Paule v Kambouris - [2025] FCA 474

FEDERAL COURT OF AUSTRALIA
Paule v Kambouris [2025] FCA 474

File number(s): NSD 403 of 2025
NSD 404 of 2025

Judgment of: NEEDHAM J

Date of judgment: 5 May 2025

Catchwords: BANKRUPTCY – Urgent interim applications to extend time for compliance with Bankruptcy Notices arising out of proceedings in the NSW Supreme Court until 4pm on the date application listed for hearing – extension of time application rejected by Judicial Registrar – application to review Judicial Registrar’s decision proposed – Notice of Appeal filed in the NSW Court of Appeal to be heard on 20 June 2025 – extension of time granted

Legislation: Bankruptcy Act 1966 (Cth) ss 41(6A), 120, 121

Cases cited: Sockhill v Deputy Commissioner of Taxation (2000) 178 ALR 113; [2000] FCA 1208

Division: General Division

Registry: New South Wales

National Practice Area: Commercial and Corporations

Sub-area: General and Personal Insolvency

Number of paragraphs: 8

Date of hearing: 5 May 2025

Counsel for the Applicant: Mr M Davis

Solicitor for the Applicant: Corrs Chambers Westgarth

Counsel for the Respondents: Mr D Birch

Solicitor for the Respondents: McCabes

ORDERS

NSD 403 of 2025

BETWEEN:
TERRY PAULE

Applicant

AND:
AMBROSIOS KAMBOURIS

Respondent

ORDER MADE BY:

NEEDHAM J

DATE OF ORDER:

5 MAY 2025

THE COURT NOTES THAT:
1.   On the applicant giving the undertaking that he will not deal with:
a.   the Toorak Property (being a residential property located at 63 Albany Road, Toorak, Victoria); or
b.   any other property owned by the applicant and for which the applicant holds the beneficial interest, other than in the course of ordinary business,

during the course of these proceedings and, if the relief he seeks is granted in these proceedings, until 21 days after the determination of the Notice of Appeal filed on 19 March 2025 in the New South Wales Court of Appeal,

THE COURT ORDERS THAT:
2.   The applicant file an application for review of the orders of Judicial Registrar Birchall dated 5 May 2025 by 4pm on 8 May 2025 (the review application).
3. Pursuant to s 41(6A) of the Bankruptcy Act 1966 (Cth), the time for compliance with Bankruptcy Notice Number BN276549 issued on 28 February 2025, and served on 6 March 2025, be extended until 4pm on the date of the first hearing before a judge in the review application or until further order.
4.   The applicant to file and serve any further evidence in chief to be relied on at the final hearing by 8 May 2025.
5.   The respondent to file and serve any evidence to be relied on at the final hearing by 14 May 2025.
6.   The applicant to file and serve any reply evidence to be relied on at the final hearing by 16 May 2025.
7.   The matter be referred to the National Operations Registry for allocation to a Docket Judge, with the intention that the matter be listed for hearing at 10:15am on 19 May 2025, with an estimate of half a day.

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Paule v Kambouris

Details

AGLC: Paule v Kambouris [2025] FCA 474
Case: [2025] FCA 474
Decision Date: 5 May 2025

CaseChat Overview and Summary

The case of Paule v Kambouris involves an application by the applicant, Paule, seeking an extension of time to comply with a Bankruptcy Notice issued by the respondent, Kambouris. The application was made in the Federal Court of Australia and was initially dismissed by a Judicial Registrar. Paule has since appealed this decision to the NSW Court of Appeal, where the appeal is scheduled to be heard on 20 June 2025. The primary issue before the court was whether the applicant should be granted an extension of time to comply with the Bankruptcy Notice, as well as the appropriate procedural steps for such an application.

The court was required to consider the procedural fairness in handling the application for an extension of time, as well as the merits of the application itself. It had to determine whether the Judicial Registrar’s decision to reject the extension of time was correct and whether the proposed application for review was in accordance with the relevant legal provisions. The court also needed to evaluate the urgency and merits of the applicant’s request for an extension of time to comply with the Bankruptcy Notice.

In its reasoning, the court found that the Judicial Registrar’s decision did not adequately consider the procedural fairness in handling the application for an extension of time. Consequently, the court granted the application for an extension of time and outlined specific procedural steps that needed to be followed. The applicant was instructed to file an application for review of the Judicial Registrar’s decision by a specified deadline. Furthermore, the court set out detailed timelines for the filing and serving of evidence for the final hearing, and allocated the matter to a Docket Judge for further consideration. The court reserved the decision on costs.

In summary, the court granted the application for an extension of time and outlined specific procedural steps for the review application. It set deadlines for the filing and serving of evidence, allocated the matter to a Docket Judge, and reserved the decision on costs. The matter is now scheduled for hearing on 19 May 2025, with liberty for the parties to apply to the Duty Judge on short notice.

Orders

Orders of the court

2. The applicant file an application for review of the orders of Judicial Registrar Birchall dated 5 May 2025 by 4pm on 8 May 2025 (the review application).

3. Pursuant to s 41(6A) of the Bankruptcy Act 1966 (Cth), the time for compliance with Bankruptcy Notice Number BN276550 issued on 3 March 2025, and served on 6 March 2025, be extended until 4pm on the date of the first hearing before a judge in the review application or until further order.

4. The applicant to file and serve any further evidence in chief to be relied on at the final hearing by 8 May 2025.

5. The respondent to file and serve any evidence to be relied on at the final hearing by 14 May 2025.

6. The applicant to file and serve any reply evidence to be relied on at the final hearing by 16 May 2025.

7. The matter be referred to the National Operations Registry for allocation to a Docket Judge, with the intention that the matter be listed for hearing at 10:15am on 19 May 2025, with an estimate of half a day.

8. Liberty to the parties to apply to the Duty Judge on 2 days’ notice.

9. Costs reserved.

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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File number(s):	NSD 403 of 2025 NSD 404 of 2025
Judgment of:	NEEDHAM J
Date of judgment:	5 May 2025
Catchwords:	BANKRUPTCY – Urgent interim applications to extend time for compliance with Bankruptcy Notices arising out of proceedings in the NSW Supreme Court until 4pm on the date application listed for hearing – extension of time application rejected by Judicial Registrar – application to review Judicial Registrar’s decision proposed – Notice of Appeal filed in the NSW Court of Appeal to be heard on 20 June 2025 – extension of time granted
Legislation:	Bankruptcy Act 1966 (Cth) ss 41(6A), 120, 121
Cases cited:	Sockhill v Deputy Commissioner of Taxation (2000) 178 ALR 113; [2000] FCA 1208
Division:	General Division
Registry:	New South Wales
National Practice Area:	Commercial and Corporations
Sub-area:	General and Personal Insolvency
Number of paragraphs:	8
Date of hearing:	5 May 2025
Counsel for the Applicant:	Mr M Davis
Solicitor for the Applicant:	Corrs Chambers Westgarth
Counsel for the Respondents:	Mr D Birch
Solicitor for the Respondents:	McCabes

ORDER MADE BY:	NEEDHAM J
DATE OF ORDER:	5 MAY 2025