Deputy Commissioner of Taxation v Clyne, Peter Leopold & Ors Re Clyne, Peter Leopold Ex Perte Andrew, William Edward

[1983] FCA 290

I N THZ	TEDERAL	COURT	O F	AUSTRALIA	) )
GENE-	D I V I S I O N	) )

BANKRUPTCY	D I S T R I C T	)
f

O F THE STATE O€ NEW SOUTH WALES ) )

>ND THE AUSTIWLIAN CAPITAL TERRITORY ) NO. p4 of 1 9 8 3

BETWEEN THE DEPUTY CO>PIISSIONZR OF TLYATION

Applicant

- A r m PETER LEOPOLD CLi'TiE

Respondent

__ AMD THE OFFICI>L TRUSTEE I N B3Z;KRUPTCY

Xo. Lie38 of 1 9 8 3

- RE : LEOCOLD PETER CLYNE

EX PARTE: WILLIAM EDKARD A??DRE!t7

c o w l :	Beaumont, J.
DATED :	18 October, 1 9 8 3 .

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REASONS FOR JUDGXENT

On 4 January, 1983, the Deputy Comnussloner of

T a x a t l o n f i l e d , a p e t l t l o n s e e k l n y t h a t a s e q u e s t r a t l o n o r d e r

be made a g a i n s t t h e e s t a t e o f Mr. Clyne. A consenc. by

M r . O ' B r i e n t o ac t as t r u s t e e was f l l e d a t t h e same t m e .

On 1 7 Augus t , 1983, on the appl lca t ion of the Deputy Commssloner ,

Neaves, J . nade an o rder under 5 . 3 0 of t h e BankrGptcy Act, 1 9 6 6

( " t h e A c t " ) t h a t t h e O f f l c l a l R e c e i v e r take c o n t r o l of t h e

p r o p e r t y of t h e l u d g m e n t d c b t o r u n t i l f u r t h e r o r d e r . V a r i o u s

o t h e r o r d e r s were mzde, p a r t l y as a n c l l l a r y o r d e r s u n 6 e r s . 5 0 ,

and pa r t ly unde r s . 3 0 . Although appeals have been brougbt

a g a i n s t t h e s e o r d e r s , I h a v e b e e n x f o r m e d t h a t t h e s e a p p e a l s

wlll probably r2t be p rosecu ted l n t h e evei?ts whlch havc

happened. On 2 S e p t e n b e r , 1 9 6 3 , c e r t a m f u r t h e r o r d e r s icere

made by Neaves, J . by consen t bu t w l thou t admlss lons .

On 6 Septe?ber , 1983, Nr. C l y n e f l l e d a C e b t o r ' s

p e t i t i o n p u r s u a n t t o s . 5 5 rchich was accey;ted. The consent of

M r . Andrew t o z c t as t rus tee was f l l e d a t t h e szxe t lme .

On 13 September, 19S3, Xea~res, J. h e l d c h a t t h e

o r d e r s rnade by hlm on 2 and 13 Sep tember , 1983 r epaxe2 ope r -

a t i v e a c c o r d i n g t o r h e l r t e n o u r , n o c w i t i . s c a n d l n g t h e s t a t u t o r y

bankrup tcy occu r r i lg on 6 Sepcentber, 1923. Hls Honour a l so

var led one of t h e o r d e r s made by h13 on i 7 August, 1963.

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On 1 9 September , 1983, and subsecuent ly , the Deputy

Comniss loner p roceeded wi th the hear lng , before T.e, of h l s

p e t l t i o n t o g e t h e r w l t h h l s a p p l l c a t l o n f i l e 6 on 1 5 September,

1983 seeking I n t e r a l i a , a n o r d e r t h a t , lr. t h e e v e n t t h a t a

s e q u e s t r a t l o n o r s e r was made, t h e p r o p e r t y of t h e b a n k r u p t

v e s t e d l n Mr. Ar.dre-d b e d e c l a r e d t o b e vested i n Mr. O ' B r l e n

as t r u s t e e o f t h e es ta te of t h e b a n k r u p t . I n t h a t a p p l l c a t l o n ,

t h e Depu ty Commiss lone r a l so sough t t o r e s t r a in t he bankrup t f rom

o b t a i n m g c r e d i t a n d s o u g h t a n o r d e r f o r 6 e l l v e r y u p o f h l s

c r e d l t c a r d s . I n t h e l a c t e r c o n n e c t l o n , o n 2 6 Septernber, 1983,

I made c e r t a i n o r d e r s by consen t bu t w i thou t admiss ions .

