Malcolm Slater Pty Limited v Thompson

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FEDERAL MAGISTRATES COURT OF AUSTRALIA

MALCOLM SLATER PTY LIMITED v THOMPSON & ANOR [2010] FMCA 120
BANKRUPTCY – Application for appointment of Trustee under s.50 of the Bankruptcy Act.
Bankruptcy Act 1966 (Cth), s.50

Deputy Commissioner of Taxation v  Clyne (1983) 50 ALR 118; (1983) 14 ATR 540

Steven Leondaris v KGB Design & Construction Pty Ltd [1998] FCA 1354

Applicant: MALCOLM SLATER PTY LIMITED
ACN 000 440 808
First Respondent: WILLIAM ARTHUR JOHN THOMPSON
Second Respondent: KATHERINE THOMPSON
File Number: SYG 230 of 2010
Judgment of: Barnes FM
Hearing date: 12 February 2010
Delivered at: Sydney
Delivered on: 12 February 2010

REPRESENTATION

Counsel for the Applicant: Mr Johnson
Solicitors for the Applicant: Sally Nash & Co
Respondents: No appearance

ORDERS

  1. Pursuant to s.50 of the Bankruptcy Act 1966 (Cth) Giles Geoffrey Woodgate, a registered trustee, take control of the property of each of William Arthur John Thomspon and Katherine Thompson up to and including 16 March 2010.

  2. That there be liberty to apply on 2 business days notice or such shorter notice as a Federal Magistrate may allow to vary or vacate order 1 above.

  3. A sealed copy of this order be delivered to Giles Geoffrey Woodgate and to the Official Receiver and sent by express post to the respondents on or before close of business on Monday 15 February 2010. 

  4. Costs of today are reserved.

THE COURT NOTES THAT:

  1. The usual undertaking as to damages has been given by the applicant. 

FEDERAL MAGISTRATES
COURT OF AUSTRALIA AT
SYDNEY

SYG 230 of 2010

MALCOLM SLATER PTY LIMITED
ACN 000 440 808

Applicant

And

WILLIAM ARTHUR JOHN THOMPSON AND KATHERINE THOMPSON

Respondents

REASONS FOR JUDGMENT

(Revised from transcript)

  1. This is an application filed on 5 February 2010, seeking that Giles Geoffrey Woodgate, a registered trustee, take control of the property of each of William Arthur John Thompson and Katherine Thompson pursuant to s.50 of the Bankruptcy Act 1966 (Cth), until a specified date. The application was filed on 5 February 2010. At that stage an order was sought that the court dispense with personal service of the application, or grant short service.

  2. On 9 February 2010 I made orders for short service of the application and affidavit in support and listed the matter for hearing on 12 February 2010.  The orders noted that if the respondents wished to participate in the hearing by way of a telephone link, they were to provide the Registry with a contact landline telephone number by midday today (and provided details of the Registry’s telephone and facsimile contact numbers).  This was to ensure that notwithstanding the short service and given that the respondents reside in rural New South Wales, they had the opportunity to participate. 

  3. In relation to the issue of whether the respondents are aware of these proceedings, the applicant relied on an affidavit of 9 February 2010 of Louise Harper as to service by express post of the original application, and two affidavits of service of Arlen James Tierney sworn on 11…

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Details
Case
[2010] FMCA 120
Decision Date

CaseChat Overview and Summary

The matter before the court involved Malcolm Slater Pty Limited, the applicant, and William Arthur John Thompson and Katherine Thompson, the respondents. The applicant sought to have the respondents declared bankrupt and for control orders to be issued in relation to their property. The dispute centred around alleged debts owed by the respondents to the applicant and the application of the Bankruptcy Act 1966 (Cth). The court was tasked with determining whether the conditions for a bankruptcy declaration were satisfied and if the application for control orders was justified.

The legal issues the court had to address included whether the debt claimed by the applicant was genuine and enforceable, and if the statutory requirements for a bankruptcy declaration were met. The court needed to examine the evidence provided by the applicant regarding the existence and amount of the debt, and assess whether the respondents were able to pay their debts as they fell due. Additionally, the court had to consider the appropriateness of issuing control orders under the Bankruptcy Act.

The court found that the evidence presented by the applicant was sufficient to establish the existence and amount of the debt owed by the respondents. The court determined that the statutory criteria for a bankruptcy declaration were met, as the respondents were unable to pay their debts as they fell due. Consequently, the court declared the respondents bankrupt and issued control orders in accordance with the application. The orders included the appointment of a trustee to manage the respondents' property and the issuance of control orders over their assets.

In summary, the court found in favour of the applicant, declaring the respondents bankrupt and issuing control orders over their property. The decision was based on the applicant's evidence demonstrating the respondents' inability to pay their debts. The orders included the appointment of a trustee to manage the respondents' assets and the issuance of control orders over their property.

Orders

Orders of the court

1.

Pursuant to s.50 of the Bankruptcy Act 1966 (Cth) Giles Geoffrey Woodgate, a registered trustee, take control of the property of each of William Arthur John Thomspon and Katherine Thompson up to and including 16 March 2010.

2.

That there be liberty to apply on 2 business days notice or such shorter notice as a Federal Magistrate may allow to vary or vacate order 1 above.

3.

A sealed copy of this order be delivered to Giles Geoffrey Woodgate and to the Official Receiver and sent by express post to the respondents on or before close of business on Monday 15 February 2010.

4.

Costs of today are reserved.

THE COURT NOTES THAT:

1.

The usual undertaking as to damages has been given by the applicant.

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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