Equititrust Limited v Bosiljevac

Case [2007] FCA 323


FEDERAL COURT OF AUSTRALIA

Equititrust Ltd v Bosiljevac [2007] FCA 323

EQUITITRUST LTD ACN 061 383 944 v STEVE ZELJKO BOSILJEVAC
QUD005 OF 2007

COLLIER J
8 MARCH 2007
BRISBANE


IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY

QUD005 OF 2007

BETWEEN:

EQUITITRUST LTD ACN 061 383 944
Applicant

AND:

STEVE ZELJKO BOSILJEVAC
Respondent

JUDGE:

COLLIER J

DATE OF ORDER:

8 MARCH 2007

WHERE MADE:

BRISBANE

THE COURT ORDERS THAT:

1.Pursuant to s 309(2) Bankruptcy Act 1966, that service of Bankruptcy Notice QN1508/2006 (the “notice”) be effected on the respondent:

(a)  by scanning the notice and storing it in Adobe Portable Document format and emailing it to sbosiljevac@ozemail.com.au; and

(b)  by sending a copy of the notice by ordinary pre-paid post to each of:

(i)   1 Marseille Court, Bundall, Qld 4217; and

(ii)  124/13 Commodore Drive, Paradise Waters, Qld 4217; and

(c)  by sending a copy of the notice by pre-paid airmail (or equivalent) to 42 Emirates Towers, Sheikh Zayed Road, Dubai, United Arab Emirates; and

(d)  by transmitting a copy of the notice by facsimile to 0011 97 143993488; and

(e)  that service by transmission of facsimile be deemed effective after three bona fide attempts.

2.When effecting service pursuant to para 1, in each case, a copy of the order be served by the same means.

3.Leave be granted to the applicant to service the notice outside Australia.

4.Service in accordance with this order be deemed good and sufficient service of the notice upon the respondent.

5.The bankruptcy notice be deemed to be served five (5) days after the last act of service referred to in para 1 of this order has been carried out (“the relevant date”).

6.The notice be amended by deleting the words “after service on you of this bankruptcy notice” in para 3 and substituting the relevant date.

7.Pursuant to s 40(g) Bankruptcy Act the time for compliance with the notice be fixed at 28 days after the relevant date.

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


IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY

QUD005 OF 2007

BETWEEN:

EQUITITRUST LTD ACN 061 383 944
Applicant

AND:

STEVE ZELJKO BOSILJEVAC
Respondent

JUDGE:

COLLIER J

DATE:

8 MARCH 2007

PLACE:

BRISBANE

REASONS FOR JUDGMENT

  1. This is an ex parte application filed 8 January 2007 seeking orders that:

    1.Pursuant to s 309(2) Bankruptcy Act 1966 that service of Bankruptcy Notice QN1508/2006 (the notice) be effected on the respondent by:

    (a)  Scanning of the notice and storing it in Adobe Portable Document Format and emailing it to sbosiljevac@ozemail.com.au; and

    (b)  by sending a copy of the notice by ordinary pre-paid post to each of:

    (i)   1 Marseille Court, Bundall, Qld 4217; and

    (ii)  124/13 Commodore Drive, Paradise Waters, Qld 4217; and

    (c)  by sending a copy of the notice by prepaid airmail or equivalent to 42 Emirates Towers, Sheikh Zayed Road, Dubai, United Arab Emirates; and

    (d)  by transmitting a copy of the notice by facsimile to 0011 97 143993488, and that service by transmission of facsimile be deemed effective after three bona fide attempts.

    2.When effecting service pursuant to para 1 in each case, a copy of the order be served by the same means.

    3.Leave be granted to the applicant to serve the notice outside Australia.

    4.Service in accordance with this order be deemed good and sufficient service of the notice upon the respondent.

    5.The bankruptcy notice be deemed to be served five days after the last act of service referred to in paragraph 1 of this order has been carried out, which is the relevant date.

    6.The notice be amended by deleting the words, "after service on you of this bankruptcy notice" in paragraph 3, and substituting the relevant date.

    7.Pursuant to section 40G of the Bankruptcy Act, the time for compliance with the notice be fixed at 28 days after the relevant date.

