Ernest Abraham Siewertzs van-Reesema

CATCHWORDS

Bankruptcy - applicatlon for discharge

- ob~ectlon

the Offlcial Recelver

- failure to attempt to make

contribution to estate

- bankrupt a man of education and

experience - avoidance of making contrlbutlon to Estate

towards debts - frustratlng tactics.

Bankruptcy Act 1966 S. 149, s.150

Income Tax Assessment Act 1936 s.177

s . 2 0 8

RG:	ERNST ABP.AHAI4 SIENERTSZ VAN REESEW

No. 666 of 1979

McGregor J.

Sydney

4 January 1983

I N THE FEDERAL COURT OF AUSTRALIA )

)

BANKRUPTCY D I S T R I C T O F THE	j	No.	666 of 1979
\
STATE OF SOUTH' AUSTRALIA	1

RE:	ERNST AB1IAHAK SIENERTSZ VAN REESEKA

O R D E R

JUDGE:

i G z G r e g o r

DATE OF ORDER:	4 January 1 9 8 3 .
WHERE MADE:	Sydney

THE COURT ORDERS THAT -

1. The appl icat lon f o r discharge 1s refused.

2. Each side is t o pay Its own costs.

ikcGreqor G.

L s t e :

4 January 1983

L .

The bankruy.t,

born

I n 1931 , czmc tc Lourh A L S L U ~ L L ~

1962.

he became In t h a t

y e a r

t h e

S t a t e

I\.anager

thcl

i l r n

"Lncyc logaea la

E r l t t an lca"

remilned

t ha t

agpo ln tmenr

u n t l l t h e e r d

1965 when,

because

d l spu re o v e r t h e

paymenr

COmmlSSiOn,

h e

l e f t

t h e

e m ~ l o y

of t h a t firm.

he k s l n rc rmtc

t h s C f f i c l a l R e c e i v e r t h a r

had

t o

t a k e l e g a l a c t l o n

t o

recover

moneys

he believed t o b~

o!-lnc

h l m for ccmmlsslons.

Y h l S

a c t l o n

k a s

t a k e n

l n

Syeney.

I t

\"as

s e t t l e a

I n

1576 &ken he

rcce lved

the

ecu lvc lenr ;

7 , cCG

~ c u n d s .

? t ; l s

s u m

v,as

replacement of lncome

shoulci

have

keen

F"1c 6 s ccmmlsslor\..

The

se t r l emen t ,

hokebe r ,

$.as

e x p r e s s e d

l n

t e r m s

t h a t

l r

the

payment $,&S made he hould

p rcceed

wvlth

t h e

c c t l c n .

TlhlS,

t h e

i p p l l c a n t

s a l d .

I n

cv lccnce ,

was

because

the

~ e f ~ n c i ~ n t

\.h$

concerted

t h a t

k o u l 2

o r

mloht

s u e d f o r b y o t h e r s p r e s m e b l )

for

.?mounts

t h o u g h t s l m l l a r l y

t o be

oklng.

S . 7 ;

thocgh It may- be

t he

CGnvlc t lons

\ , e r e

r e f c r&ble

t o

tilt

a161115

cna

a b e r t l n g

s.lC

c f

t h a t

A-ct.

H e

k a s

a d v l s e a

t h a t

r e a s o n

o f

t h l s

c c n v l c t l o n

bas

d l s q u a l l f l e a

f r c m

belng

director of 6 company.

ke r e s i g n e d

d l r e c t o r s h l p s

o n

P.ovcmber

1974.

I t may be

cor rec t

t c

s&y

t h a t

b y

r e c s o n

o f

t h a t

conv ic t ion he

has

p r o h i b l t e e w l t h o c t t h e l e a v e o f t h e

C c u r t

from

be ing

d l r e c t o r

o r

F r o m o t e r

f r o m

t z k l n g

p a r t

directly

i n a l r e c t l y I n t h e management

ccmpany.

See

Corr,panles Act

1962-1974

(Soxth Australia) s.122.

1975 h e

c c n t r a c t e d

t c

purchase

s h o F p l n g

c e n r r e

a t

banksla Park from t h e

P e t i t l o n l n q

C r e e l t o r .

