l l t t e d , c a n

c o n s l d e r h e t h e size OS t h e d l v l s ~ b l e e s t a t e or w h e t h e r

r e a s o n a b l e s t e p s h a v e b e e n t a k e n b y t h e . d e b t o r t o o b t a l n t h e

r e l e v a n t c o n s e n t .

In	o p l n l o n	a y	t h l s would	Impose	on	t h e	R e g i s t r a r an	I
j_

a l m o s t i m p o s s i b l e b u r d e n , a n d a burden s u c h a s t h e u n s u c c e s s f u l

c o n t r a r y a r q u s e n t 113 Re E r a d e r l c k Closg would ln lpnse on t h e

0

t r u s t e e who c o n s e n t e d ln t h e p r o c e e d l n g s w h i c h 1 n t h e

s e q u e s t r a t i o n order was lo2dr . I t 1s my o p i n i o n t h a t t h e

I

R e g i s t r a r 1s e n t i t l e d t o a c c e p t t h e p e t l t i o n l f a n y o n e o f t h e

t h r e e c l r c u m s t a n c e s 1s p r e s e n t . He 1s e n t l t l e d , a s h e dld 1 n

t h i s m a t t e r , h ~ v i r l ~ s a t i s f i e d himself t h s t t h e vs lue of t h e

divisible p r o p e r t y 1s le55 t h a n .hlO,OOO, t o a c c e p t t h e p e t l t i o n .

If he 1s. n o t s o s a t l s f l e c l , t h e d e b t o r 1s r e q u l r e d t o t a k e s t e p s

t o o b t a i n t h e c o n s e n t o f a r e g l s t e r e d t r u s t e e . If he does o b t a l r l

t h i s c o n s e w t , s.55(414) e n t i t l e s t h e R e q l s t r a r a c c e p t . t o

I

A l t e r n a L i v e l y I f t h e d e b t o r , h a v i n g t a k e n r e a s o n 2 b l e s t e p s , , f a l l s

t o o b t a i n a c o n s e n t , h e R e g l i t r a r 1s Ilkewlse empowered t o

a c c e p t t h e p e t l t l o n . I t 1s o n l y If a c o n s e n t 1s o b t a l n e d a n d

f l l e d In t h e p r o c e e d i n g s when t h e p e t i t l o n 1s a c c e p t e d t h a t t h e

c o n s e n t i n g t r u s t e e i n t h o s e p r o c e e d l n q s b e c o l n e s h y f o r c e o f

s . 1 5 6 4 ( 3 ) t r u s t e e o f t h e e s t a t e . In t h e o t h e r c i r c u p s t a n c e s t h e

O f f i c i a l T r u s t e e 1s t r u s t e e o f t h e e s t a t e .

T h l s 1s t h e p o s t t l o n h e r e and t h e r e f o r e I msde on 5

S e p t e m b e r 1 9 8 3 t h e order d e c l a r l n q t h s t h e O f f l c l a l T r u s t e e 1s

- - ..

t h e t r u s t e e o f t h e e s t 2 t e o f the b a n k r u p t .

l I

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I certlfy that thls and the prgcedmg . page6 are a true copy of the ReasonD for . Judgment of Mr. Justice Fisher.

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