Ernest Abraham Siewertzs van-Reesema

[1982] FCA 305

CATCHWORDS

Bankruptcy - applicatlon for discharge - ob~ectlon by

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

c

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 J.

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 ~ Ln

1962. he became In t h a t y e a r t h e S t a t e I\.anager of thcl i l r n

"Lncyc logaea la E r l t t an lca" . he remilned In t ha t agpo ln tmenr

u n t l l t h e e r d of 1965 when, because of a d l spu re o v e r t h e paymenr

Of 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 he 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 CO 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 ; of 7 , cCG ~ c u n d s . ? t ; l s s u m v,as ~n

replacement of lncome he 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 no t p rcceed wvlth t h e c c t l c n . TlhlS, SC

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 It k o u l 2 o r mloht be 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.

4.

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 by

r e a s o n o f t h l s c c n v l c t l o n he bas d l s q u a l l f l e a f r c m belng i

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 2G P.ovcmber

1974. I t may be more 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 a d l r e c t o r o r F r o m o t e r or f r o m t z k l n g p a r t directly cr

i n a l r e c t l y I n t h e management of a ccmpany. See Corr,panles Act

1962-1974	(Soxth Australia) s.122.
In 1975 h e c c n t r a c t e d t c purchase a 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 . he 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 It

\,cs f o r anC on beha l f of a 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 ro

s e t t l e on t he f l r s t day of 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 CO 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 CO 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) G

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 L

CeV€et on 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 G. T h e bznkrupt l o s t ti-1s & c t l c n . c 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

of 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 of 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 . h6

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 of 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 ot

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 Gt h l s e s t a t e

t o h h l c h I 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 1s 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 ca lendar months . Ee 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 EO a‘ccve t h a t b

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 cf 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 by Judse Rqersor . .

1176 b&r.krupt ObjECted t~ 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 by 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 of 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 L) S a n s s t e r J: ‘i’htre

else a der .1~1 b y t h e b a A r u p t of t h e service on 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

I 6.

"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 an 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

of Sucs t lons . Unfo r tuna te ly f rom thc Fo ln t o f

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 He c l e a r l y -

nas te rmlnc iec L r . Sumner S " 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 a 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€ 1s cbvlous ly

prepareu tc 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 o f h h l c h t h e

t r u t h c a n b e s t r e t c h e d or 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 a 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 ci

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 of t h e

Supreme C o u r t of S o u t h k u s t r z l l e f o r a 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 cn l e s s

favourable terms t h a n a n t l c l p a t e d . he ciecllned t c t s k e up rl:e

o f f e r of t h e l o a n , so beceme unable CO s e t t l c t h e p u r c h c s e .

? h i s 1 s bcc one of many Involvements by tke bankrupt In

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

he 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 ot \ .hht

might ta t h e n a t u r e of 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 n

dlscharge frcm bankruptcy. hnd It 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 . Cn 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 a c e n l a l by 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 of o t h e r c f f e n c t s , 1 . e . e s op~;osrd tc

t h e F o s s l b l e C o ~ m I I S s l o ~ of 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 he coulZ no t acceFt t he l r F r o r e s t a t l c n s of leck Ct

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 01

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 5 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 -

9.

From t h l s d e c l s l o n I 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 or t l m c t h a t

appcal has cot ye t been heard .

On 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 .i

h o t l c e of 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 a 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 On Z L

Lecember 1 9 7 9 , alsrnlssec f o r h a n t cf FrosecLt loc . See i7 LLR sr

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 on t h e p a r t of 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 It 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 to 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 of 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 e

s e t t l e m e n t o f , i n t e r a l l a , a p r o p e r t y c l a i n b r o u g h t by 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 by the bankrug t b u t com&&r.les

cf 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 of a loan account kh ich i s ExFressed ln L ~ E zcccLnts

cf one o r mere of rhe Van keescmz g r o u p o f c o n p a l e s 2 s e 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 B l o a n 2nd. not lnccme has charged

a q + l n s t cr 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 ) . As

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 , ny p e r e n t s anci my

b rc the r havc a 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 e 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 , by 13 t h l s cc~g:ar ) . ,

12

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 - of

my t h r e e c h l l d r e n . son hy 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 of 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 cf 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 of runnlng the scl;ool, end

son , h e v l r ? ~ been thE best poten t1 t . l s tLcent cfr

r-y 5 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 . I 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 w s 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

a 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 co dol;bt

t h a t he does oke t he anccn t s F rcvm.

G e s p l t e 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 on 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 Seques t r a r l cn Crde r , an peel

q a l n s t t.hlch vas d l s m l s s e c , a s I 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 & l e t o s l ; s t e l n sc

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.

15

“by husband has albzys been In troLble b.l th

bad d e b t s . Summonses \,ere comlnq r e g u l a r l y t C

be served. a t o u r hcne . Tnese 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 . I

had s t r l c t i n s t r u c t i o n s from my husband rha t I

kvas not z l lobed to accept any EocmLnt even E

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

.....

Cn the 1st of Ganuary 1 9 7 7 1 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 of h l s

t l m e I n t e r s t a t e . The maln reascp. Tor m)

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 I ~ z s

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 he told. ~ile that sclr.eboCy
h z e r e f e r r e d t c h L K a s a p r o f e s s l o n z l
l l t l g a n t . He seemed qc l t e . mused by 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 of h l s coUr t r . c r t e r s . he had an
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 of Court C ~ S E S ~ L S k e p t GC
t h e $.all En2 ar any one r lme there could be i n
excess cf 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 by 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 of a 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 ~ of Cb)ectlcr. TIC

Yata la c201;

( c ! ) t h e i a l l L r E , IF c n k , t o p o s t a ccgy ci t h e t . o t l c t

of 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 cr Trus t ee .

I 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 .

I I