Sala

lr: eVldefiCL

be fo re

m e

t h a t

t h e

c o n t r a c t ,

k h l l s t

I n

hls

o h n

name,

s t a t e a

\,cs

f o r anC on

beha l f

company

t o

b e

fcrmed.

i n c

t k h t

t h e

company bvhs formed

and

slgned .i

t r a n s f e r and. has

t o t a l l y rea6.y

s e t t l e on

t he

f l r s t day

s e t t l e m e n t .

E u t h e

r e f u s e 6

t o s e t t l e

f o r

r e c s o n s

n o t

necessary

c o n s l d e r

h e r e .

I.. e l s p u t ~

a r o s e CS

t o

\ < h e t h e r

t h e

b a n k r u p t

s h o u l d

h i v e

s e t t l e d

o r

Las

e n t l t l t d

L 0

d e c l l n e

s e t t l e

t h a t

t r a n s a c t l c n

c n

t h e

L j a r t l c C l a r

u a y .

IIE

t o o k

a c t l o n

I n

t he

S u p r e m e

C o u r t

c l e l m l n s

( I n t e r

Zl3-a)

dec1 ; rE t l cn

t ha r

t he

con t r ac t

t x tveen

rhe

F E K L l e S

6btkC

; S

Septcnbcr 1975 \.as

stlll v s l l c +r.c cf

f G l l

e f f e c t

l c C s € L

CeV€et

t?,e

t l t l e cf

t h e

property.

The

a c t l c n

he;rc,

L y

Ih-

- - -

hal ters

T h e bznkrupt

l o s t ti-1s

& c t l c n .

c\rsc;t \ a s

removed

by o r l e r cf t h e C o u r t and

?,c \ ,ss

c r d e l c c

pay

tlx

COSts

the

then

vcndor

who beczme the

Pet1t lonlr .g

CreClccr .

i:n

ZpF€2l

b r c q h t by

t k e kaEhrupC

a g a l n s t

chat

Lec l s l cn

t c

t i , L

E u l i

5 .

Court cf the

Luprane

Court

South

Australia has, on 2 7 January

1976 ,

elsmlssed.

EankruFt

d l d n o t pay

t h e costs

a s o r e c r e d .

a l s o

gave

evzaence

to the

e f f t c t

t h h t

he sought

and

has

gran ted

l e a v e

t o

a p p e a l

t o

t h e

F r l v y

c o u r . c l l

a s a l n s t

th l s c c c i s l o n .

The

o rde r

e v e n t s

I n

th ls re5&rd 1 s r e f e r r e a t o I n the

jL.egntrnt

Sangs ter

J .

upon

the

a p p l l c a t l o n f o r

s e q u a s t r a t l o n

h l s e s t a t e

t o

h h l c h

wlll

r e f e r

i a t e r .

h o k f v e r ,

t h e

l e a v e

g r a n t e e

nGtLG

I n

t h a t

~ c d c p e n t

a s

l n c l u e l n g

t h e

c o n d l t l c n

t h a t

h e

should

p r € & a r e

t h e

r c c o r d

a n d

t r a n s c r l p t

o f

p r o c c e a l n g s

and

locst

t h e

same

k l t h

t h e

p r o p c r

o f f l c e r

cf Eer

k ] e s t y

I n C o u n c l l

v l t h l n

three

lendar

months .

t o l d me

t h a t che

r e c c r c

a n d

t r a n s c r l p t

h a v e n o t been

so lcdcjed.

I t kas

i n r e s F a c c

o f

t h e

u n p a l d

c o s t s

Of rhe

c a s e lr. the

supreme

Cour t

re fe r reu

a‘ccve

t h a t

s e q u a s t r a t l o n

o r d e r

!vas

sought

l n E

P e t l t l o n

F r e s e n t e c

b y

t k t

Pec l t l cn lng

Creditor,

Emmanoull

Clanlecs.

The

h e a r m s

the

C r e e l t o r ’ s ? e t i t i o n u a s

f l r s t apZ;arently

tc bc

Judse

Rqersor . .

1176 b&r.krupt

ObjECted

h n I ; res loing

\ , he rccpn h l s h o n c u

5b.lthdrcw.

