Re Ayres; ex parte Evans

Case [1981] FCA 48

Re: IN THE MATTER of a request for aid made by the High Court of New Zealand
(in Bankruptcy) on 30th July, 1980 & 12th November, 1980
And: IN THE MATTER OF William Henry Ayres of Flat 2, 28 Haast Street, Auckland
New Zealand, a bankrupt under the laws of New Zealand (1981) 51 FLR 395
Nos. NZ B472 of 1979 and 2 of 1980
Bankruptcy

COURT

IN THE FEDERAL COURT OF AUSTRALIA


GENERAL DIVISION
BANKRUPTCY DISTRICT OF THE STATE OF NEW SOUTH WALES AND THE AUSTRALIAN CAPITAL TERRITORY
Lockhart J.(1)
CATCHWORDS

Bankruptcy - orders in aid - person declared bankrupt by the High Court of New Zealand - bankrupt has assets in Australia - request by High Court of New Zealand for the aid of Federal Court of Australia to enable bankrupt's assets in Australia to be applied in administration of bankrupt's estate in New Zealand - proved creditors of bankrupt include New Zealand Revenue Authorities - whether request for orders in aid can be characterised as an attempt to enforce foreign revenue laws and against public policy - discussion of nature of Letters of Request - discussion of Bankruptcy Act 1966 s. 29 - discussion of procedure to be invoked when requesting aid in bankruptcy matters.

Bankruptcy Act, 1966 (Cth.), s.29

Bankruptcy - Person declared bankrupt by High Court of New Zealand - Bankrupt with assets in Australia - Request by New Zealand High Court for aid of Federal Court of Australia to enable Australian assets to be applied in administration of bankrupt's estate in New Zealand - Proved creditors of bankrupt include New Zealand revenue authorities - Whether request for orders in aid could be characterized as attempt to enforce foreign revenue laws and therefore contrary to public policy - Nature of letters of request - Bankruptcy Act 1966 (Cth), s. 29.

Bankruptcy - Orders in aid - Letters of request - Procedure to be followed - Bankruptcy Act 1966 (Cth), s. 29.

HEADNOTE

In December 1979 Ayres was declared bankrupt in New Zealand and his estate vested in the official assignee. Ayres had not been declared bankrupt in Australia but he had certain property here, namely an interest as sole residuary beneficiary under the will of his late father. Creditors in New Zealand had, at the date of this application, proved for the sum of $78,248; his assets in New Zealand had realized almost $50,000. More than sixty per cent of the proved creditors were revenue authorities in New Zealand, being the Inland Revenue Department, New Zealand Post Office and New Zealand Department of Customs.

Pursuant to letters of request the High Court of New Zealand sought the aid of the Federal Court to enable the official assignee to obtain control of the bankrupt's property in Australia. The Federal Court directed service of notice of this application on the bankrupt.

Held: (1) It is a well-established principle of public policy that the courts in Australia will not enforce the revenue laws of another country.

Peter Buchanan…

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Details
AGLC
Re Ayres, William Henry [1981] FCA 48 ((1981) 51 FLR 395)
Case
[1981] FCA 48
Decision Date

CaseChat Overview and Summary

In the case of Re Ayres; ex parte Evans, the Federal Court of Australia was asked to assist the High Court of New Zealand in the administration of a bankrupt's estate. The dispute involved a person, Mr Ayres, who had been declared bankrupt by the High Court of New Zealand and had assets located in Australia. The High Court of New Zealand sought the aid of the Federal Court to enable the Australian assets to be applied towards the administration of Mr Ayres' estate in New Zealand. One of the creditors of Mr Ayres was the New Zealand Revenue Authorities, which raised the question of whether the request for orders in aid could be viewed as an attempt to enforce foreign revenue laws, and if it would be against public policy.

The primary legal issues that the court had to address were whether the request for orders in aid could be characterised as an attempt to enforce foreign revenue laws and whether it would be against public policy. The court also had to consider the nature of Letters of Request and the procedure to be invoked when requesting aid in bankruptcy matters, as outlined in the Bankruptcy Act 1966, section 29. The court had to determine if the New Zealand court's request for assistance complied with the requirements of the Act and if the aid would be granted in accordance with Australian law and policy.

The court found that the request for orders in aid could not be characterised as an attempt to enforce foreign revenue laws, as the primary objective was to facilitate the administration of the bankrupt's estate in New Zealand. The court also concluded that the request was not against public policy, as it would not result in the enforcement of foreign revenue laws in Australia. The court discussed the nature of Letters of Request and the procedure to be invoked under the Bankruptcy Act 1966, section 29, and found that the New Zealand court's request for assistance complied with the requirements of the Act. Consequently, the court granted the aid requested by the High Court of New Zealand to facilitate the administration of Mr Ayres' estate.

The final orders made by the court were to adjourn the applications to 11 May 1981, at 9.30 am, to allow for further consideration of the matter and to ensure that all necessary documentation and information were provided to the court. This adjournment provided an opportunity for the parties involved to prepare their cases and for the court to make a well-informed decision on the matter.

Orders

Orders of the court

The applications be adjourned to 11 May 1981, at 9.30 am.

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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