Khan v Roufeil

[2019] FCCA 3468

FEDERAL CIRCUIT COURT OF AUSTRALIA

KHAN v ROUFEIL [2019] FCCA 3468

Catchwords:
BANKRUPTCY – Application for permission to travel overseas – whether the applicant understands his obligations as a bankrupt – application dismissed.

Legislation:

Bankruptcy Act 1966 (Cth), s.27

Applicant: SHER AFZAL KHAN

Respondent: MARK ROUFEIL

File Number: SYG 3056 of 2019

Judgment of: Judge Street

Hearing date: 28 November 2019

Date of Last Submission: 28 November 2019

Delivered at: Sydney

Delivered on: 28 November 2019

REPRESENTATION

The Applicant appeared in person.

Solicitors for the Respondent: Mr N Dale
Gillis Delaney Lawyers

ORDERS

1. The application is dismissed.

DATE OF ORDERS: 28 November 2019

FEDERAL CIRCUIT COURT
OF AUSTRALIA
AT SYDNEY

SYG 3056 of 2019

SHER AFZAL KHAN

Applicant

And

MARK ROUFEIL

Respondent

REASONS FOR JUDGMENT

1. This is an application within the Court’s jurisdiction under s 27 of the Bankruptcy Act 1966 (Cth) in respect of which the bankrupt is seeking review of a decision by the trustee not to permit the bankrupt to travel overseas.

2. The Court has had read two affidavits on behalf of the bankrupt affirmed 22 November 2019 and 26 November 2019 in respect of an application filed by the bankrupt seeking permission to travel overseas.  The content of the affidavits and the bankrupt’s submissions went beyond permission to travel overseas and sought to raise an issue of annulment.  The Court indicated that it would only hear the matter, given the content of the application, as an application in respect of permission to travel overseas.  It was on that basis that the proceeding continued.

3. The Court also heard evidence from the bankrupt in which the bankrupt explained that he wished to travel overseas and had travelled overseas before. 

4. The trustee has put on an affidavit sworn 28 November 2019 identifying communications which have taken place with the bankrupt and the failure by the bankrupt to provide the whole of the information requested by the trustee. 

5. More alarmingly, the trustee’s affidavit identifies the bankrupt treating a particular charity as if it is his own funds.  The trustee has also identified that there are proceedings on foot in New Zealand, which had not been disclosed to the trustee, in respect of the assets of the bankrupt and in which the bankrupt apparently is claiming $3 million. 

6. Of even greater concern to the Court is the fact that, in those New Zealand proceedings, the applicant has put on a false affidavit dated 30 September 2019 in which he has alleged he is not a bankrupt at paragraph 4.  From the bar table in submissions, the bankrupt continued to assert that he was not a bankrupt. 

7. It is apparent from that false affidavit that the bankrupt has no understanding of the fact of his bankruptcy or his obligations as a bankrupt.  In these circumstances, it is not appropriate to permit a grant of leave to the applicant to travel overseas given the concerns expressed by the trustee and the lack of understanding by the bankrupt of being, in fact, a bankrupt and his obligations as a bankrupt.

8. The application for permission to travel overseas is dismissed.

I certify that the preceding eight (8) paragraphs are a true copy of the reasons for judgment of Judge Street delivered in open Court on 28 November 2019 and the parties were provided sealed copies of the Court’s orders

Associate:  

Date:  23 December 2019