Low v Tsoutsoulis

Jennifer Elizabeth Low, as Trustee of the Estate of Billy Tsoutsoulis, applied to the Federal Circuit Court of Australia for orders to sell the bankrupt's property located at 83 Hayes Avenue, Yokine, Western Australia, and to obtain vacant possession of the premises. The dispute arose from the bankrupt's failure to cooperate with the trustee in the administration of his estate, specifically concerning the realisation of the Yokine Land.

The court was required to determine whether to grant the trustee's application for orders compelling the bankrupt to deliver up vacant possession of the property, remove personal effects, and allow the trustee sole conduct of the sale. The court also needed to consider the appropriate legal basis for issuing orders to enforce compliance, particularly in light of the bankrupt's non-appearance and lack of response to the proceedings.

Judge Lucev reasoned that the trustee has a statutory duty under the *Bankruptcy Act 1966* (Cth) to recover property for the benefit of the bankrupt's estate and creditors. The court found that the bankrupt had failed to execute necessary instruments and generally assist in the realisation of the Yokine Land, thereby breaching his duties under section 77(1)(e) and (g) of the Act. Given the bankrupt's non-compliance and absence from court, the judge concluded that granting the trustee sole conduct of the sale was necessary to avoid delays and prejudice to creditors. The court also confirmed its power under section 30 of the *Bankruptcy Act* to make such orders, including a Property Seizure and Delivery Order, to give effect to the Act.

The court made orders for the respondent to deliver up vacant possession and all keys to the premises within 14 days. It further ordered the respondent to remove all vehicles, rubbish, and chattels not vested in the Official Trustee within the same timeframe, failing which the applicant was empowered to remove and dispose of them. The Yokine Land was to be sold under the sole conduct of the applicant, who was authorised to sign all necessary documents on behalf of the respondent if he failed to do so. The net proceeds of the sale were to be paid to the applicant, and the applicant was awarded costs fixed at $8815.