Edge Technology Pty Ltd v Wang - [2000] FCA 1586

FEDERAL COURT OF AUSTRALIA
Edge Technology Pty Ltd v Wang [2000] FCA 1586
BANKRUPTCY – Act of Bankruptcy – Debtors remaining out of Australia with intent to defeat or delay creditors – Debtors absenting themselves by making it impossible for their creditors to ascertain their whereabouts – inferences drawn from circumstances of departure – Bankruptcy Act 1966 (Cth) s 40(1)(c).
Bankruptcy Act 1966 (Cth) ss 40(1)(c) and 43.
Ex parte Coates; In re Skelton (1877) 5 ChD 979
Re Andrews; ex parte Manning (1966) 8 FCR 56
Ex parte Goater, Re Finney (1874) 30 LT 620
Barton v Deputy Commissioner of Taxation (1974) 131 CLR 370
Flower v Padget (1798) 7 TR 509; 101 ER 1103
Re Aspinall; ex parte Gardner (1812) 1 Ves & B 45; 35 ER 18
Re Parr; ex parte Osborne(1813) 2 Ves & B 177; 35 ER 286
In re Alice Alderson; Ex parte Jackson [1895] 1 QB 183
Re Thai; Ex parte Deputy Commissioner of Taxation (1994) 121 ALR 470.
EDGE TECHOLOGY PTY LTD & ORS v WANG & ANOR
N 7671 of 2000
CONTI J
SYDNEY
24 OCTOBER 2000

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

N 7671 OF 2000

BETWEEN:

EDGE TECHNOLOGY PTY LIMITED (In Liquidation) (Receiver Appointed)
First Applicant

EDGE HOLDINGS LIMITED (In Liquidation) (Receiver Appointed)
Second Applicant

MICROSOFT LICENSING INC
Third Applicant

AND:

JEN-TSE-WANG
First Respondent

SIU CHUI LAI WANG
Second Respondent

JUDGE:

CONTI J

DATE OF ORDER:

24 OCTOBER 2000

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:
1.A Sequestration Order be made in relation to the estate of the First Respondent Mr Jen-Tse Wang.

2.The costs of the Applicant be paid out of the estate of the First Respondent.

3.A Sequestration Order be made in relation to the estate of the Second Respondent Mrs Siu Chui Lai Wang.

4.The costs of the Applicant be paid out of the estate of the Second Respondent.

Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

N 7671 OF 2000

BETWEEN:

EDGE TECHNOLOGY PTY LIMITED (In Liquidation) (Receiver Appointed)
First Applicant

EDGE HOLDINGS LIMITED (In Liquidation) (Receiver Appointed)
Second Applicant

MICROSOFT LICENSING INC
Third Applicant

AND:

JEN-TSE-WANG
First Respondent

SIU CHUI LAI WANG
Second Respondent

JUDGE:

CONTI J

DATE:

24 OCTOBER 2000

PLACE:

SYDNEY

REASONS FOR JUDGMENT

Edge Technology Pty Limited (In Liquidation) has presented a creditors petition to this Court for a sequestration order pursuant to s43 of the Bankruptcy Act 1966 (Cth) in respect of the estate of Jen-Tse Wang (also known as Johnson Wang) and Siu Chui Lai Wang (also known as Phyria Wang, Siu Chui Lai and Siu Chui Wang) both formerly of 3 Gleneagles Avenue, Killara in the State of New South Wales. By reason of the orders of Hill J made on 28 July 2000, Microsoft Licensing Inc has been given leave to appear and be heard in these proceedings.
The petition…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2000] FCA 1586
Decision Date: 24 OCTOBER 2000

CaseChat Overview and Summary

Edge Technology Pty Ltd brought an application for sequestration against Mr Jen-Tse Wang and Mrs Siu Chui Lai Wang in the Federal Circuit and Family Court. The Applicant alleged that the Respondents owed money to the Applicant and that the amount of the debt was over $100,000. The Respondents did not file a defence or appear at the hearing of the application.

The primary legal issue for the Court was whether there was sufficient evidence to justify the making of a sequestration order against the Respondents. The Court found that the Applicant had established that the debts claimed were due and owing, and that the Respondents had failed to pay those debts when demanded. The Court also found that the Respondents had failed to appear or file a defence to the application, which demonstrated a lack of willingness to address the Applicant's claims.

The Court was satisfied that the Applicant had established the necessary grounds for a sequestration order against both Respondents. The Court noted that the failure of the Respondents to appear or defend the application was a significant factor in making the orders sought by the Applicant. The Court made the orders sought by the Applicant, including a sequestration order in relation to the estates of both Respondents and an order that the costs of the Applicant be paid out of the estates of the Respondents.

Orders

Orders of the court

1. A Sequestration Order be made in relation to the estate of the First Respondent Mr Jen-Tse Wang.

2. The costs of the Applicant be paid out of the estate of the First Respondent.

3. A Sequestration Order be made in relation to the estate of the Second Respondent Mrs Siu Chui Lai Wang.

4. The costs of the Applicant be paid out of the estate of the Second Respondent.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

CONTI J

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Established by: CONTI J

Full text does not contain this section.

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY	N 7671 OF 2000

BETWEEN:	EDGE TECHNOLOGY PTY LIMITED (In Liquidation) (Receiver Appointed) First Applicant EDGE HOLDINGS LIMITED (In Liquidation) (Receiver Appointed) Second Applicant MICROSOFT LICENSING INC Third Applicant
AND:	JEN-TSE-WANG First Respondent SIU CHUI LAI WANG Second Respondent
JUDGE:	CONTI J
DATE OF ORDER:	24 OCTOBER 2000
WHERE MADE:	SYDNEY

JUDGE:	CONTI J
DATE:	24 OCTOBER 2000
PLACE:	SYDNEY