Re Birnzwejg, Nathan

Case [1996] FCA 550


IN THE FEDERAL COURT OF AUSTRALIA     )
GENERAL DIVISION  )
   No. QP100 of 1996
BANKRUPTCY DISTRICT OF THE           )
STATE OF QUEENSLAND                  )

RE:NATHAN BIRNZWEJG and KATHLEEN MAY BIRNZWEJG

EX PARTE:PERMANENT TRUSTEE COMPANY LIMITED

MINUTES OF ORDER

JUDGE MAKING ORDER:     Spender J

DATE OF ORDER:         19 June 1996

WHERE MADE:            Brisbane

THE COURT ORDERS THAT:

  1. A sequestration order be made against the joint and separate estates of the debtors, Nathan Birnzwejg and Kathleen May Birnzwejg.

  1. The petitioning creditor's costs of and incidental to the petition in this matter, including reserved costs, be taxed and paid in accordance with the Bankruptcy Act 1966.

NOTE:     Settlement and entry of orders is dealt with in Rule 124 of the Bankruptcy Rules.

IN THE FEDERAL COURT OF AUSTRALIA     )
GENERAL DIVISION  )
   No. QP100 of 1996
BANKRUPTCY DISTRICT OF THE           )
STATE OF QUEENSLAND                  )

RE:NATHAN BIRNZWEJG and KATHLEEN MAY BIRNZWEJG

EX PARTE:PERMANENT TRUSTEE COMPANY LIMITED

CORAM:    Spender J
DATE:     19 June 1996
PLACE:    Brisbane

REASONS FOR JUDGMENT

I indicated on 12 June 1996 that in my view there would be no utility in acceding to the request by counsel on behalf of the debtors that the petition could be adjourned so as to permit discovery to be made in aid of a claim that there was other sufficient cause why a sequestration order would not be made against the estates of the debtors.

For the reasons which I then published, I was satisfied that I ought to make a sequestration order, but at the request of the solicitors for the debtors, the making of orders was adjourned until this morning so as to permit a consideration of my short reasons for judgment.  The position remains unchanged, and notwithstanding the matters of qualification that are contained in my reasons of 12 June 1996, I am satisfied of the acts of bankruptcy which are alleged in the petition and of the other matters of which the Bankruptcy Act 1966 requires proof.
         I make a sequestration order against the estates of Nathan Birnzwejg and Kathleen May Birnzwejg, and order that the costs of and incidental to the petition including reserved costs be taxed and paid in accordance with the Bankruptcy Act 1966.

I make orders in terms of the draft which are initialled, dated and placed with the papers.

I certify that this and the  preceding page are a true copy of the reasons for judgment herein of the Honourable Justice Spender.

Associate

Date: 25 June 1996

Counsel for the applicant
      debtors              :        Mr P E Hack
instructed by               :        N R Barbi

Counsel for the respondent
     creditor              :        Mr R G Bain QC
instructed by               :        Clayton Utz

Date of Hearing             :        12 June 1996

Details
AGLC
Re Birnzwejg, Nathan [1996] FCA 550
Case
[1996] FCA 550
Decision Date

CaseChat Overview and Summary

Nathan and Kathleen May Birnzwejg were the subject of a bankruptcy petition filed by the Permanent Trustee Company Limited in the Federal Court of Australia. The Birnzwejgs were alleged to have committed acts of bankruptcy, warranting the court's intervention to sequestrate their estates. The case was heard by Justice Spender in the General Division of the court.

The legal issues before the court involved confirming whether the acts of bankruptcy alleged in the petition were indeed committed by the debtors and if there were any grounds to justify not proceeding with the sequestration order against their estates. The court had to evaluate the sufficiency of the evidence provided by the creditor to support the claims of bankruptcy and determine if any exceptional circumstances were present that could prevent the sequestration order.

Justice Spender reviewed the evidence and found that the acts of bankruptcy were substantiated, and there was no sufficient cause to avoid making a sequestration order against the Birnzwejgs' estates. The court rejected the argument for an adjournment to allow further discovery, which was proposed by the debtors' counsel, as there was no utility in delaying the process. The judge was satisfied with the claims made by the creditor and proceeded to issue the sequestration order.

The court ordered the sequestration of the joint and separate estates of Nathan Birnzwejg and Kathleen May Birnzwejg, along with an order for the taxing and payment of costs related to the petition, in accordance with the Bankruptcy Act 1966. This ruling effectively placed the Birnzwejgs under the control of a trustee in bankruptcy, who would manage their assets and liabilities.

Orders

Orders of the court

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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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