The

hea r lng

L E S

ccee r t aken

Senss t e r

5 .

r t 0 l ; ~ k .

bankrupt ’ S

coc;csel

unsuccessfu l ly

sought

to have hint alsqc~llrq

r -

h i m s e l f .

The

bankrupt

had

filed. a Notlcf

cf CFFCSltlOn.

r f i t

~ r o c e e a l n g s l h s t e a f o u r

deys

and here

the

cccas lon

s u b n l s s l c n s

o n

v a r 1 0 ~ 1 s

t e c h n l c a l l e l e s

= S

a p p e a r s

f r o m

eht

h c e s c n s

f C r

Judqment

dellvcred.

c n l4 S ~ ~ t e n b e r

1579

S a n s s t e r J:

‘i’htre

else

der .1~1 b y

t h e

b a A r u p t

t h e service

hln. cf chc

bankruptcy

ho t ice .

171s

Eonour

re]actc.d

tf,e

evidence oi bEfikrc&c

and

o t h e r s

o n

t h l s

Fcli-:t

anc

accep ted t he ev l r i cnc€ o f o the r s t ha r

t h e

s e r v l c t

v z 5 e f f e c t & .

i n

h l s

k~sor . s

n c n t l o c t d

e z r l l e r

6r.G

"Van

Reesema

g a v e

h l s

e v l c e n c e

t l u e n t l y ,

ccnvlnclngly

and

wlth

cbvlous

CapZcLty t O

m a r s h a l l

f z c t s

ana

recognise

t h e

s i y n l f i c a n c e

Sucs t lons .

Unfo r tuna te ly

f rom

thc

v l e b

o f

c r e d l b l l l t y

h l s

actions

speak mcre

l o u e l y

w o r d s .

t h a n

h l s

c l e a r l y -

nas te rmlnc iec

L r .

Sumner

" m c a l c a l

c e r t l f i c a t e "

( e x h l b l t

C l )

a s

nere

a e v i c e I n

ald 0 5 an uneeservca

+d:curnment

the

three

a f f i d i - v l t s

( h l s

own,

C r .

Scmner ' s

and

COOmb€'s)

almee

a t r e f u t l c g

F r a y n e ' s

clam, t o

hzvmg

served

cocuments.

E€

cbvlous ly

prepareu

r e s o r t t o a n y p r o c e d c r e s

khlch

t h e

law

p e r m l t s

a n d

f o r

t h e

p u r F o s e s

h h l c h

t h e

t r u t h

c a n

s t r e t c h e d

a1tere.d

t o

s u i t n i s

own

e n c s ,

vh lch

encs

cu r ren t11

a ~ ~ e a r

t o be

GireCte6

a t

d e l a y l n s

r s t h e r

t h a n

d e t e r m l n l n g

lssues,

r e a l

o r

p r e t e n d e d . "

Sangs ter Z.

found

t h a t

t h e

P e t l r l o n l n g

Creclror

L E S

e n t i t l e e

t o

t h e

s e q u e s t r a r l o n

C r e e r

a n d

c o s t s

D u t

s r a n t c d

s t s y

Of execution o f

h l s

o r d e r s

for

2 1

days

a \ . a l t l n g

t h e

Outccmr

b a n k r u p t ' s

t h e n

pencilng

z p p l l c z t l o n

t o

t h c

F c l l

C o c r r

t h e

Supreme

C o u r t

S o u t h

k u s t r z l l e

f o r

f u r t h e r

s t a k

u i

Froceedlngs.	The	d e c l s l o n	of	Sangs ter	2.	1s r € F G r t € a	i n	(1979)
27 i iLh 505.

loan has not

for thcomlng.

Se t t lement

v,zs

Ce:ldycci

s t . v ~ ~ d 1

clmts;

anC

f l n a l l y

h e

k z s

t o l d

o n l y

$65C,GOC bas

a v + l l a b l e End

l e s s

favourable

terms

t h a n

a n t l c l p a t e d .

ciecllned

t c

t s k e

rl:e

o f f e r

t h e

l o a n ,

beceme

unable

s e t t l c

t h e

p u r c h c s e .

? h i s

1 s

bcc

one

many

Involvements

tke

bankrupt

c o r F o r a t e a c t l v l t y b u t

shows

the

magnl tude

of a

p r o ~ e c t l n whlcn

has

l n t e re s t ed

h imse l f .

