Ketch Nominees Pty Ltd v Hadden

FEDERAL MAGISTRATES COURT OF AUSTRALIA

KETCH NOMINEES PTY LTD v HADDEN [2007] FMCA 8

BANKRUPTCY – Application for sequestration order – whether Respondent Debtor solvent – cash flow – assets and liabilities – alleged outstanding tax liabilities – Supreme Court proceedings – Respondent Debtor solvent.

EVIDENCE – Admissibility – hearsay – notice.

COSTS – Discretionary – no special circumstances – follow the event.

Bankruptcy Act 1966 (Cth), ss.5(1); 32; 40(1)(g); 41(7); 43, 52(2)
Evidence Act 1995 (Cth), ss.48, 67(1)

Allied Pastoral Holdings Pty Ltd v FCT [1983] 1 NSWLR 1
Bank of Australasia v Hill (1907) 4 CLR 1513
G.. Ferella v Otvosi & Ors [2006] FMCA 334
Hadden v Ketch Nominees Pty Ltd [2005] FMCA 794
International Alpaca Management Pty Ltd v Ensor [1999] FCA 72
McIntosh v Shashoua (1931) 46 CLR 494
Re Noye; ex parte Deputy Federal Commissioner of Taxation (1956) 18 ABC 77
Re Sanders; Knudsen and Yates (trading as The Hargreaves Practice) v Sanders (2003) 1 ABC(NS) 408; [2003] FCA 1079
Re Sarina, Ex parte Council of the Shire of Wollondilly (1980) 43 FLR 163
Re Skase; ex parte Donnelly (1992) 37 FCR 509
Sandell v Porter (1966) 115 CLR 666
Sarina v Council of the Shire of Wollondilly (1980) 48 FLR 372

Applicant: KETCH NOMINEES PTY LTD

Respondent: HEIDI HADDEN

File Number: PEG12 of 2006

Judgment of: Lucev FM

Hearing date: 5 September 2006

Date of Last Submission: 5 September 2006

Delivered at: Perth

Delivered on: 10 January 2007

REPRESENTATION

Counsel for the Applicant: Mr D. Skender

Solicitors for the Applicant: Gadens, and later Phillips Fox

Counsel for the Respondent: Mr I. Tait

Solicitors for the Respondent: Tait & Co.

ORDERS

1. The Court orders that:

   (a)The Applicant Creditor’s petition be dismissed;

   (b)The Applicant Creditor pay the Respondent Debtor’s costs to be agreed, or if not agreed, taxed in accordance with O.62 of the Federal Court Rules; and

   (c)The sum of $13,000.00 paid into Court by the Respondent Debtor pursuant to order 3 of Registrar Jan’s order of 19 June 2006 be released to her forthwith.

FEDERAL MAGISTRATES
COURT OF AUSTRALIA AT
PERTH

PEG12 of 2006

KETCH NOMINEES PTY LTD

Applicant

And

HEIDI HADDEN

Respondent

REASONS FOR JUDGMENT

Application

1. On 12 January 2006 Ketch Nominees Pty Ltd (“the Applicant Creditor”) applied to the Court for a sequestration order under s.43 of the Bankruptcy Act 1966 (Cth) (“Bankruptcy Act”) against the estate of Heidi Hadden (“the Respondent Debtor”).

Background

1. On 19 February 2003 the Applicant Creditor obtained judgment in the Local Court of Western Australia (“Local Court”) at Narrogin in respect of Plaint 121/02, in the sum of $2970 plus interest and costs.

2. On 11 February 2005 the Applicant Creditor obtained Bankruptcy Notice No 53 of 2005 (“Bankruptcy Notice”) requiring the Respondent Debtor to pay the amount of $3,280.50 (“Judgement Debt”).[1]

   [1]  Esposito Affidavit, 28 July 2005, annexure DE1.

3. The Bankruptcy Notice was served on the Respondent Debtor on
   

   [2]  Esposito Affidavit, 28 July 2005, paras 1 and 2.

   23 February 2005.[2]