Axess Debt Management Pty Ltd v Haykal, in the matter of Haykal (No 2)

This case involves a dispute concerning the costs incurred by a controlling trustee appointed under the Bankruptcy Act 1966 (Cth). The applicants, Axess Debt Management Pty Ltd, sought orders for the costs of the controlling trustee to be fixed by the Court and paid as a priority. The legal issues before the Court included whether it had the power to determine the proper remuneration of the controlling trustee, whether the procedure for fixing the fees of the controlling trustee was appropriate, and whether the costs claimed by the controlling trustee were incurred reasonably and were of a reasonable amount. Additionally, the Court was asked to decide if the costs should be paid as a priority.

The Court found that the controlling trustee's activities were within the scope of the powers authorised by s 50 of the Bankruptcy Act 1966 (Cth), and therefore, the costs claimed were incurred reasonably. The Court considered it appropriate to order that the remuneration of the controlling trustee be paid as a priority from the proceeds of the sale of the property. The Court also determined that the applicants' costs and 50% of the judgment debt should be paid as a priority from the bankrupt estates.

In summary, the Court found that the controlling trustee's costs were incurred reasonably and were of a reasonable amount. The Court ordered that the controlling trustee's costs be fixed at $51,159.04 and paid as a priority from the proceeds of the sale of the property. The First and Second Respondents were ordered to pay the applicants' costs of the proceeding to be agreed or taxed. Pursuant to s 109(10) of the Bankruptcy Act 1966 (Cth), the applicants' costs as taxed or agreed and 50% of the Judgment Debt of $150,042.89 were to be paid as a priority from the bankrupt estates.