John Ransey Paul Partridge v John Ransey Paul Partridge (Applicants)

[1982] FCA 316

I N THZ	FEDZRAL	COURT	OF AUSTRALIA	)
)

GEXCR4L DIVISION	1
1

BAXRUPTCY DISTRICT OF THE	STATE	OF	)	NO.	T 926 OF 1982
1

NEW SOUTH	WALES	AND	THE	1
I

AUSTRALIAN CAPITAL TERRITORY

)

RE :	JOI% RAIISAY	P RTRIDGE	PAUL
EX PARTE:	JOHN RAXSAY	P UL	PARTRIDGE

Applrcant

REASONS FOR JUDGMENT

LOCKHART J.

22 SEPTLBER 1982

John Ramsay P a u l P a r t r i d g e s e e k s to b e r e g i s t e r e d as a trustee

i n bankrugtcy. He i s a man of cons ide rab le expe r i ence in the f r e ld o f

rnsnlveEcy. I heard hrs a p p l l c a t l o n y e s t e r d a y when the ev ldence

s a z l s f i e e =e t h a t t h e a p p l i c a t i o n s h o u l d s u c c e e d , s u b l e c t to one matter

which I m s h e d to cons ider overnight.

< Tne matter whichrnncernsme is t h a t a t t h e commencement of

t	k	h e z z n g o f	t h e a p p l i c a t i o n y e s t e r d a y , N r . P a r t r i d g e s a i d	t h a t ,	if h i s
a??:ic=tioa	succeeZs,	he	l n t e n d s t o act a s a	trustee i n bankruptcy and	a t
--	L e s z ~ e	ZIX	to p r a c t r s e DOE:?	a s a	s o l i c l t o r and an accountant ,

e s s e a 5 z l l y t h o u g h n o t e x c l u s l v e l y a t P o r t Macquarie I n New South Wales.

Nr. PartriBbe is i n a p o s i t l o n t h i t is a h o s t uniqu? i n a y

z,;sr-?zce:	he 1 s a	so l ic l tor of	t he Supreme C o u r t of Xew South	Nalss	z?=i
m1is 5	c c r r e n t practising	c e r t l f l c n t e ;	he 1 s also a	ch3rcered	accoJn:art

_ .

a7-c X B , i n t h e p a s t , held a c u r r e n t p r a c t i s i n g c e r t l f z c a t e a u t h o r l s l n g

Port Macquarie i s a prosperous and burgeoning centre but i t is

no t a l a r g e c i t y . The p o s s i b i l i t y o f c o n f l l c t s a r i s l n g between interests

and	d c k i e s 2nd	b2LCWe~n d i f f e r e p t d u k l e s ,	i f ,Ir.	P2r'c:ldge	: e r e e n t i t l e d	t3
a c t	i n a l l	three c a p a c l t i e s ,	is obvlous.	I t needs no	f u r t h e r s ta tement .	I t

would a l s o set a dangerous	precedent	.	After	t h e	hearing	proceeded	for	some
tme	y e s t e r s a y ,	Mr.	Par t r ldge	r ecogn i sed	t h e problems	Inherent	in	h l s

a p p l l c a t i o n , and h i s s o l i c l t o r s a i d t h a t Mr. P a r t r i d g e would be prepared to

I

c e a s e p r a c t i c e a s a solicitor and p r a c t l s e o n l y as an accountant and a

r e g i s t e r e d	trustee.
Lacer the solicitor f o r Mr. P a r t r i d g e s a l d t h a t he would p r e f e r

J to p r a c t i s e a s a s o l i c i t o r and a r e g i s t e r e d trustee and cease t o p r a c t l s e a s

an accountant. The solicitor appearlng for Mr. Par t r ldge has conf i rmed th l s

morning t h a t t h i s l a s t m e n t i o n e d s t a t e m e n t of i n t e n t 1 s Mr. P a r t r i d g e ' s f i n a l

ska t emen t , sub j sc t to t h i s : t h a t h i s ove r - r id ing des r r e is to be a r e g i s t e r e d

t r u s t e e i n b a x r u p t c y .

i Lave been to ld by t h e Off lc ia l Rece lver and by t h e s o l l c l t o r

for Kr. Jar tzLBge tha t there is no previous occaslon on which a p r a c t i s i n g

solicitor h a s been r e g i s t e r e d a s a t r u s t e e l n bankruptcy i n New South Wales.