I t

51ves

some

l n d l c a t l o n

\ .hht

might

t h e n a t u r e

h l s a c t l v l t l e s I n t h e

f u t m e 11

c r a n t e a

dlscharge

frcm bankruptcy.

hnd

1 s bLt

one

I n s t a n c e C L 5

company

wlth

\hose

formation

he has been ccncerned.

Agalns t

t h l s

s en tence

t he

bankrup t

EFFea led

t O

t h e

Supreme Cocr t .

11 June 15LG hohr J.

alsmlssee the a p g e a i .

H l s Eonour

I n t h e

r e a s o n s

f c r

h l s

]uZqment

r e f e r r e d t o t h e

“malfi

g r o m d ” of

appea l

ce lng

c e n l a l

t h e b a n k r L p t t h e t

hls

coLnse1

had

l n s t r u c t l o n s t o r e q u e s r t h e

c o u r t when

ser.teccln2

hlm

t o

t zkc

l n t c a c c o c n t

the

commlsslon

o t h e r c f f e n c t s , 1 . e .

e s

op~;osrd

t h e

F o s s l b l e

C o ~ m I I S s l o ~

o thc r

Of fences .

he fe r r lng

t o

t h t

evldence of bankrupt

and

the

person

bho

apFe3re.d

for

hln, ,

hchr

sal2

t h a t

coulZ

no t

acceFt

t he l r

F r o r e s t a t l c n s

leck

memory and

commuclcaticn

conccrnlng

the

Krtter.

Later ?,c SBIU

t h a t

t h e b a n k r u p t ’ s

! \ h o l e

a t t l t u d e

hac,

q u l t e c l e a r l y b e e n

Cne

conccmpt

f o r the l i r k :

t h a t

r h e

p t n s l t y

LES

h e l l

m c r l t e c .

in h s

a f f l d ~ v l t

& t e Z

J u l y

1962

I n t h e

F r c c e e a l c g s

k e i c r e

fie

rht

bankrl ;Ft

sa l6

From

t h l s

d e c l s l o n

unders tand

the

bankrupt

10 s z y h€

has

appealed

t o

t h e H q h C o u r t b u t d e s p l t e t h e l i F s e

t l m c t h a t

appcal

has

cot

ye t been heard .

1 Gctcber 1979 t h e

b z n k r u p t

f l l e d

h l t h

t h l s

C o u r t

h o t l c e

A p p e a l

a g a i n s t

t h e

S e q u e s t r a t l o n

C r c e r

o n

var1GUS

grouncis

l nc lud lna

t Y z t the

c a s e

mvolved

c c n s t l r u t l o n s i

i s s u e .

Af t e r

a hee r lng or. 11 Lecember

1979 the

EFpeal

!+SSr

Z L

Lecember

1 9 7 9 , alsrnlssec

f o r h a n t cf

FrosecLt loc .

See

LLR

p.525.

The

C o u r t

s a l d ,

l n t e r

alla, a t

p . 5 2 2 ,

t h a t

t h e r e

h a d

beer.

lnexcusable

delay

t h e p a r t

r h e a l ; F d l a n r ( t a n k r c p c ) ,

b r e a c h

by him of h l s

unde r t ak lng

t c t h e c o u r t and

o r the

o r d e r s of

t h e

c o u r t ;

znd

t h a t

n o t

s a t l s f l e d

t h a t

t h e r e

+,as

a n y

reasonably arguable

c a s e for t h e

e F l ; d l a n t

op. t h e ~ ~ ~ e a 1 ;

2nd

delay

Hould

l n c r e a s e

t h e

~ r ~ ~ u d l c e

t h s

r e s p c d e n t

afia

any

c t h e r c r e d l t o r s .

11.

malntenance

the

chllciren

anu

t h e n

f l n a n c i e l

s c c u r l r y

i r e

adequete ly provided

fcr b y

t h e

T r u s t s

and

holalnss

sp€Clf lCal lY

c r c a t e c

f o r

t h i s

p u r p o s e .

