National Australia Bank Limited v State of South Australia

Case [2015] FCA 48


FEDERAL COURT OF AUSTRALIA

National Australia Bank Limited v State of South Australia [2015] FCA 48

Citation: National Australia Bank Limited v State of South Australia [2015] FCA 48
Parties: NATIONAL AUSTRALIA BANK LIMITED (ABN 12 004 004 937) v THE STATE OF SOUTH AUSTRALIA and BAYCORP COLLECTIONS PDL (AUSTRALIA) PTY LTD (ACN 119 478 778)
File number: NSD 1260 of 2014
Judge: GRIFFITHS J
Date of judgment: 5 February 2015
Catchwords: PRACTICE AND PROCEDURE – adjournment of hearing to enable a third party to consider whether she wished to be heard on an application under s 133(9) of the Bankruptcy Act 1966 (Cth).
Legislation: Bankruptcy Act 1966 (Cth) s 133(9)
Date of hearing: 5 February 2015
Place: Sydney
Division: GENERAL DIVISION
Category: Catchwords
Number of paragraphs: 7
Counsel for the Applicant: J White with D Elliott
Solicitor for the Applicant: DibbsBarker
Counsel for the Respondents: The respondent did not appear.

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 1260 of 2014

BETWEEN:

NATIONAL AUSTRALIA BANK LIMITED (ABN 12 004 004 937)
Applicant

AND:

THE STATE OF SOUTH AUSTRALIA
First Respondent

BAYCORP COLLECTIONS PDL (AUSTRALIA) PTY LTD (ACN 119 478 778)
Second Respondent

JUDGE:

GRIFFITHS J

DATE OF ORDER:

5 FEBRUARY 2015

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.The hearing of the originating application be adjourned to 10.15 am on 17 March 2015.

2.On or before close of business on 12 February 2015, the applicant is to serve on Mrs Judith Siegmann, by registered post, at 7 Dalziel Street, Whyalla Playford in the State of South Australia:

(a)the originating application;

(b)the affidavit in support of Edward Grieve;

(c)the applicant’s outline of written submissions;

(d)Exhibit A;

(e)a copy of the ex tempore reasons; and

(f)a copy of these orders.

3.The applicant is to advise Mrs Siegmann that the originating application will be heard on 17 March 2015 commencing at 10.15 am.

4.The applicant has liberty to apply on the giving of 24 hours’ notice.

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


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 1260 of 2014

BETWEEN:

NATIONAL AUSTRALIA BANK LIMITED (ABN 12 004 004 937)
Applicant

AND:

THE STATE OF SOUTH AUSTRALIA
First Respondent

BAYCORP COLLECTIONS PDL (AUSTRALIA) PTY LTD (ACN 119 478 778)
Second Respondent

JUDGE:

GRIFFITHS J

DATE:

5 FEBRUARY 2015

PLACE:

SYDNEY

REASONS FOR JUDGMENT

  1. An originating application dated 3 December 2014 came on for hearing before me this morning. The applicant seeks an order vesting certain property in it pursuant to s 133(9) of the Bankruptcy Act 1966 (Cth) (Bankruptcy Act).

  2. The applicant, National Australia Bank Limited (NAB), was represented by counsel.  Submitting notices had been served by two other parties who arguably have an interest in the property the subject of these proceedings.

  3. Mr White, who appeared with Mr Elliot for the NAB, read an affidavit in support by Mr Edward Grieve.  He also tendered a bundle of correspondence between the bank’s solicitors and Mrs Judith Siegmann.

  4. Mrs Siegmann is not a party to the proceedings nor, on the face of the documents before the Court, does she appear to have an interest in the subject property within the meaning of s 133(9) of the Bankruptcy Act. However, it is evident from correspondence which has been tendered (Exhibit A), that the Siegmanns were not in default of monthly repayments of the mortgage relating to the subject property. Mrs Siegmann asserted in a letter dated 18 August 2014 that she was still in a position to make those repayments.

  5. It is unclear from the material that is currently before the Court whether Mrs Siegmann could have an interest in property for the purposes of s 133(9) of the Bankruptcy Act. It may be that she wishes to be heard on this question or make submissions generally as to the order sought by the applicant. It is to be noted in this context that s 133(9) of the Bankruptcy Act contemplates that the Court, in determining whether to exercise its discretion under that provision, may hear from such persons as it thinks fit.

  6. In my view, it is appropriate that Mrs Siegmann be given notice of the application and the supporting documents, and that she be provided with an opportunity to seek whatever legal advice she may wish, and determine whether or not she wishes to take the necessary steps to be heard in respect of the originating application.

  7. For those reasons, I consider that it is appropriate to adjourn the hearing of the originating application to 10.15 am on 17 March 2015, and to make appropriate orders, with a view to ensuring that Mrs Siegmann is given notice of the proceedings and an opportunity to consider whether she wishes to be heard in respect of the originating application.

I certify that the preceding seven (7) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Griffiths.


Associate:        

Dated:        5 February 2015

Details
AGLC
National Australia Bank Limited v State of South Australia [2015] FCA 48
Case
[2015] FCA 48
Decision Date

CaseChat Overview and Summary

National Australia Bank Limited brought an application against the State of South Australia, which was heard in the Federal Court of Australia. The dispute centred around the interpretation and application of a particular section of the Bankruptcy Act 1966, specifically section 133(9), which deals with the distribution of assets during bankruptcy proceedings. The Bank sought to have certain assets distributed in a manner that favoured its interests, while the State argued for a different distribution that aligned with its interpretation of the statute.

The court was required to decide whether the third party, Mrs Judith Siegmann, should be given an opportunity to be heard on the application, in accordance with section 133(9) of the Act. The primary issue was whether the third party had a sufficient interest in the matter to warrant her involvement in the proceedings, and if so, whether she should be given notice of the application and an opportunity to be heard.

The court found that Mrs Siegmann did have a sufficient interest in the matter, given her potential entitlement to certain assets under the Bankruptcy Act. Consequently, the court determined that it was appropriate to adjourn the hearing to allow Mrs Siegmann to consider whether she wished to be heard on the application. The court set out detailed orders for the service of documents and the timing of the hearing, ensuring that Mrs Siegmann would be adequately informed and given a reasonable opportunity to participate in the proceedings.

The court made several orders to facilitate the process, including the adjournment of the hearing, the service of various documents to Mrs Siegmann, and granting the Bank liberty to apply for further orders if necessary. The court's decision highlighted the importance of ensuring that all relevant parties with an interest in the outcome of the proceedings are given the opportunity to be heard, in accordance with the provisions of the Bankruptcy Act.

Orders

Orders of the court

1. The hearing of the originating application be adjourned to 10.15 am on 17 March 2015.

2. On or before close of business on 12 February 2015, the applicant is to serve on Mrs Judith Siegmann, by registered post, at 7 Dalziel Street, Whyalla Playford in the State of South Australia:

(a) the originating application;

(b) the affidavit in support of Edward Grieve;

(c) the applicant’s outline of written submissions;

(d) Exhibit A;

(e) a copy of the ex tempore reasons; and

(f) a copy of these orders.

3. The applicant is to advise Mrs Siegmann that the originating application will be heard on 17 March 2015 commencing at 10.15 am.

4. The applicant has liberty to apply on the giving of 24 hours’ notice.

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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