Donnelly, M.C. v Edelsten, G.W.

Case [1992] FCA 297


JUDGMENT NO. 293/ Q&:

IN THE FEDERAL COURT OF AUSTRALIA )
1
NEW SOUTH WALES DISTRICT REGISTRY j NO NG 421 of 1991
GENERAL DIVISION
B E T W E E N : 

MAX CHRISTOPHER DONNELLY

JAS TRUSTEE OF THE ESTATE OF GEOFFREY WALTER EDELSTENL

Applicant

A N D:

GEOFFREY WALTER EDELSTEN AND OTHERS

Respondent

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m: NORTHROP J

PLACE :  MELBOURNE

2 1 :AY 1992

m:  28 APRIL 1992 JRT OF
LIA
AL

IRY

EX TEMPORE REASONS FOR JUDGMENT

It appears that the application before the Court was issued in Sydney on 1 August 1991 pursuant to the Federal Court rules even though it appears on its face, and it has been confirmed, that the relief being sought is pursuant to the provisions of the Bankru~tcv Act 1966. This matter, apparently, was not adverted to by any of the parties nor by any Court which gave directions in the matter. Nevertheless there is a vital distinction between the jurisdiction and exercise of power by this Court under the Bankruptcv Act and other statutes.

and incidental powers thereto. It appears that this is a

The Court is a court of limited jurisdiction. It only has that jurisdiction which is conferred upon it by statute

matter that should have been brought in the Court exercising jurisdiction in bankruptcy because the first respondent is presently a discharged bankrupt but the events which are being sought to be investigated are events arising during and from his bankruptcy. Orders are being sought pursuant to the Bankruptcv Act. In those circumstances the jurisdiction, the forms and the procedures are all conferred by the Bankruptcy Act and the Bankruptcy Rules.

The matter has progressed to a stage where the matter is now ready for trial and was listed for hearing this morning. Although there is some suggestion that there may be issues arising as to just what the questions are before the Court, those questions can be dealt with no matter what the form of the proceeding is. But because of the jurisdictional point, it is my opinion that this is a case that should have been issued in the bankruptcy registry in the bankruptcy matter of Dr Edelsten. The procedures are different; Rule 102 of the Bankruptcy Rules, for instance, requires the application to be

Answering affidavits and affidavits in reply are all provided in a certain form. It should be supported by affidavits.

for. In the present case there are affidavits which have been filed both in support of and in opposition to the granting of the orders being sought. I see no irreparable damage or harm being caused to the parties by granting an amendment to enable this application to be treated as if it were an application in the bankruptcy matter of Dr Edelsten. I understand that that is matter No NB 497 of 1988. All documents thus should be filed with the Registrar of Bankruptcy and not with the Registrar of the Court. If that order is made, and I do make that order, I would also make an ancillary order that all the documents filed in this matter are to be treated as being filed in the bankruptcy matter and to be treated as if they

' had been filed pursuant to Bankruptcy Rules 102 and the

following Rules, and that all other procedures which have taken place are to be treated as being procedures under the Bankruptcy Rules.

The matter will then be ready for trial and I propose to proceed with the hearing of the trial immediately. Therefore I order that the applicant have leave to amend the application and all subsequent documents by treating it as an application under Rule 102, in bankruptcy matter No NB 497 of 1988. I direct further that all documents which have been filed in this matter are to be treated as being filed in the bankruptcy matter No NB 497 of 1988, and to be treated as part of the material presently before the Court in the exercise of its

jurisdiction in bankruptcy under the Bankruptcy Act.

I certify that this and the preceding two (2) pages are a true copy of the Ex Tempore Reasons for Judgment of the Honourable Mr Justice R.M. Northrop.

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Associate:  /Q ,+
Date : 
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Details
AGLC
Donnelly, M.C. v Edelsten, G.W. [1992] FCA 297
Case
[1992] FCA 297
Decision Date

CaseChat Overview and Summary

The case of Donnelly v Edelsten is before the Federal Court of Australia, specifically the New South Wales District Registry. The applicant, Max Christopher Donnelly, acting as trustee of the estate of Geoffrey Walter Edelsten, has applied for relief under the Bankruptcy Act 1966 against the respondent, Geoffrey Walter Edelsten, and others. The application was issued in Sydney on 1 August 1991, yet the relief sought pertains to the Bankruptcy Act. The court has highlighted a significant jurisdictional issue: the application should have been filed in the bankruptcy registry since the respondent is a discharged bankrupt, and the events in question occurred during his bankruptcy.

The legal issues before the court were whether the application should be allowed to proceed in the Federal Court or if it should be transferred to the bankruptcy registry. The court needed to determine if the jurisdiction of the Federal Court could be exercised in this matter and whether there was any prejudice to the parties by transferring the application to the appropriate registry. The court also had to consider the procedural requirements under the Bankruptcy Act and Rules.

In delivering the judgment, Justice Northrop held that the matter should have been filed in the bankruptcy registry because the jurisdiction, procedures, and forms are all governed by the Bankruptcy Act and Rules. Despite the application being filed in the Federal Court, Justice Northrop was of the opinion that no irreparable harm would be caused by allowing an amendment to treat the application as if it were filed in the bankruptcy registry. The court ordered that the application be amended to comply with the Bankruptcy Rules and that all documents filed in the Federal Court be treated as if they were filed in the bankruptcy matter. The matter was to proceed to trial immediately after the amendment.

Justice Northrop's decision ensures that the application is processed in accordance with the correct statutory and procedural framework, facilitating a fair and just resolution of the issues at hand.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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