FEDERAL CIRCUIT COURT OF AUSTRALIA
| GEORGE TOWN COUNCIL v NEILSEN | [2018] FCCA 74 |
| Catchwords: BANKRUPTCY – Judicial Review – costs order of Tribunal – whether constitutes a final or judgment order pursuant to s.42(1)(g) of the Bankruptcy Act1966 – application dismissed. |
| Legislation: Bankruptcy Act 1966, ss.40, (1)(g), 41 Resource Management and Planning Appeal Tribunal Act 1993 (Tas), s.28(6) |
| Cases cited: Resource Management and Planning Appeal Tribunal Act 1993 (Tas) |
| Applicant: | GEORGE TOWN COUNCIL |
| Respondent: | GRAEME NEILSEN |
| File Number: | LNG 76 of 2016 |
| Judgment of: | Judge McGuire |
| Hearing date: | 7 July 2017 |
| Date of Last Submission: | 12 December 2017 |
| Delivered at: | Launceston |
| Delivered on: | 30 January 2018 |
REPRESENTATION
| Counsel for the Applicant: | Ms Knott |
| Solicitors for the Applicant: | Page Seager |
| The Respondent appeared in person |
ORDERS
That the Application for Review filed 20 April 2017 be dismissed.
| FEDERAL CIRCUIT COURT OF AUSTRALIA AT LAUNCESTON |
LNG 76 of 2016
| GEORGE TOWN COUNCIL |
Applicant
And
| GRAEME NEILSEN |
Respondent
REASONS FOR JUDGMENT
Application
This is an application for a review of a Registrar's decision made 13 April 2017 dismissing the applicant’s Creditors Petition filed against the respondent on 5 December 2016.
The Registrar dismissed the petition because:
i)A costs order of the Resource Management and Planning Appeal Tribunal (Tas) (“the Tribunal”) made 10 July 2014 and later quantified by an amended Certificate of Taxation issued by the Tribunal on 8 September 2015 was unenforceable because the order was not registered with the Supreme Court of Tasmania pursuant to s.28(6) of the Resource Management and Planning Appeal Tribunal Act 1993 (Tas) (“RMPAT Act”); and
ii)The order is not a final judgment or order in accordance with s.40 (1) (g) of the Bankruptcy Act 1966 (“the Act”).
The Application for Review filed 20 April 2017 seeks the following orders:
i)The sequestration order be made in the terms of the Creditors Petition ($60,628.14);
ii)The respondent pay the applicant's costs of the sequestration order; and
iii)The respondent pay the applicant's costs of the review application.
The applicant is represented by solicitors from whom I have received helpful written submissions.
The respondent before me is self-represented and argues that the Application for Review be dismissed. The respondent has provided me with copious materials including substantial written submissions. From the respondent’s materials and his oral submissions in Court, I understand that he firstly adopts the reasoning of the Registrar in arguing for dismissal of the application. In the alternative he puts forward a ‘go behind’ argument or arguments.
Background
The respondent was involved in a planning dispute with the applicant Council regarding a redevelopment project. The respondent is a former member of the George Town Council. The respondent was unsuccessful in his application. The Tribunal delivered reasons on 10 July 2014. The respondent was ordered to pay the applicant's costs of and incidental to the appeal and evident in the reasons at [25] as follows:
The order of the Tribunal is…
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- Case
- [2018] FCCA 74
- Decision Date
CaseChat Overview and Summary
The central legal issue before the court was whether the RMPAT order for costs, as quantified by a Certificate of Taxation, constituted a "final judgment or final order" for the purposes of section 40(1)(g) of the *Bankruptcy Act 1966* (Cth), which is a prerequisite for the issuance of a bankruptcy notice under section 41 of the same Act. Specifically, the court had to determine if the RMPAT order, once quantified by the Certificate of Taxation and registered with the Supreme Court, could be enforced as a final judgment.
Judge McGuire reasoned that for a bankruptcy notice to be validly issued, it must be based on a final judgment or order the execution of which has not been stayed. While section 28(7) of the *RMPAT Act 2020* (Tas) permits proceedings for the enforcement of an order for costs as if it were a judgment of the court in which it is registered, the court found that the RMPAT order itself had not been registered with the Supreme Court. The Certificate of Taxation, which quantified the costs, had been registered, but the underlying order had not been separately extracted for registration. Furthermore, the court accepted that an order whose quantum is uncertain cannot be enforced until it is quantified.
Consequently, the court found that the RMPAT order for costs, as presented, did not meet the requirements of a final judgment or order capable of supporting the issuance of a bankruptcy notice under the *Bankruptcy Act*. The application for the bankruptcy notice was therefore dismissed.
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Background
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Decision
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