PALMER AS TRUSTEE OF THE REGULATED DEBTOR ESTATE OF LAZAR, IN THE MATTER OF LAZAR (BANKRUPT)

This matter concerned an application brought by the trustee of the regulated debtor estate of Lazar, who was bankrupt, for an order under section 146 of the *Bankruptcy Act 1966* (Cth). The trustee sought to proceed with the distribution of dividends as if the bankrupt had filed a statement of affairs as required by the Act.

The central legal issue before the Court was whether it had the power to make an order under section 146 of the *Bankruptcy Act* to permit the distribution of dividends in circumstances where the bankrupt had failed to file a statement of affairs.

Judge Manousaridis granted the application. The Court reasoned that section 146 of the *Bankruptcy Act* provides a mechanism for the Court to dispense with certain requirements of the Act where it is just and equitable to do so, particularly when a bankrupt has failed to comply with their obligations. The purpose of section 146 is to enable the administration of the bankrupt's estate to proceed efficiently and to allow for the distribution of assets to creditors even in the absence of full compliance by the bankrupt. The Court found that it was just and equitable to make the order sought by the trustee.