Re Bendel, David; Bendel, David v Pattison, Paul Anthony (as Trustee of the Bankrupt Estate of David Bendel)

[1997] FCA 1572

IN THE FEDERAL COURT OF AUSTRALIA	NOT FOR GENERAL   DISTRIBUTION
VICTORIA DISTRICT REGISTRY	VB 1083 of 1996

RE:                DAVID BENDEL

EX PARTE:  DAVID BENDEL
  APPLICANT

AND:             PAUL ANTHONY PATTISON (AS TRUSTEE OF THE
  BANKRUPT ESTATE OF DAVID BENDEL)
  RESPONDENT

RE:                DAVID BENDEL

EX PARTE:  SASH INVESTMENTS PTY LTD
  ACN: 004 667 565
  APPLICANT

AND:             PAUL ANTHONY PATTISON (AS TRUSTEE OF THE
  BANKRUPT ESTATE OF DAVID BENDEL)
  RESPONDENT

RE:                DAVID BENDEL

EX PARTE:  SKILLMARK INVESTMENTS PTY LTD
  ACN: 004 008 457
  APPLICANT

AND:             PAUL ANTHONY PATTISON (AS TRUSTEE OF THE
  BANKRUPT ESTATE OF DAVID BENDEL)
  RESPONDENT

RE:                DAVID BENDEL

EX PARTE:  ORBACH HOLDINGS PTY LTD
  ACN: 004 363 213
  APPLICANT

AND:             PAUL ANTHONY PATTISON (AS TRUSTEE OF THE
  BANKRUPT ESTATE OF DAVID BENDEL)
  RESPONDENT

JUDGE:	HEEREY J
DATE OF ORDER:	16 DECEMBER 1997
WHERE MADE:	MELBOURNE

REASONS FOR JUDGMENT

I think it is appropriate in the case of Sash Investments Pty Ltd that there be an order for costs on an indemnity basis.  There was substantial fraud, as I find, not merely in the subject matter of the litigation but in the way the case was presented to the Court.  It is true that I have directed the matter be referred to the prosecuting authorities, but that seems to me quite separate from the justified claim of the trustee not to be out of pocket when litigation has been pursued against him on a fraudulent basis.  It is a matter for discretion, as counsel rightly concedes, but the case of Australian Guarantee Corporation Limited v De Jager [1984] VR 483 at 502 provides a good example of an award of costs other than party and party costs on a similar basis.

I think it is appropriate that I order in the Orbach case that the costs of the applicant, Orbach Holdings Ltd, be paid out of the estate and rank as costs of administration.

I certify that this and the preceding  page are a true copy of the Reasons for Judgment herein of the Honourable Justice Heerey

Associate:

Dated:            16 December 1997

Counsel for the Applicant:	T Irlicht
Solicitor for the Ap  plicant:	Irlicht & Broberg
Counsel for the Respondent:	J Delany
Solicitor for the Respondent:	Cornwall Stodart
Date of Hearing:	16 December 1997
Date of Judgment:	16 December 1997