Charan v Gleeson

Case [2012] FCA 675


FEDERAL COURT OF AUSTRALIA

Charan v Gleeson [2012] FCA 675

Citation: Charan v Gleeson [2012] FCA 675
Parties: USHA WATI CHARAN v BRUCE GLEESON
File number: NSD 821 of 2012
Judge: NICHOLAS J
Date of judgment: 19 June 2012
Catchwords: PRACTICE AND PROCEDURE – whether to make an order staying a sequestration order pending determination of the appeal
Legislation: Bankruptcy Act 1966 (Cth) s 52(3)
Cases cited: Bourke v Westpac Banking Corporation [2012] FCA 6
Charan v Gleeson [2010] FMCA 703
Davidova v Murphy [2009] FCA 601
Liprini v Liprini (No 2) [2011] FCA 1150
Re Schmidt; ex parte Anglewood Pty Ltd (1968) 13 FLR 111
Rigg v Baker (2006) 155 FCR 531
Totev v Sfar (2006) 230 ALR 236
Date of hearing: 19 June 2012
Place: Sydney
Division: GENERAL DIVISION
Category: Catchwords
Number of paragraphs: 14
Counsel for the Applicant: The applicant appeared in person
Counsel for the Respondent: J O’Connor
Solicitor for the Respondent: Gillis Delaney

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 821 of 2012

BETWEEN:

USHA WATI CHARAN
Applicant

AND:

BRUCE GLEESON
Respondent

JUDGE:

NICHOLAS J

DATE OF ORDER:

19 JUNE 2012

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.The interlocutory application filed 13 June 2012 be dismissed.

2.The respondent’s costs of the interlocutory application are to be taxed and paid out of the estate of Usha Wati Charan.  

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 821 of 2012

BETWEEN:

USHA WATI CHARAN
Applicant

AND:

BRUCE GLEESON
Respondent

JUDGE:

NICHOLAS J

DATE:

19 JUNE 2012

PLACE:

SYDNEY

REASONS FOR JUDGMENT

(Revised from Transcript)

  1. On 6 June 2012 Federal Magistrate Smith made a sequestration order against the estate of Mrs Charan.  The sequestration order was made on the application of the respondent, Mr Gleeson, who was a creditor of Mrs Charan and who was previously the trustee in bankruptcy of Mrs Charan’s son, Mr Prashant Charan. 

  2. On 13 June 2012 the applicant, Mrs Charan, filed a notice of appeal against the judgment of the Federal Magistrate.  On the same day Mrs Charan filed an interlocutory application seeking certain orders.  That application was accompanied by an affidavit made by her.  It is clear from what has been said by her today that what she really seeks (although no such order is referred to in the interlocutory application) is an order staying the sequestration order pending the determination of her appeal.  Mr Gleeson opposes the making of such an order. 

  3. There are eight grounds of appeal set out in Mrs Charan’s notice of appeal.  The principal relief sought is an order that “the creditor’s petition be set aside”.  There are a number of comments I make about the notice of appeal.  First, the Federal Magistrate delivered an ex tempore judgment, but his reasons for judgment were not available in revised form until 15 June 2012.  Hence, the notice of…

Continue reading Charan v Gleeson

Sign in free to access the full text

Details
AGLC
Charan v Gleeson [2012] FCA 675
Case
[2012] FCA 675
Decision Date

CaseChat Overview and Summary

In the Federal Court, Charan brought an appeal against Gleeson, who was the liquidator of a company. The dispute centred on whether an order should be made to stay a sequestration order pending the determination of the appeal. Charan sought a stay of the sequestration order, which had been imposed on the company, pending the outcome of the appeal. Gleeson opposed the application for a stay.

The court considered whether there were exceptional circumstances that warranted a stay of the sequestration order. The court noted that the decision to grant a stay was discretionary and that the court would consider factors such as the merits of the appeal, the likelihood of success, the potential harm to the appellant if the order was not stayed, and the public interest. The court found that the appeal did not present exceptional circumstances warranting a stay of the sequestration order.

Accordingly, the court dismissed Charan’s interlocutory application filed on 13 June 2012. The respondent’s costs of the interlocutory application were to be taxed and paid out of the estate of Usha Wati Charan, in accordance with Rule 39.32 of the Federal Court Rules 2011.

Orders

Orders of the court

1. The interlocutory application filed 13 June 2012 be dismissed.

2. The respondent’s costs of the interlocutory application are to be taxed and paid out of the estate of Usha Wati Charan.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.