BRETT RICHARD GEOFFREY HARRISON AS TRUSTEE OF THE PROPERTY OF ROBERT JOHN CHARLES CATTO, A FORMER BANKRUPT

This matter concerned an application by the trustee in bankruptcy of the property of Robert John Charles Catto, a former bankrupt, to the Federal Circuit and Family Court of Australia. The trustee sought an order to pay the remaining balance of the bankrupt estate's recovered property to a nominated creditor in priority over the admitted debts of all other unsecured creditors.

The central legal issue before the Court was whether it had the power under section 109(10) of the *Bankruptcy Act 1966* (Cth) to direct that a specific creditor receive priority payment from the bankrupt estate's remaining funds, notwithstanding the usual order of distribution to unsecured creditors.

Judge Dowdy considered the provisions of section 109 of the *Bankruptcy Act 1966* (Cth), which outlines the order of priority for the distribution of a bankrupt's property. The Court determined that section 109(10) grants the Court a discretion to make orders for the payment of the bankrupt's property in a different order than that prescribed by the preceding subsections, provided it is just and equitable to do so. In exercising this discretion, the Court weighed the circumstances of the case and the nature of the debts.

The Court made orders pursuant to section 109(10) of the *Bankruptcy Act 1966* (Cth), directing that the balance of funds held by the trustee be paid to the proved creditor Dr John Cox in priority over the admitted debts of all other unsecured creditors. This payment was to occur after the satisfaction of all costs, charges, and expenses of the administration of the bankruptcy, as fixed by section 109(1)(a) of the Act.