I n

t h e

F z m l l y

C c u r t

r h e r e

k t s

s e t t l e m e n t o f , i n t e r a l l a ,

p r o p e r t y

c l a i n

b r o u g h t

k i s

k l i e .

h o p c r t y has

mzde

c v s l l a b l e

n o t

the

bankrug t

b u t

com&&r.les

t h e Van

Reesema

g r o u p

r e f e r r e a

t G

e s r l l € r .

B e

h z s

t h e

convenience

loan

account

kh ich

i s

ExFressed

ln L ~ E

zcccLnts

cf one o r mere

rhe Van

keescmz g r o u p

c o n p a l e s

2 s

G E ~ C

f o r some $14,6CC

- t h e

F r e c l s e

sum he 616 not

knob.

€,e

s a l i of

t h i s a c c o u n i

' I . .

.any

aivance

made t o r6e by +ny ccmpany

t h a t ~ B S

l o a n 2nd. not

lnccme

has

charged

a q + l n s t

s e t

o i f

a g a l n s t

t h e

l o i n

Z c c o L n t

k i t h

h a e l o r

Japes

Inves tmen t s

(hoa r lunga ) .

P!r.

Pearce

ncnt ione@

some

t l m e E a r l i e r

I n

t h s

hezrlng,

Loarlunca

h a s

t h e compeny

used

b y t h e

group 8s + f lnaEcr arm

2nd

a l l of rl-x ctl-.er

cornFanles ,

inc luding mysdf ,

p e r e n t s

anci

b rc the r

havc

lonn

zccoCnt

bit?. >.ozrlunge

e l t h e r -1n

c r c d l t o r

1fi

d c b i t

. I '

Acccrd lns

t o

schedule cf tile \a-, keesera c r c ~ p

C L

companies

s u b m l t t e e

t he

be r .k rGpr ,

t h l s

cc~g:ar ) . ,

13.

"Fernbroke

schoo l :

$ 5 5 5 7 . 5 t j .

This

i s e

t o t a l

o f

schocjl

fees

I n

r e s p e c t

t h r e e

c h l l d r e n .

son

was

lKI-roFerly

exFel led

frcm t h e sci.001

f c r srcoklng,

h h l l s t

t h e

o t h e r s

the

s a 8 c j r c u ~ cf

sncks r s

\ . e r e

no t

expe l l ed .

T h e

Headmastcr

res lgned

the

fOllGLin9

year

becahse

r l s k l n s

unFcFuiar l ty

w i t h

p a r c n t s ,

l n c r e a s l n g

r e s l s t f n c e

t c

ins

p e c u l i a r

mznr?er

runnlng

the

scl;ool,

end

son ,

h e v l r ? ~

been thE

best

poten t1 t . l

s tLcent

cfr

r-y

c h i l d r e n hzs

been

s e r l c u s l y

hzndlcapped

Lnd

p r e ~ u d l c e d

b y

the

s c h o c l s

k c t l o n s .

m a y

ede

t h a t 1 kas not

ccnsul ted.

6 t a l l b ,h i l s t

th6

boy

o f f l c l a l l y

u n d e r

m y

c x 6 cm5

c o n t r o l

p"rSu?it?t LG F a m l l y L c u r t arrhncem6nts.

i 'nkvt

c l a i m

a s a l ~ s t

the

sc l loc l

t;mt

f i r

excee2.s

t h e

sum

c u t s t a n c ~ n g

f o r

s c k c c l

f e e s .

l h e

clzlm

0vsF. t

t c , bc

r e l e c r e o . "

14.

The

b a n k r c p t ' s

e v l c e n c e

and

e x r l s n ~ t l o n s

a s

t o

h l s

I l a b l l l t l L s ,

r e f l e c t

o n

h l s

c r e d i b l l l t y

r e r h e r

t h a n

a s s l s t l n g

o n e

dol;bt

t h a t

does

oke t he anccn t s F rcvm.

