Dudley (Trustee) v Zarb

Case [2024] FCA 108


FEDERAL COURT OF AUSTRALIA

Dudley (Trustee) v Zarb [2024] FCA 108

File number: WAD 188 of 2023
Judgment of: BANKS-SMITH J
Date of judgment: 20 February 2024
Catchwords: BANKRUPTCY - application by trustee in bankruptcy for orders that the bankrupt vacate and give possession of property and for other ancillary orders - orders made - conditional consent - undertaking given by trustee to defer enforcement for identified period
Legislation:

Bankruptcy Act 1966 (Cth) ss 19, 30, 58, 77, 134

Transfer of Land Act 1893 (WA) s 234

Cases cited:

Coshott v Prentice [2014] FCAFC 88; (2014) 221 FCR 450

Lo Pilato (Trustee), in the matter of Ghougassian (Bankrupt) v Ghougassian (No 3) [2022] FCA 1532

Division: General Division
Registry: Western Australia
National Practice Area: Commercial and Corporations
Sub-area: General and Personal Insolvency
Number of paragraphs: 28
Date of hearing: 20 February 2024
Counsel for the Applicant: Mr YS Wee
Solicitor for the Applicant: Jackson McDonald
Counsel for the Respondent: Ms KA Parker
Solicitor for the Respondent: Greenstone Legal

ORDERS

WAD 188 of 2023
BETWEEN:

GREGORY BRUCE DUDLEY AS TRUSTEE OF THE BANKRUPT ESTATE OF ANDREW JOSEPH ZARB

Applicant

AND:

ANDREW JOSEPH ZARB

Respondent

ORDER MADE BY:

BANKS-SMITH J

DATE OF ORDER:

20 FEBRUARY 2024

THE COURT ORDERS THAT:

1.Pursuant to s 19(1)(f), s 30(1)(b), s 77(e), s 77(g) and s 134(1)(a) of the Bankruptcy Act 1966 (Cth):

(a)within 90 days -

(i)the respondent deliver up to the applicant vacant possession of the property located at 11 Rollo Court, Kinross, Western Australia, being Lot 2092 on Deposited Plan 26722 and being the whole of the land described in Certificate of Title Volume 2213 Folio 877 (Property);

(ii)the respondent deliver up to the applicant all keys to the building and improvements on the Property;

(iii)the respondent deliver up to the applicant all manuals, instructions and warranty documents relating to improvements on the Property; and

(iv)the respondent remove from the Property all vehicles, rubbish, and chattels which have not vested in the applicant (personal property).

(b)In the event that the respondent fails to comply with order 1(a)(iv), the applicant is empowered to remove and dispose of the personal property as he sees fit.

2.The applicant is appointed as trustee for the sale of the Property.

3.The proceeds of sale of the Property be paid to the applicant and applied:

(a)first, in payment of the costs and expenses incidental to the sale of the Property;

(b)second, to discharge an encumbrance according to its priority; and

(c)third, to the bankrupt estate of the respondent.

4.The applicant undertakes that he will not enforce orders 1 to 3 for a period of at least 3 months from the date of these orders.

5.The respondent is to pay the applicant's costs of the 14 December 2023 hearing fixed at $500.

6.The applicant's costs of this application be paid out of the bankrupt estate of the respondent.

7.The parties have liberty to apply.

Note:   Entry of orders is dealt with in Rule 39.32 of…

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Dudley (Trustee) v Zarb [2024] FCA 108
Case
[2024] FCA 108
Decision Date

CaseChat Overview and Summary

The matter of Dudley (Trustee) v Zarb came before the Court concerning a dispute over property held by the bankrupt, Mr. Zarb. The trustee in bankruptcy, Mr. Dudley, sought orders for the vacant possession of property located at 11 Rollo Court, Kinross, Western Australia, as well as ancillary orders related to the property and personal items within it. The trustee also sought to have the property sold and the proceeds applied in a specific manner.

The legal issues before the Court included whether the trustee was entitled to immediate possession of the property and the removal of personal items, as well as the appropriate method for selling the property and applying the proceeds. The Court had to consider the statutory provisions of the Bankruptcy Act 1966 (Cth) and the circumstances of the case to determine these matters.

In making its decision, the Court noted the statutory powers of the trustee under the Bankruptcy Act 1966 (Cth) and the need for the bankrupt to comply with orders for possession and sale of property. The Court granted the trustee's application, providing specific orders for the delivery of vacant possession, keys, documents, and removal of personal property. The Court also appointed the trustee as the agent for the sale of the property and directed that the proceeds be applied to costs, encumbrances, and the bankrupt estate. The Court further deferred enforcement of these orders for a minimum of three months and set the costs of the proceedings. The respondent was directed to pay the trustee's costs of the hearing and application.

Orders

Orders of the court

1. Pursuant to s 19(1)(f), s 30(1)(b), s 77(e), s 77(g) and s 134(1)(a) of the Bankruptcy Act 1966 (Cth):

(a) within 90 days -

(i) the respondent deliver up to the applicant vacant possession of the property located at 11 Rollo Court, Kinross, Western Australia, being Lot 2092 on Deposited Plan 26722 and being the whole of the land described in Certificate of Title Volume 2213 Folio 877 (Property);

(ii) the respondent deliver up to the applicant all keys to the building and improvements on the Property;

(iii) the respondent deliver up to the applicant all manuals, instructions and warranty documents relating to improvements on the Property; and

(iv) the respondent remove from the Property all vehicles, rubbish, and chattels which have not vested in the applicant (personal property).

(b) In the event that the respondent fails to comply with order 1(a)(iv), the applicant is empowered to remove and dispose of the personal property as he sees fit.

2. The applicant is appointed as trustee for the sale of the Property.

3. The proceeds of sale of the Property be paid to the applicant and applied:

(a) first, in payment of the costs and expenses incidental to the sale of the Property;

(b) second, to discharge an encumbrance according to its priority; and

(c) third, to the bankrupt estate of the respondent.

4. The applicant undertakes that he will not enforce orders 1 to 3 for a period of at least 3 months from the date of these orders.

5. The respondent is to pay the applicant's costs of the 14 December 2023 hearing fixed at $500.

6. The applicant's costs of this application be paid out of the bankrupt estate of the respondent.

7. The parties have liberty to apply.

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

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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