S3 99
JUDGMENT No. ........ ,........ , I ........ .... 1 I i
IN THE FEDERAL COURT OF AUSTRALIA ) VICTORIA DISTRICT REGISTRY
1 NO VB 3148 of 1991 r 1 GENERAL DIVISION
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BETWEEN: WICHAEL JON KIVLINGHON
(Applicant)
AND : PAUL ANTHONY PATTISON
Coram: Ryan J Place: Melbourne Date: 12 January 1994
EX TEMPORE REASONS FOR JUDGMENT
Rvan J: This is an application under s.178 of the ~ a n & ~ t c ~ Act seeking a review of a decision of the bankrupt's trustee not
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to consent to the bankrupt leaving Australia. The bankrupt is
57 years of age and has been requested to travel to the People's i Republic of China as a consultant to Midland Skin Exports Pty Limited ("Midland"), a company controlled by one of the r ' bankrupt's sons which has a prospect of concluding a contract for b I the export to that country of a very large number of animal 1 :
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skins. I *
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The bankrupt has special expertise as a fellmonger and his i ! : participation is seen as being likely to enhance the prospects of success of the negotiations because of his ability to advise / . 8 .. the proposed Chinese purchasers on techniques of processing the L
skins which Midland hopes to sell into China. Expertise like I I
that of the bankrupt is not possessed by any officer or employee 1 ,
of Midland and it seems that the relevant expertise is otherwise i
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available only from persons connected with competitors of Midland. It is accepted on both sides that under S. 178 the Court is required to exercise the relevant discretion for itself and is not confined to interfering with the trustee's decision, only if that decision is shown to have been vitiated by error; see for example Re Tyndall (1977) 30 FLR 6. That is not to say, however, that the Court should not take account of the trustee's decision as a factor relevant to the exercise by the Court of the discretion for itself.
The administration of the bankrupt estate of M r Kivlighon does not presently involve an investigation of his affairs and it is not suggested that the administration will be prejudiced by his absence overseas for a short time. Although the ANZ Bank, a major creditor of the bankrupt, has indicated to the trustee its opposition to his travelling overseas it has assigned no reason
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| In all the circumstances, taking into account the decision of the | |
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| destination and the short duration of the proposed travel, I consider it an appropriate exercise of the discretion to grant permission for the bankrupt to travel to the People's Republic of China. I attach to that grant of permission the following conditions: | |
| (l), that the travel by the bankrupt occur between 15 January and | |
| 1 February 1994. |
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( 2 ) , that Midland permit the trustee by 14 January 1994 to sight a return air ticket confined to travel by the bankrupt to the People's Republic of China and return between those dates.
( 3 ) , that the bankrupt forthwith on his return deliver up to the
trustee any new passport which may be issued to him for the
purpose of the proposed travel.
I also consider it proper to make no order as to the costs of the
application to this Court. I shall reserve liberty to either party to apply on not less than 48 hours notice in writing to the other party.
I certify that this and the
preceding two (2) pages are a true copy of the ex tempore reasons for judgment of his Honour Mr Justice Ryan
Associate: Uw
Date : %l & L 4 4 1 1
- AGLC
- Kivlinghon, M.J. v Pattison, P.A [1994] FCA 53
- Case
- [1994] FCA 53
- Decision Date
CaseChat Overview and Summary
The legal issue before the court was whether the bankrupt's travel was justified under the statutory framework and whether the court should exercise its discretion to permit the travel. The court noted that the bankrupt's expertise in fellmongering was crucial to the negotiations in China, and the trustee had not provided a reasoned objection to the travel. The court also considered that the bankrupt's absence for a short period would not prejudice the administration of the estate. Given the circumstances, the court concluded that it was appropriate to exercise its discretion in favour of the bankrupt's travel, subject to certain conditions.
In exercising the discretion, Ryan J granted permission for the bankrupt to travel to China between 15 January and 1 February 1994. The court imposed conditions to ensure the protection of the bankrupt's estate, including the requirement for Midland to provide a return air ticket to the trustee and for the bankrupt to surrender any new passport issued for the trip upon his return. The court also declined to make an order as to the costs of the application, reserving the right for either party to apply for costs at a later date.
The final orders of the court were that the bankrupt was permitted to travel to the People's Republic of China under the specified conditions, and no order was made as to the costs of the application. This decision allowed the bankrupt to undertake the consultancy work in China, while ensuring that the interests of the creditors were safeguarded.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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