Laba-Sarkis v Moussa

Case [2012] FMCA 717


FEDERAL MAGISTRATES COURT OF AUSTRALIA

LABA-SARKIS v MOUSSA & ANOR [2012] FMCA 717

PRACTICE AND PROCEDURE – Adjournment – where matter adjourned three times previously – where previous adjournments to allow for leave to appeal – where leave to appeal to New South Wales Court of Appeal summarily dismissed – where merits not considered – where applicant seeks leave to appeal to Full Bench of New South Wales Court of Appeal – where no indication of error in summary dismissal – where prospects of success small – whether to adjourn.

BANKRUPTCY – Trustee – conduct of trustees – where trustees refused to allow applicant to appeal judgment upon which bankruptcy notice and subsequent sequestration order based or to undertake appeal themselves – where applicant continued appeal – where dismissed on ground that bankrupt had no standing – where application to appeal trustee decision not made within 60 days – whether 60 day time limit mandatory or can be extended – whether prospects of success in appeal proceeding – whether to make orders sought.

Bankruptcy Act 1966, ss.33(1)(b), 58, 60, 178
Supreme Court Act1970 (NSW)
Cummings v Claremont Petroleum (1996) 185 CLR 124
Baulkham Hills Shire Council v Stankovic [2009] NSWCA 281
Raniere Nominees Pty Ltd trading as Horizon Motor Lodge v Daley (2006) 67 NSWLR 417
David Grant & Co Pty Ltd v Westpac Banking Corp (1995) 184 CLR 265
Applicant: TOUFIC LABA-SARKIS
First Respondent: MAHMOUD MOUSSA
Second Respondent: ANTHONY DE VRIES & DAVID SOLOMONS
File Number: SYG 1332 of 2011
Judgment of: Raphael FM
Hearing date: 1 August 2012
Date of Last Submission: 1 August 2012
Delivered at: Sydney
Delivered on: 1 August 2012

REPRESENTATION

Counsel for the Applicant: Ms F Sinclair
Solicitors for the Applicant: Benjamin & Khoury Solicitors & Attorneys
Counsel for the First Respondent: Mr K Rollingson
Solicitors for the First Respondent: George Khoury & Co. Solicitors
Solicitors for the second Respondent: Sally Nash & Co.

ORDERS

  1. Adjournment refused.

  2. Application dismissed.

  3. Applicant to pay the costs of both respondents, such costs to be paid from the estate of the bankrupt.

FEDERAL MAGISTRATES
COURT OF AUSTRALIA
AT SYDNEY

SYG 1332 of 2011

TOUFIC LABA-SARKIS

Applicant

And

MAHMOUD MOUSSA

First Respondent

ANTHONY DE VRIES & DAVID SOLOMONS

Second Respondent

REASONS FOR JUDGMENT

Application for adjournment

  1. This matter, which seeks review of a decision of trustees in bankruptcy made in December 2011, has been before the court on a number of occasions since the application was made originally on 9 March 2011.  On 19 March I adjourned it until 3 May.  It was further adjourned until 8 June and on 8 June it was adjourned until today.  The ground upon which I granted those adjournments was that the bankrupt was seeking leave in the Court of Appeal to appeal a decision of Latham J of the New South Wales Supreme Court dismissing an appeal from a decision of Magistrate O’Shea which formed the basis of the debt that has resulted in Mr Laba-Sarkis’ bankruptcy. 

  2. The application before…

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Details
AGLC
Laba-Sarkis v Moussa [2012] FMCA 717
Case
[2012] FMCA 717
Decision Date

CaseChat Overview and Summary

The matter before the court involved an applicant, Laba-Sarkis, who sought leave to appeal a decision of the Full Court of the Federal Court and the conduct of the trustee of a bankrupt estate, Moussa. Laba-Sarkis had been the subject of a bankruptcy notice and subsequent sequestration order, which he sought to challenge. The dispute centered on the court's power to grant an adjournment and the validity of the time limits for appealing the trustee's decisions. The court had to decide whether the adjournment was warranted given the history of previous adjournments and the lack of any indication of error in the summary dismissal of the appeal. Additionally, the court had to consider the mandatory nature of the 60-day time limit for appealing the trustee's decision and the prospects of success in any such appeal.

The court examined the history of adjournments in the case, noting that the matter had been adjourned three times previously, each time to allow for leave to appeal. The previous appeals were summarily dismissed by the New South Wales Court of Appeal, with the merits not being considered. The court also assessed the merits of the applicant's appeal against the trustee's conduct, considering that the applicant had continued to appeal despite being informed that the bankrupt had no standing. The court further scrutinised the compliance with the 60-day time limit for appealing the trustee's decision, and the likelihood of success in such an appeal.

In reaching its decision, the court found that there were no grounds for an adjournment given the history of adjournments and the absence of any indication of error in the summary dismissal of the appeal. The court held that the 60-day time limit for appealing the trustee's decision was mandatory and could not be extended. The prospects of success in any appeal proceeding were deemed to be small. Consequently, the court refused the adjournment and dismissed the application. The applicant was ordered to pay the costs of both respondents, with those costs to be paid from the estate of the bankrupt.

Orders

Orders of the court

1.

Adjournment refused.

2.

Application dismissed.

3.

Applicant to pay the costs of both respondents, such costs to be paid from the estate of the bankrupt.

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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