Miao v Michell

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.