FEDERAL COURT OF AUSTRALIA
Nixon (Trustee) [2018] FCA 720
File number: QUD 243 of 2018 Judge: COLLIER J Date of judgment: 21 May 2018 Catchwords: BANKRUPTCY AND INSOLVENCY – application for voluntary resignation of a joint trustee in bankruptcy to be accepted – where one joint trustee in bankruptcy will continue as sole trustee in bankruptcy
BANKRUPTCY AND INSOLVENCY – application for voluntary removal of one liquidator and appointment of another liquidator
PRACTICE AND PROCEDURE – application to dispense with rules relating to service – where cost of individual service to numerous bankrupt estates would be significant – whether utility in liquidator of company serving documents upon themselves
Legislation: Bankruptcy Act 1966 (Cth) s 180
Corporations Act 2001 (Cth) Sch 2 ss 90-15, 90-20
Federal Court Rules 2011 (Cth) r 1.34
Federal Court (Bankruptcy) Rules 2016 (Cth) rr 1.04(2)(a), 8.02(4)(a), 8.02(4)(b)
Federal Court (Corporations) Rules 2000 (Cth) rr 1.3(a), 2.7(1), 2.8(1)
Cases cited: Condon v Watson [2009] FCA 11; (2009) 174 FCR 314
Emerton Pty Ltd v Referral Marketing Services Pty Ltd & Ors [2009] NSWSC 738
Nixon, in the matter of Nixon [2015] FCA 976
Shanahan, in the matter of Shanahan [2014] FCA 1080
Date of hearing: 21 May 2018 Registry: Queensland Division: General Division National Practice Area: Commercial and Corporations Sub-area: General and Personal Insolvency Category: Catchwords Number of paragraphs: 17 Solicitor for the Applicants: Mr M Downes of Mahoneys ORDERS
QUD 243 of 2018 BRENDAN NIXON
First Applicant
LEON LEE
Second Applicant
JUDGE:
COLLIER J
DATE OF ORDER:
21 MAY 2018
THE COURT ORDERS THAT:
1.In respect of each of the estates set out in Schedule 1 of these orders:
(a)Pursuant to r 1.34 of the Federal Court Rules 2011 (Cth) (the Rules), compliance with the requirements of r 8.02(4)(b) of the Federal Court (Bankruptcy) Rules 2016 (Cth) be dispensed with.
(b)Pursuant to s 180 and Sch 2 s 90-15(1) of the Bankruptcy Act 1966 (Cth):
(i)the resignation of Leon Lee (the Second Applicant) as one of the two trustees of the estate be accepted; and
(ii)from the acceptance of the Second Applicant's resignation, Brendan Joseph Nixon (the First Applicant) be the sole trustee of the estate and be entitled and obliged to act as such.
2.In respect of each of the liquidations set out in Schedule 2 of these orders:
(a)Pursuant to r 1.34 of the Rules and r 1.3(2) of the Federal Court (Corporations) Rules 2000 (Cth) (the Corporations Rules), compliance with the requirements of r 2.7(1)(b) of the Corporations Rules be dispensed with.
(b)Pursuant to Sch 2 s 90-15(1) of the Corporations Act 2001 (Cth):
(i)The Second Applicant be removed as liquidator; and
(ii)The First Applicant be appointed as liquidator.
SCHEDULE 1
Appointment Appointment Type Sole/joint Date of Appointment Brett Adam Roland Bankruptcy Joint 10/03/2018 Robert Balfour Gibb Bankruptcy Joint 09/03/2017 Stephen McGavin & Kathryn McGavin Bankruptcy Joint 14/09/2016 Michael Tandean Bankruptcy Joint 19/10/2016 Krystina Banks Bankruptcy Joint 12/09/2016 Gerald Peter Birt (s 81A transfer on 28 Oct. 2016)
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- Nixon (Trustee) [2018] FCA 720
- Case
- [2018] FCA 720
- Decision Date
CaseChat Overview and Summary
Orders
Orders of the court
1. In respect of each of the estates set out in Schedule 1 of these orders:
(a) Pursuant to r 1.34 of the Federal Court Rules 2011 (Cth) (the Rules), compliance with the requirements of r 8.02(4)(b) of the Federal Court (Bankruptcy) Rules 2016 (Cth) be dispensed with.
(b) Pursuant to s 180 and Sch 2 s 90-15(1) of the Bankruptcy Act 1966 (Cth):
(i) the resignation of Leon Lee (the Second Applicant) as one of the two trustees of the estate be accepted; and
(ii) from the acceptance of the Second Applicant's resignation, Brendan Joseph Nixon (the First Applicant) be the sole trustee of the estate and be entitled and obliged to act as such.
2. In respect of each of the liquidations set out in Schedule 2 of these orders:
(a) Pursuant to r 1.34 of the Rules and r 1.3(2) of the Federal Court (Corporations) Rules 2000 (Cth) (the Corporations Rules), compliance with the requirements of r 2.7(1)(b) of the Corporations Rules be dispensed with.
(b) Pursuant to Sch 2 s 90-15(1) of the Corporations Act 2001 (Cth):
(i) The Second Applicant be removed as liquidator; and
(ii) The First Applicant be appointed as liquidator.