On 7 October , 1983, I made a seques t r a t lon o rde r i zh l ch

was an teda ted as of 6 September, 1983. The bankrupt has appealed

a g a i n s t t h a t d e c l s i o n . I also dec la red chac Mr. Andrew was t h e

t r u s t e e of t h e escate of the bankrust . ?he Deputy Comnlssloner

h a s e p ? e a l e d a y a m s t t h a t d e c l s l o n . TJrqency havmg been c?emon-

s t r a t e d , I p r o p o s e t o o r d e r expedition of t h e a p i j e a l s a n d t o orcer

t h a t t h e p r e p a r a t i o n of appeal books be cilspensed wlth. I

u n d e r s t a n d t h a t	t h e a p p e a l s	?:l11	be	heard	on	2 6	and	2 7	October ,
1983.

Ir, the evencs whlch have happenec?, a number of a2pllc-

a t l o n s a r e now made: t h e b a n k x p t s e e k s the d l s c h a r g e of t h e

o r d e r s made by Neavcs, J . and c e r t a n o t h e r o r d e r s ; Mr. Andrex

s e e k s d l r e c t l o n s a n d o t h e r o r d e r s ; t h e O f f l c l a ! . F e c c l v e r seeks

t o b e d l s c k a r g e d f r o m f u r c h e r r e s p o n s l b l l l t y 19 the macter ; and

t h e Deputy Commissioner seeks, I n t e r a l l a , o r d z r s c o n t r o l l l n g

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t h e d l s p o s l t i o n of t h e p r o p e r t y a n d Income of t h e b a n k r u p t .

D u r m g t h e c o u r s e of a r g u n e n t , comiion ground emerqes

i n a number of areas on a holdlnz Sasls and , o f cou r se , "wi thou t

p r e j a d i c e " f o o t i n g . I n t h e e n d , t h e o n l y matter of r e a l c o n t e s t

b e t w e e n t h e p a r t i e s was t h e q u e s t l o n w h e t h e r , a s s u m l n g t h a t t h e

power t o a c t u n d e r s.50 st i l l r e m a i n e d , t h e o r d e r s made by

Neaves, J . should now be d i scha rged .

I n my o p i n i o n , g l v e n t h e c o n t r o l o v e r &e a f E a l r s of

the bankrupt a f fordec i by t h e o p e r a t i o n of the re1ever .c Provls lons

of t h e A c t t o g e t h e r w l t h t h e o t h e r i n t s r m r e s t r a l n t s now con-

s e n t e d t o , wl thout admlss ions , by t h e b a r k r u ? t , I ar;. of t h e vle7.;

t h a t t h e d l f f e r e n t r e s t r e l n z s lm-;osed 5y t h e o r d e r s of Xeaves, J .

are no l o n g e r a p p r o p r i a t e . I p r o p o s e t o o r d e r d l s c h a r g e of

t h o s e o r d e r s b u t a l s o t o 3a::e c h e o t h e r o r d e r s c o n t a m e d i n t h e

s c h e d u l e t o t h e s e r e a s o n s .

THE SCHEDULE

ORDERS

1. O r d e r t h a t t h e a p p e a l s l n chese nat ters be exped l t ed

and t h a t t h e p r e p a r a t l o n of appea l books be d l spensed w i th .

2 . O r d e r s i n terms o f pa ra s . 1, 2 , 3 , 4, 5 and 6 of

t h e a p p l i c a t l o n t o t h e C o u r t f i l e d h e r e m o n b e h a l f of Willlam

Edward Andrew on 1 4 October , 1 9 8 3 .

3. O r d e r t h a t t h e O f f i c l a l T r u s t e e l n B a n k r u p t c y ? a y

t o Wllllam Edward Andrew, a s t ru s t ee of t h e e s t a t e o f t h e

b a n k r u p t , a l l moneys h e l d b y h i m p u r s u a n t t o t h e o r d e r s n a d e

by Neaves, J. h e r e l n , t o b e h e l d by b i i l l l a n Edward Antirew t o

a b i d e t h e f u r t h e r o r d e r o f t h e C o u r t .

4 . Upon t h e b a n k r u p t u n d e r t a k i n g t o t h e C o u r t u n r ; l l

f u r t h e r o r d e r t h a t h e wlll n o t u s e t h e same f o r m y p u r p o s e

s x c e p t f o r b u s l n e s s p u r p o s e s , d i r e c t t h a t W l l l l a r n Edward Andrew

d e l i v e r t o t h e b e n k r u ; s t t h e c r e d l t c a r d s of the bankrup t now h e l d

by hlm.

5 . Orders u n t l l f u r t h e r o r d e r II? terms o f a l E e r n a t i v e

o r d e r s 1, 2 , 3 , 4 , 5 , 6 and 7 as submi t ted by t h e Deputy

Cornmissloner save t h a t l n orcier 1 " 2 5 2 " 1 s EO b e s u S s t l t u t e d

f o r " 3 0 % " .

6 . Reserve l i S e r t y t o a p p l y t o a n y p a r t y o n s u c h n o t i c e

as a JuZge of t h e Court s h a l l a l l ov .

l. Rese rve cos t s .