Callas and Callas and Anor

In the matter of *Callas and Callas and Anor*, Judge Altobelli of the Federal Circuit Court of Australia considered an application concerning the distribution of proceeds from the sale of a property. The dispute involved the First Respondent, who was bankrupt, and the Second Respondent, acting in relation to the bankrupt estate. The Applicant sought access to funds for legal costs.

The primary legal issue before the Court was whether the Second Respondent should be granted leave to apply the net proceeds of the sale of a specific property towards the legal and professional costs associated with the bankrupt estate and for the benefit of its creditors, with a specific amount to be retained for the Applicant's potential legal costs. The Court also had to determine the conditions and timeframe under which the Applicant could seek access to this retained amount.

Judge Altobelli reasoned that, with the exception of $25,000, the Second Respondent should be permitted to use the net proceeds from the sale of Property W for the benefit of the creditors of the bankrupt estate. The Court further ordered that the Applicant would have leave to file an application seeking access to the remaining $25,000 for her legal costs in continuing the present proceedings, provided this application was filed within 42 days. If the Applicant failed to do so, the Second Respondent was to file and serve a proposed Minute of Order and supporting evidence. The Applicant's application was made returnable before Judge Altobelli on 21 July 2016. The costs of the parties were reserved.