Nunn v Citigroup Pty Ltd

FEDERAL MAGISTRATES COURT OF AUSTRALIA

NUNN v CITIGROUP PTY LTD [2011] FMCA 1045

BANKRUPTCY – Application for Review of Registrar’s decision to make a sequestration order – application dismissed.

Bankruptcy Act 1966, ss.43, 44(1)(a)(c) and 47(1)
Federal Magistrates Court (Bankruptcy) Rules 2006, rr.4.02(2), 4.04(1)(a), 4.05 and 16.01(01)(c)

Moran v Lydiard Financial Service Propriety Limited [2007] FCA 872
Cottrell v Nicholls as trustee in the Estate of Cottrell [2004] FCA 102

Applicant: ROGER BRADFORD NUNN

Respondent: CITIGROUP PTY LTD

File Number: ADG 110 of 2011

Judgment of: Simpson FM

Hearing date: 8 December 2011

Date of Last Submission: 8 December 2011

Delivered at: Adelaide

Delivered on: 8 December 2011

Settled on: 10 January 2012

REPRESENTATION

Applicant: Mr Nunn in person

Counsel for the Respondent: Mr S Thomas

Solicitors for the Respondent: William Roberts Lawyers

ORDERS

1. The Application for Review filed on 3 November 2011 is dismissed.

2. The Sequestration Order of Registrar Christie of 20 October 2011 is affirmed.

3. The Applicant creditor’s costs of the Review are to be taxed pursuant to Order 62 of the Federal Court Rules and be paid from the bankrupt estate of the Respondent debtor in accordance with the Bankruptcy Act 1966.

4. The applicant debtor’s application for a stay is refused.

FEDERAL MAGISTRATES
COURT OF AUSTRALIA
AT ADELAIDE

ADG 110 of 2011

ROGER BRADFORD NUNN

Applicant

And

CITIGROUP PTY LTD

Respondent

REASONS FOR JUDGMENT

Ex Tempore

1. I have before me an Application for Review brought by Roger Bradford Nunn (“Mr Nunn”) on 3 November 2011[1].  The review is of a decision of Registrar Christie made on 20 October 2011, at which time the learned Registrar made a sequestration order against the estate of Mr Nunn and ordered that he pay the applicant creditor’s costs.  I heard the application yesterday and adjourned the matter to today to give these ex-tempore reasons so that the matter would be dealt with before the Christmas break. 

   [1]     Throughout these reasons for the purpose of consistency, I will refer to the creditor, Citigroup Pty Ltd, as the applicant and the bankrupt, Roger Bradford Nunn (“Mr Nunn”) as the respondent notwithstanding that the application for review has been brought by Mr Nunn.

2. The applicant creditor, Citigroup Proprietary Limited. seeks a sequestration order under s.43 of the Bankruptcy Act 1966 (“the Act”) against the estate of Mr Nunn.

3. The petition relies on an act of bankruptcy, namely, Mr Nunn’s failure to comply on or before 6 April 2011 with the requirements of a bankruptcy notice served on him on 16 March 2011, or to satisfy the court that he had a counter-claim set off or cross-demand equal to or more than the sum claimed in the bankruptcy notice, being a counter-claim set off or cross-demand that he could not have set up in the action in which the judgment referred to in the bankruptcy notice was obtained. 

4. I note the following matters:

   a)Firstly, the debt is for $24,231.50 and is, therefore, greater than the amount specified in s.44(1)(a) of the Act;