Miao v Michell

Case [2015] FCA 22


FEDERAL COURT OF AUSTRALIA

Miao v Michell [2015] FCA 22

Citation: Miao v Michell [2015] FCA 22
Parties: SHIRLEY MIAO v STEPHEN JOHN MICHELL
File number: VID 17 of 2015
Judge: BEACH J
Date of judgment: 27 January 2015
Catchwords: BANKRUPTCY – application for review of decision of trustee under s 178 of the Bankruptcy Act 1966 (Cth) – restriction on travel – supervisory jurisdiction – whether proposed travel genuine – whether likely that the bankrupt will return to Australia – whether likely that proposed travel will hamper the administration of the estate – application granted subject to undertaking and conditions
Legislation: Bankruptcy Act 1966 (Cth) ss 77(1)(a)(ii), 149D(1)(h), 178, 272
Cases cited: Healey v Prentice (No 2) [2000] FCA 1598
Macchia v Nilant (2001) 110 FCR 101
Re Hicks; Ex parte Lamb (1994) 217 ALR 195
Re Molina; Ex parte Wily [1995] FCA 1057
Re Tyndall; Ex parte Official Receiver (1977) 17 ALR 182
Date of hearing: 23 and 27 January 2015
Place: Melbourne
Division: GENERAL DIVISION
Category: Catchwords
Number of paragraphs: 37
Counsel for the Applicant: The Applicant appeared in person
Solicitors for the Respondent: Ms K Poulakis of MSB Lawyers

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

GENERAL DIVISION

VID 17 of 2015

BETWEEN:

SHIRLEY MIAO
Applicant

AND:

STEPHEN JOHN MICHELL
Respondent

JUDGE:

BEACH J

DATE OF ORDER:

27 JANUARY 2015

WHERE MADE:

MELBOURNE

THE COURT NOTES THAT:

Upon the undertaking being given to the Court by the applicant to return to Australia at the request of the respondent (the trustee).

THE COURT ORDERS THAT:

1.The trustee's decision of 5 January 2015 be set aside.

2.The trustee is directed to consent to the applicant leaving Australia and if in his possession to return her passport forthwith, subject to the following conditions:

(a)She maintain the addresses whilst she is abroad and/or in Australia of which she has currently notified the trustee.

(b)She consents to the trustee sending correspondence in connection to the administration of her estate to any one of such contact addresses for the purpose of service of any document.

(c)She forthwith provides to the trustee a duly completed statement of affairs.

(d)She provide full copies to the trustee of airline tickets from and to Australia.

(e)She advises the trustee of the source or sources of funds for any such travel.

(f)She notifies the trustee in writing of any change to her residential address in Australia within seven days of the date of any change.

3.There be no order for costs in favour of the applicant.

4.The trustee's costs of and incidental to the application be treated as his costs and expenses of the administration of the applicant's estate.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

GENERAL DIVISION

VID 17 of 2015

BETWEEN:

SHIRLEY MIAO
Applicant

AND:

STEPHEN JOHN MICHELL
Respondent

JUDGE:

BEACH J

DATE:

27 JANUARY 2015

PLACE:

MELBOURNE

REASONS FOR JUDGMENT

  1. The applicant has…

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AGLC
Miao v Michell [2015] FCA 22
Case
[2015] FCA 22
Decision Date

CaseChat Overview and Summary

Miao, a bankrupt, applied to the Federal Court to review the decision of the trustee, Michell, who had refused her request to leave Australia for a period of time. The matter came before the court under section 178 of the Bankruptcy Act 1966 (Cth). The primary issue was whether the proposed travel by the bankrupt was genuine, and if it was likely that she would return to Australia and if the travel would impede the administration of her estate.

The court held that the trustee's decision was made without proper consideration of the evidence before him. The bankrupt had provided evidence of genuine intent to travel and had demonstrated that she would return to Australia. The court found that the trustee's concerns about the bankrupt's ability to return were not supported by the evidence. Additionally, the court held that the travel would not impede the administration of the estate, provided certain conditions were met.

The court granted the application and set aside the trustee's decision. The bankrupt was permitted to leave Australia, subject to providing the trustee with various documents and information, including a statement of affairs, copies of airline tickets, and details of the source of funds for the travel. The bankrupt was also required to maintain contact addresses and notify the trustee of any changes to her residential address. The court made no order for costs in favour of the applicant, but directed that the trustee's costs of and incidental to the application be treated as his costs and expenses of the administration of the bankrupt's estate.

Orders

Orders of the court

1. The trustee's decision of 5 January 2015 be set aside.

2. The trustee is directed to consent to the applicant leaving Australia and if in his possession to return her passport forthwith, subject to the following conditions:

(a) She maintain the addresses whilst she is abroad and/or in Australia of which she has currently notified the trustee.

(b) She consents to the trustee sending correspondence in connection to the administration of her estate to any one of such contact addresses for the purpose of service of any document.

(c) She forthwith provides to the trustee a duly completed statement of affairs.

(d) She provide full copies to the trustee of airline tickets from and to Australia.

(e) She advises the trustee of the source or sources of funds for any such travel.

(f) She notifies the trustee in writing of any change to her residential address in Australia within seven days of the date of any change.

3. There be no order for costs in favour of the applicant.

4. The trustee's costs of and incidental to the application be treated as his costs and expenses of the administration of the applicant's estate.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

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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