Druin Pty Ltd as trustee for the Druin No 3 Trust Trading as Harvey Norman Commercial v Ghasemi and Anor

Druin Pty Ltd as trustee for the Druin No 3 Trust trading as Harvey Norman Commercial (the applicant) brought proceedings against Ghasemi and another (the respondents). The matter came before Judge Humphreys of the Federal Circuit Court of Australia. The core of the dispute involved an application by the trustee in bankruptcy for review of a Registrar's decision, seeking orders regarding costs incurred by the trustee.

The court was required to determine whether the respondents had been served with the bankruptcy notice prior to the sequestration orders being made. Additionally, the court considered the trustee's application for various costs orders and the appropriate allocation of costs between the parties and the trustee.

Judge Humphreys granted the trustee leave to intervene in the proceedings. However, the trustee's application was ultimately dismissed. The court confirmed existing consent orders made between the applicant and respondents, and otherwise dismissed the creditor's petition. The court ordered that the respondents pay the trustee's costs for specific periods and in relation to a particular hearing, and indemnify the trustee for certain disbursements. Crucially, the court also ordered that the trustee pay the respondents' costs of the trustee's application, and that the parties and the trustee otherwise bear their own costs of the applications.