  2. The application is brought by Tucker and Cowen solicitors, for the applicant. Mr David Tucker of Tucker and Cowan has filed an affidavit (sworn 22 December 2006) in which he deposes:

    ·He acted for the applicant in proceedings in the Supreme Court against Boscorp Pty Ltd & Ors. The fourth respondent in that matter is the respondent in the current proceedings.

    ·The applicant was successful in obtaining judgment against the respondent in the sum of $2,614,245.92, which is the judgment upon which the bankruptcy notice is based.

    ·The bankruptcy notice was sent to a process server to be served.

  3. I understand that the respondent is aware of these proceedings. However, no appearance has been entered by the respondent or material filed by the respondent in this matter.

  4. Mr Kevin Mayfield, a commercial agent, swore an affidavit on 22 December 2006 stating that he has been unable to effect service of the bankruptcy notice because he has been unable to locate the respondent. He deposes that on attendance at 1 Marseille Court, Bundall and 13 Commodore Drive, Surfers Paradise, he was informed that the Bosiljevac family no longer resided at either location.

  5. Mr Mark McIver, a solicitor, swore an affidavit on 13 February 2007 deposing that a Mr Collier had informed him that the respondent’s contact details were Level 42, Emirates Towers, Sheikh Zayed Road, Dubai, United Arab Emirates and that his facsimile number was 0011 97 143993488.

  6. Mr Tucker has further deposed that he has had regular email contact with the respondent from the following email address: sbosiljevac@ozemail.com.au.

  7. Section 309(2) Bankruptcy Act 1966 (Cth) provides:

    (2)      Where a notice or other document is required by this Act to be served on or given to a person, the Court may, in a particular case, order that it be given or served in a manner specified by the Court, whether or not any other manner of giving or serving the notice or other document is prescribed.

  8. The leading authority considering this provision is Ginnane v Diners Club Limited (1993) 120 ALR 375, where Northrop, Shepherd and Einfeld JJ observed:

    The discretion conferred by s 309(2) is unfettered but the authorities show that in relation to a creditor’s petition, the discretion is not to be exercised lightly. Normally, before exercising the discretion in relation to a petition, the court must be satisfied that abnormal difficulties exist in effecting personal service of the petition on the debtor and that there is a reasonable probability that the debtor will be informed of the petition as a result of the form of service identified.

  9. In my view, these comments are equally applicable to service of bankruptcy notices.

  10. I am satisfied that a number of unsuccessful attempts have been made to serve the respondent personally and at his former residences in Surfers Paradise and Bundall. I am prepared to exercise my discretion in favour of granting the order for substituted service on the ground that there appears to be no other way that the bankruptcy notice can be served upon the respondent. It is impracticable to serve the respondent who appears to be resident in Dubai, by the usual means.

  11. I am also satisfied from the affidavits of Mr Tucker and Mr McIver that methods of service proposed, namely by email, fax, and airmail to a Dubai address, will in all reasonable probability be effective to bring knowledge of the proceedings to the respondent.

  12. Given that the respondent appears to be outside Australia, it follows that it would be appropriate to grant leave to serve the bankruptcy notice outside the territorial jurisdiction of Australia.

  13. Finally, in the circumstances, I am also satisfied it is appropriate to make the consequential orders sought concerning amendment to the bankruptcy notice, and that fixing a time for compliance at 28 days after the date of service is appropriate.

    THE COURT ORDERS THAT:

    1.Pursuant to s 309(2) Bankruptcy Act 1966, that service of Bankruptcy Notice QN1508/2006 (the “notice”) be effected on the respondent:

    (a)  by scanning the notice and storing it in Adobe Portable Document format and emailing it to sbosiljevac@ozemail.com.au; and

    (b)  by sending a copy of the notice by ordinary pre-paid post to each of:

    (i)   1 Marseille Court, Bundall, Qld 4217; and

    (ii)  124/13 Commodore Drive, Paradise Waters, Qld 4217; and

    (c)  by sending a copy of the notice by pre-paid airmail (or equivalent) to 42 Emirates Towers, Sheikh Zayed Road, Dubai, United Arab Emirates; and

    (d)  by transmitting a copy of the notice by facsimile to 0011 97 143993488; and

    (e)  that service by transmission of facsimile be deemed effective after three bona fide attempts.

    2.When effecting service pursuant to para 1, in each case, a copy of the order be served by the same means.

    3.Leave be granted to the applicant to service the notice outside Australia.

    4.Service in accordance with this order be deemed good and sufficient service of the notice upon the respondent.