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l o s l n g

t h e

G ~ a r e o s 1 1 t l g a t l c c ,

a n

a p p e a l

a g z i n s t

t h + t

d e c l s l o n

and

t h e r e

b e m g

made

tbe

~ l ;dcmen t

fo r

c o s t s t h e n a w a r d e d q a l n s t

h l m

t h e

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peel

q a l n s t

t.hlch

vas

d l s m l s s e c ,

a s

have

men t ion&<

ez r l i e r ,

d.€

bar?krcpt

stlll

t r e a t s h l s

d e b t

f o r

costs as

"clsputeci" .

l i t e

l l t l g a t l c n I n

t h e

Supreme

C o u r t h e

h a s

b e e n

t o

s l ; s t e l n

f a r

vdl thout

Frcvldlng any f lnzcce,

ills

0v.n

ccs t s

havlng b6en

p l c

b y t h e ccmFany

formed t o ecc_ulre

the

banksla

shopplnc;

CentLf,

ant

t h e Glereos costs so f a r remz1nln5

cnpald.

“by

husband

has albzys been

troLble

b.l th

bad d e b t s .

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comlnq

r e g u l a r l y t C

served. a t o u r hcne .

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aeb ts

znc

the

r e s u l t i n s a c t i o n s k h l c h a r o s e o u t

01‘

t h e d e b t s

Csused

m e

c o n s l d e r a b l e

k o r r y

s n a

; n x l c t y

bccause mcst o f

t h e

tlme my

husbsnd \.as abzy

from hcme when the

documents

\ , e re

se rv tc .

had

s t r l c t i n s t r u c t i o n s

from my

husband rha t

kvas

not

z l lobed

any

EocmLnt

even

r e g i s t e r e d l e t t e r .

.....

the 1st of

Ganuary

1 9 7 7

l f r t

t h e

r e s p n d E r , t

End

I R G V E ~ o u t

o f

t h e

n a t r m o n l a i

home.

I.t

t h e t l n e my

husbacd v,as s~er:Glng

a p p r o x l n a t e l y

s l x t y

t o

s e v e n r l

p f r c e n t

h l s

t l m e

I n t e r s t a t e .

The

maln

reascp.

Tor

leavlncj \,as

t h e f e c t t h z t

he k.ae

nob

become z

F r o f e s s l o n z l

l l t l g a n t

2nd

b e c a c s e

cof i s tan t ly be lng har rassed by

people

comln2

t o

t h e hone

t o serve

Coccments

re la t lnc

t o

c c u r t

prcceedmcjs ....

.....

C..y

husband

has

o f t e n

t c l C

c c

t h a t

l t

1 s

d l f f l c u l t f o r h l n t o s e t s o l l c l t o r s t o a c t

for

him. On &.e occaslon

told.

~ile that

sclr.eboCy

h z e

r e f e r r e d

t c

h L K

a s

p r o f e s s l o n z l

l l t l g a n t .

seemed

qc l t e

mused

thrs

phrsse and In

f zc t took

l t

a s

y l t e an

honour.

I remember a person

bho

v,zs eF;Floyef! ty my

h u s b a n d

s p ~ c i f i c a l i y

t c

k e e p

r e c o r d s

I n

r e s p c c t

h l s

coUr t

r . c r t e r s .

had

o f f i c e

I n

F l i n d e r s

S t r e e t

I n

c h e

I..zslor-2ones

Gulldlnc.

l i s t

Court

C ~ S E S ~

k e p t

t h e

$.all

En2

any one r lme there could

i n

excess

c h l r t y

m e t t e r s

p e n c l n s

I n

v c r l o u s

c o u r t s .

‘I

k x e r l c s

and

Europe.

111s expenses

\ \ere

~ z l d

i n a , so hc clcxs,

moneys l e n t to hln

hls

b r o t h c r

f o r

L S E

c n tk.e

trip.

I:€

1.25,

~ l t h

t h e a c s l s t e c c e

t c r r l a r y E i c c e t l o r .

alia c n c t ,

becr.

c i l t

16.

I	o r d e r t h a r :

( c )

t h e

f a l l u r e

r o

s e n d

t h e

L o c l c ~

Cb)ectlcr.

TIC

Yata la

c201;

( c ! )

t h e

i a l l L r E ,

c n k ,

t o p o s t a

ccgy ci

t h e

t . o t l c t

C b z e c t l o c t o c h e l n s p c r o r C e n c r e l

Trus t ee .

r e f u s e to make

an o r d e r of

dlscharsc-.

Each slde LS to pay h l s ohn c o s t s .

[1982] FCA 305

4 Jan 1982