Groves, in the matter of Groves (Bankrupt) v Robinson (Trustee)

In the Federal Court of Australia, the matter of Groves, in the matter of Groves (Bankrupt) v Robinson (Trustee) was heard. The applicant, a bankrupt, sought review of decisions made by the trustees of his estate under section 178 of the Bankruptcy Act 1966 (Cth) to refuse his request to travel overseas. The applicant sought to travel to Canada permanently to assist his wife in establishing an English language college in Vancouver. The trustees had deferred their decision on the application until the applicant's return to Australia, and subsequently, they rejected his request. Both decisions were made while the applicant was outside Australia, although he returned to attend the hearing of the application.

The court was required to decide whether the discretionary factors identified in Re Tyndall (1977) 30 FLR 6 were satisfied in this case. The factors included whether the bankrupt would co-operate with his trustees and whether there were sufficient safeguards in place to ensure that the bankrupt would return to Australia if required. The court found that the trustees' decisions were unreasonable and that the discretionary factors had been met. The applicant had demonstrated a strong likelihood of co-operation with the trustees and had provided adequate safeguards, such as maintaining contact details and agreeing to return to Australia if requested.

The court set aside the trustees' decisions and directed the trustees to consent to the applicant leaving Australia, subject to a number of conditions. These conditions included co-operation with the trustees, providing an undertaking to return to Australia at the trustees' request, and maintaining contact details while abroad. The court also ordered that the respondents pay the applicant's costs of the hearing and attendance at judgment. The trustees were directed to fix dates for the applicant's public examination after consultation with the applicant and the trustees.