Deputy Commissioner of Taxation v Wachjo

In the matter of Deputy Commissioner of Taxation v Wachjo, the Federal Circuit Court of Australia was tasked with determining a sequestration order against the estate of Robert Nitijudo Wachjo. The dispute centred on whether sufficient grounds existed to support the petition for sequestration based on the act of bankruptcy committed by Mr Wachjo, specifically his departure from Australia with the intent to defraud or delay his creditors. This case arose from a verified creditors' petition presented on 20 December 2004, alleging that Mr Wachjo had left Australia on 9 December 2002, remaining overseas with the intent to avoid his creditors, thereby committing an act of bankruptcy under section 40(1)(c)(i) of the Bankruptcy Act.

The court was required to address several legal issues, including whether the evidence presented was sufficient to prove that Mr Wachjo had indeed left Australia with the requisite intent and whether this constituted an act of bankruptcy. The court considered affidavits and other evidence, including an affidavit from Silvana Rokov, who confirmed that no record of Mr Wachjo being bankrupt or any pending bankruptcy petition existed in the records of the Insolvency and Trustee Service. The court meticulously reviewed the evidence to ascertain if the statutory requirements for a sequestration order were met.

The court found that the evidence was sufficient to establish the act of bankruptcy as alleged. It was satisfied that Mr Wachjo had departed Australia with the intent to defraud or delay his creditors, thus fulfilling the conditions under section 40(1)(c)(i) of the Bankruptcy Act. Consequently, the court granted the sequestration order against Mr Wachjo’s estate, confirming that the statutory requirements had been met. The court also ordered that the applicant's costs, including reserved costs, be taxed and paid from the respondent's estate in accordance with the Bankruptcy Act 1966 (Cth). The date of the act of bankruptcy was noted as 20 June 2004.