FEDERAL COURT OF AUSTRALIA
Pekar v Jess (Trustee) [2021] FCA 1325
Appeal from: Pekar v Holden (Trustee) [2017] FCA 596 File number(s): VID 81 of 2017 Judgment of: O'CALLAGHAN J Date of judgment: 27 October 2021 Catchwords: BANKRUPTCY – application to set aside orders for possession of the home of the appellant and her husband (a former bankrupt) – application dismissed
PRACTICE AND PROCEDURE – application for leave to institute proceedings – where applicant previously declared vexatious and prohibited from instituting proceedings under s 37AO(2)(b) of the Federal Court of Australia Act 1976 (Cth) – application dismissed
Legislation: Bankruptcy Act 1966 (Cth) s 58(2)
Transfer of Land Act 1958 (Vic) s 51(2)
Cases cited: Pekar v Jess (Trustee) [2020] FCA 1250 Division: General Division Registry: Victoria National Practice Area: Commercial and Corporations Sub-area: General and Personal Insolvency Number of paragraphs: 15 Date of hearing: 27 October 2021 Counsel for the Appellant: The appellant appeared in person, with the assistance of her husband, Mr Fima Pekar Solicitor for the Respondent: Mr J Blaskovic of Rothwell Lawyers Pty Ltd ORDERS
VID 81 of 2017 BETWEEN: IDA PEKAR
Appellant
AND: MATTHEW JAMES JESS AND MATTHEW KUCIANSKI AS JOINT TRUSTEES IN BANKRUPTCY FOR THE ESTATE OF FIMA PEKAR
Respondent
ORDER MADE BY:
O'CALLAGHAN J
DATE OF ORDER:
27 OCTOBER 2021
THE COURT ORDERS THAT:
1.The appellant’s interlocutory application dated 5 July 2021 be dismissed.
2.Mr Fima Pekar’s application for leave to institute a proceeding dated 18 May 2021 be dismissed.
3.The respondents’ costs of the applications be taxed and paid out of Mr Fima Pekar’s bankrupt estate in accordance with s 109(1)(a) of the Bankruptcy Act 1966 (Cth).
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
REASONS FOR JUDGMENT
Revised from transcriptO’CALLAGHAN J:
I have before me two applications. The first is brought by Mrs Ida Pekar against the respondent trustees of the bankrupt estate of Mr Fima Pekar, seeking the setting aside of orders made by Tracey J on 30 May 2017. The second application is brought by Mr Pekar, seeking leave to institute a proceeding under the Bankruptcy Act 1966 (Cth) (Bankruptcy Act) and the Federal Court of Australia Act 1976 (Cth) for annulment of his bankruptcy. He needs such leave because on 26 February 2021 Snaden J made an order that, pursuant to s 37AO(2)(b) of the Federal Court of Australia Act 1976 (Cth), Mr Pekar be prohibited from instituting in any registry of the Federal Court of Australia any proceedings other than proceedings instituted pursuant to s 104 of the Bankruptcy Act.
The relevant history is set out in the judgment of Moshinsky J in Pekar v Jess (Trustee) [2020] FCA 1250 from [11]–[51]. No purpose is served in repeating what his Honour said.
At the hearing this morning, Mr Pekar appeared self‑represented. I also granted him leave to make submissions on behalf of Mrs Pekar.
The submissions in support of both applications were similar. I should also…
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- AGLC
- Pekar v Jess (Trustee) [2021] FCA 1325
- Case
- [2021] FCA 1325
- Decision Date
CaseChat Overview and Summary
The court was required to determine several key legal issues. Firstly, whether the possession orders were valid and enforceable against the Pekar's. Secondly, whether the appellant had standing to bring the application on behalf of her husband, given his status as a bankrupt. Thirdly, whether Mr Pekar's application for leave to institute proceedings should be granted, considering that he had previously been declared a vexatious litigant and was prohibited from instituting further proceedings without leave under section 37AO(2)(b) of the Federal Court of Australia Act 1976.
The court found that the possession orders were valid and enforceable against Mr Pekar. It was held that the appellant did not have standing to bring the application on behalf of her husband as the orders directly affected Mr Pekar's bankrupt estate. Additionally, the court dismissed Mr Pekar's application for leave to institute proceedings, upholding the prohibition on him instituting further proceedings without leave. The court concluded that there were no exceptional circumstances warranting an exception to the prohibition. The costs of both applications were ordered to be paid out of Mr Pekar's bankrupt estate in accordance with section 109(1)(a) of the Bankruptcy Act 1966.
Orders
Orders of the court
1. The appellant’s interlocutory application dated 5 July 2021 be dismissed.
2. Mr Fima Pekar’s application for leave to institute a proceeding dated 18 May 2021 be dismissed.
3. The respondents’ costs of the applications be taxed and paid out of Mr Fima Pekar’s bankrupt estate in accordance with s 109(1)(a) of the Bankruptcy Act 1966 (Cth).
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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