T x s t confes s to 'cavrng some misgivings about a s o l i c i t o r p r a c t l s l n g

i n B %;all	cc.-;r.mity	and	a l s o	a c t m g	as a	t r u s t e e i n bankruptcy.	The p o s s i b l l l t y	'
,

0 5 co;1f1ic=s 5,etween du ty and i n t e r e s t and between d i f f e r e n t d u t r e s is ever

preseJc . I .

..

r.swever, Mr. Par t r idge has beea i n p r a c t l c e over t h e years on var lous

occas1s;rrs lil :he capac lk l e s I have a l rezdy re fer red to . He knmds t h a t IF he

seeks s a y s c s s l b l l l t y o f c o n f l l c t a r l s l n g 13 the fut!Ice. ht mus t ensure khnk he

rP3:'+s r.ins?lE fro-n any potential area oE c o 7 f l i c t . IT ne prac:ices 2s a

so l r c lkoc he w l l l i n e v i t a b l y a c t a t t m e s €or people who a r e creciltors or debtors

or ocn;cr-?ts or persons ~ h o s s a f f a r s a r e o--r?cj adTrnls te red or are t o 53

adminls tered under Par t X of the Bankruptcv A c t 1966, or per sons whose a f f a l r s

are otherwlse being admrnrstered r n an in so lven t admin i s t r a t ion .

He m u s t be s c r u p u l o u s l y c a r e f u l to ensure tha t he never a l lows

himself to be placed I n a p o s l t i o n o f c o n f l i c t between v a r i o u s d u t l e s or between

. 2uty and i n t e r e s t ; nor m u s t he eve r a l l ow the s r tua t ion t o a r i s e where he may

be seen to be i n t h a t p o s l t i o n of conflict or p o t e n t i a l c o n f l l c t . A r e g r s t e r e d

t r u s t e e mus t not only be impartral ; he m u s t be seen to be Impart ia l . The

smiler t h e c o m u n r t y I n which he p r a c t i c e s , t h e g r e a t e r t h e p o s s i b i l l t y o f

I

- c o n f l i c t .

I propose to g r a n t Mr. P a r t r i d g e ' s a p p l i c a t i o n , p r o v i d e d t h a t he

L under takes to the Cour t tha t he will n o t , u n t i l f u r the r o rde r and w h i l s t he i s

a	r e g i s t e r e d	t r u s t e e	i n bankruptcy practice,	ac t as an	accountant,	whether	on
his own	account or	i n p a r t n e r s h i p	or	as an	employee	or o therwise .	HIS counsel

h a s t o l d =e t h a t Mr. P a r t r i d g e is prepared to o f f e r t h i s undertaking to t h e

C o u r t end r e c o g n i s e s t h e n e c e s s i t y t h a t he do so.

12 r each ins X ! conclus ion I have taken in to cons idera t ion the fac t

ttut t h e Law Socie ty of Kew South Kales has told Mr. P a r t r i d g e t h a t i n i ts view

he .nay a t t > e same t i z e c a r r y on p r a c t i c e a s a s o l i c r t o r and a c t a s a r eg r s t e red

t r u s c e e ia sezkruptc_v, provided ne e n s u r e s t h a t he does n o t a l low himsel f to

bscoxe invoLrei ln a c o c f i r c t of d c t i r s and t h a t he keeps h i s p r a c t i c e as a

s o l k k o r sa32rake fron h l s a z t r v r t l e s a s a r e g l s t e r e d t r u s t e e .

-_ uJon t h e q p l k a n t . J o n n Ramsay Paul Par t r idge , g lv ing h l s personal

uade r t ek ins i a the Court t h t he will not u n t i l f u r the r o rde r and w h l l s t h e 1 s

a resisLerei t r u s t e e i n bankruptcy pcaccice a c t a s an accountant, whether

on his own account or i n p a r t n e r s n l p or a s an employee O K otherwlse , t h e Cour t

Orders t h t Jonn Ramsay Paul Partridge be r e g l s t e r e d as qusl1:Led to a c t as a

t ru s t ee acco rd ing to t h e pKOVlslOns o f P a r t VI11 of t h s B ~ n k r u ~ t c v Wt. 19G5 upon