SCHEDULE 1
Appointment
Appointment Type
Sole/joint
Date of Appointment
Brett Adam Roland
Bankruptcy
Joint
10/03/2018
Robert Balfour Gibb
Bankruptcy
Joint
09/03/2017
Stephen McGavin & Kathryn McGavin
Bankruptcy
Joint
14/09/2016
Michael Tandean
Bankruptcy
Joint
19/10/2016
Krystina Banks
Bankruptcy
Joint
12/09/2016
Gerald Peter Birt (s 81A transfer on 28 Oct. 2016)
Bankruptcy
Joint
14/09/2016
Garry James Fleming
Bankruptcy
Joint
27/10/2016
Antonio Rocca
Bankruptcy
Joint
24/11/2016
Paul Edward Beaton
Bankruptcy
Joint
27/10/2016
Moneil Mitesh Chand
Bankruptcy
Joint
21/12/2016
Michael Gordon Gilmont
Bankruptcy
Joint
25/01/2017
Janessa Maylene Gilmont
Bankruptcy
Joint
22/03/2017
Raymond Bible
Bankruptcy
Joint
08/02/2017
Asif Iqbal
Bankruptcy
Joint
02/02/2017
Drakos, Kosta
Bankruptcy
Joint
25/11/2016
Faye Robyn Reis
Bankruptcy
Joint
13/12/2016
Richard Thomas Howard
Bankruptcy
Joint
15/02/2017
Jason Frederick Hancock
Bankruptcy
Joint
16/03/2017
Shane William Rawlings
Bankruptcy
Joint
01/03/2017
Slamar, Troy
Bankruptcy
Joint
22/03/2017
Lee, Chee Keong
Bankruptcy
Joint
16/02/2017
Mannion, Jennifer
Bankruptcy
Joint
02/08/2017
Tait, Nathan
Bankruptcy
Joint
14/02/2017
Jack Henry Blinco
Bankruptcy
Joint
03/05/2017
Shane William Squires
Bankruptcy
Joint
05/04/2017
Wayne Travis Case
Bankruptcy
Joint
03/08/2017
Katie Ruth Cook
Bankruptcy
Joint
10/03/2017
John Victor Duckham
Bankruptcy
Joint
10/05/2017
Timothy Clive Campion
Bankruptcy
Joint
25/05/2017
Jagdeep Singh
Bankruptcy
Joint
25/05/2017
Jubeda Bi Balcaceres
Bankruptcy
Joint
03/08/2017
Matthew John Curtain
Bankruptcy
Joint
19/07/2017
William David John Cashmore
Bankruptcy
Joint
06/09/2017
Clarence Edward Cain
Bankruptcy
Joint
03/08/2017
Brandt William Cain
Bankruptcy
Joint
03/08/2017
Robert Patrick Laurie
Bankruptcy
Joint
27/06/2017
Robert Umberto Palmieri
Bankruptcy
Joint
11/10/2017
David Michael Cranny
Bankruptcy
Joint
30/11/2017
Matthew George Rennie
Bankruptcy
Joint
30/08/2017
Anne Beel
Bankruptcy
Joint
25/10/2017
Moana Harriette Hislop
Bankruptcy
Joint
27/09/2017
Michael Anthony Rodrigues
Bankruptcy
Joint
14/09/2017
Peter Warren Costigan
Bankruptcy
Joint
16/11/2017
Peter Soulios
Bankruptcy
Joint
26/10/2017
Andrew James Lea
Bankruptcy
Joint
09/11/2017
Kathleen Mary Connolly
Bankruptcy
Joint
16/11/2017
Daryl Duncanson
Bankruptcy
Joint
04/10/2017
Paul Leslie Gibb
Bankruptcy
Joint
26/10/2017
Margaret Maree Gal
Bankruptcy
Joint
22/02/2018
Nektarios Diamantis Langanis
Bankruptcy
Joint
08/02/2018
Craig Fahey
Bankruptcy
Joint
07/02/2018
Anthony Rickman
Bankruptcy
Joint
07/02/2018
Terry Francis Dillon
Bankruptcy
Joint
14/02/2018
Ronaldo Adriano Mendes Do Santos
Bankruptcy
Joint
07/02/2018
SCHEDULE 2
Appointment
Appointment
Type
Sole/joint
Date of
Appointment
Continental Cafe Albert Park Pty Ltd
CVL
Sole
08/01/2018
B & C Steele Investments Pty Ltd
CVL
Sole
29/01/2018
Ortrox Pty Ltd
OL
Sole
09/03/2018
Mobile One Australia Pty Ltd
CVL
Sole
08/02/2018
Tau Moemai Pty Ltd
CVL
Sole
16/02/2018
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
For present purposes, s 90-15 of Sch 2 of the Corporations Act relevantly provides:90-15 Court may make orders in relation to external administrationCourt may make orders(1)The Court may make such orders as it thinks fit in relation to the external administration of a company.Orders on own initiative or on application(2)The Court may exercise the power under subsection (1):(a)on its own initiative, during proceedings before the Court; or(b)on application under section 90-20.Examples of orders that may be made(3) Without limiting subsection (1), those orders may include any one or more of the following:…(b)an order that a person cease to be the external administrator of the company;(c)an order that another registered liquidator be appointed as the external administrator of the company;……Section does not limit Court’s powers(7)This section does not limit the Court’s powers under any other provision of this Act, or under any other law. I am satisfied in the circumstances where:·Mr Lee has resigned from his employment;·there is no utility in requiring the applicants serve one of themselves with this application;·Mr Nixon has consented to being appointed the liquidator, will retain the file accountants presently overseeing the liquidations and will not charge for familiarising himself with the liquidations; and ·ASIC was given notice of the application and has not raised any oppositionthat there would be no prejudice to any of the Companies by:·dispensing with the usual requirements for service of this application under the Corporations Rules;·removing Mr Lee as the liquidator; and·appointing Mr Nixon as the liquidator.CONCLUSION Having considered the material provided in the application and supporting affidavits filed by the applicants, it is appropriate for the Court to make the orders sought.