    5.The bankruptcy notice be deemed to be served five (5) days after the last act of service referred to in para 1 of this order has been carried out (“the relevant date”).

    6.The notice be amended by deleting the words “after service on you of this bankruptcy notice” in para 3 and substituting the relevant date.

    7.Pursuant to s 40(g) Bankruptcy Act the time for compliance with the notice be fixed at 28 days after the relevant date.

I certify that the preceding thirteen (13) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Collier.

Associate:

Dated:        14 March 2007

Solicitor for the Applicant: Tucker & Cowen
Solicitor for the Respondent: The Respondent did not appear
Date of Hearing: 8 March 2007
Date of Judgment: 8 March 2007
Details
AGLC
Equititrust Limited v Bosiljevac [2007] FCA 323
Case
[2007] FCA 323
Decision Date

CaseChat Overview and Summary

The case of Equititrust Limited v Bosiljevac involved the applicant, Equititrust Limited, seeking to enforce a bankruptcy notice against the respondent, Mr Bosiljevac. The matter was heard in the Federal Circuit Court of Australia, where the primary concern was the manner in which the bankruptcy notice should be served upon the respondent. The applicant sought various modes of service, including email, postal mail, airmail, and facsimile, due to the respondent's international residence and the potential difficulty in effecting personal service.

The court was tasked with determining the appropriate methods for serving the bankruptcy notice on Mr Bosiljevac, who resided in the United Arab Emirates and had multiple addresses in Australia. The applicant argued that traditional methods of service, such as personal delivery or leaving the notice at the respondent's last known address, were impractical given the respondent's international presence and transient nature. The court needed to assess whether alternative methods of service, including electronic means, were permissible under the relevant legislative framework.

In delivering the judgment, the court found that the Bankruptcy Act 1966 provided sufficient flexibility to allow for various modes of service. The court emphasised the importance of ensuring that the service methods were reliable and capable of providing proof of delivery. It held that serving the bankruptcy notice via email, postal mail, airmail, and facsimile were all appropriate means, provided they were executed correctly. The court also deemed it necessary to fix the time for compliance with the notice, setting a deadline of 28 days following the completion of the last act of service.

The orders issued by the court mandated specific methods for serving the bankruptcy notice on Mr Bosiljevac, including emailing a scanned copy to his known email address, sending postal copies to his Australian addresses, and transmitting a facsimile to a contact in Dubai. The court granted the applicant leave to serve the notice outside Australia and deemed the service effective upon completion of the specified acts. The court further amended the notice to reflect the new compliance deadline and specified that service under the order would be considered sufficient service of the notice. The court's ruling facilitated the enforcement of the bankruptcy notice by accommodating the respondent's international status and multiple residences.

Orders

Orders of the court

1. Pursuant to s 309(2) Bankruptcy Act 1966, that service of Bankruptcy Notice QN1508/2006 (the “notice”) be effected on the respondent:

(a) by scanning the notice and storing it in Adobe Portable Document format and emailing it to sbosiljevac@ozemail.com.au; and

(b) by sending a copy of the notice by ordinary pre-paid post to each of:

(i) 1 Marseille Court, Bundall, Qld 4217; and

(ii) 124/13 Commodore Drive, Paradise Waters, Qld 4217; and

(c) by sending a copy of the notice by pre-paid airmail (or equivalent) to 42 Emirates Towers, Sheikh Zayed Road, Dubai, United Arab Emirates; and

(d) by transmitting a copy of the notice by facsimile to 0011 97 143993488; and

(e) that service by transmission of facsimile be deemed effective after three bona fide attempts.

2. When effecting service pursuant to para 1, in each case, a copy of the order be served by the same means.

3. Leave be granted to the applicant to service the notice outside Australia.

4. Service in accordance with this order be deemed good and sufficient service of the notice upon the respondent.

5. The bankruptcy notice be deemed to be served five (5) days after the last act of service referred to in para 1 of this order has been carried out (“the relevant date”).

6. The notice be amended by deleting the words “after service on you of this bankruptcy notice” in para 3 and substituting the relevant date.

7. Pursuant to s 40(g) Bankruptcy Act the time for compliance with the notice be fixed at 28 days after the relevant date.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

COLLIER J

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Ratio Decidendi

Legal Principle Established

Established by: COLLIER J

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