Re: P.N. BURROWS
Ex parte: P.N. BURROWS
No. QB2379 of 1994
FED No. 1028/94
Number of pages - 2
Bankruptcy
COURT
IN THE FEDERAL COURT OF AUSTRALIA
GENERAL DIVISION
BANKRUPTCY DISTRICT OF THE STATE OF QUEENSLAND
KIEFEL J
CATCHWORDS
Bankruptcy - permission to leave Australia - necessary for bankrupt to leave Australia to derive income
Bankruptcy Act 1966 - s 139ZU
HEARING
BRISBANE
#DATE 16:12:1994 Counsel for the applicant: Mr R. Morton
Solicitors for the applicant: Quinn and Company
ORDER
Upon the undertaking of the bankrupt, by his Counsel, to pay to his trustee in bankruptcy such contributions from income derived by him as are properly and lawfully assessed pursuant to Division 4B of Part VI of the Bankruptcy Act 1966 in respect of the second year of proposed employment of him by Al Homaizi Foodstuff Co by equal monthly instalments, each instalment to be paid in advance.
THE COURT ORDERS THAT: 1. The bankrupt, Peter Noel Burrows be granted permission to leave Australia from today's date and for a period of two years from 20 December 1994.
2. This order is granted on the conditions that the bankrupt, whilst outside Australia:-
(a) will return to Australia for the purpose of attending an oral examination conducted under the Bankruptcy Act 1966 upon being given reasonable notice to return by his
trustee in bankruptcy, Philip Graeme Downie;
(b) will return to Australia if reasonably required by his
trustee in bankruptcy to do so on the giving by the
trustee in bankruptcy, of two months written notice to him of that requirement.
THE COURT GRANTS: 3. The bankrupt and the trustee in bankruptcy liberty to apply.
NOTE: Settlement and entry of orders is dealt with in Rule 124 of the Bankruptcy Rules.
JUDGE1
KIEFEL J Mr Burrows, the applicant before me today was made bankrupt on 6 December 1994 on his own petition. He was for many years prior to his bankruptcy a business consultant and his bankruptcy appears to be associated with a venture he undertook after the conclusion of his employment with a firm of accountants.
His trustee reports that, since the date of his bankruptcy, he has been frank in his responses to inquiries and at all times co-operative. The trustee supports this application. The Australian Taxation Office has also granted approval for departure.
Since the difficulties associated with the business venture, Mr Burrows has apparently applied for numerous positions in Australia since about October 1993 and since January 1994 has attempted to obtain employment overseas. He swears that he considered that that was the most likely source of employment and has been proved correct in that he has now been offered a contract of employment in Kuwait for a two year period during which time he would receive a reasonable income.
I am satisfied that it is necessary for the bankrupt to leave Australia in order to continue to derive income. Mr Burrows has a dependant spouse and a partially dependant child in Australia. He has undertaken to return to Australia for the purpose of being orally examined and to return at any other time on two months' notice by his trustee, and that the order be conditioned in the latter respect. He provides a further undertaking to the court to pay to his trustee contributions from his income in his second year of the proposed employment by monthly instalments to be paid in advance and in such sum as may be lawfully assessed under Division 4B of Part VI of the Bankruptcy Act.
In these circumstances, I grant permission to the bankrupt to leave Australia in terms of the draft as amended by me and initialled and placed with the papers.
- AGLC
- Re Burrows, P.N. v. Ex parte Burrows, P.N. [1994] FCA 1028
- Case
- [1994] FCA 1028
- Decision Date
CaseChat Overview and Summary
The central legal issue for the court to resolve is whether the bankrupt's proposed departure from Australia is necessary for him to derive income. Under the Bankruptcy Act, a court may grant a bankrupt permission to leave Australia if it is necessary for the bankrupt to do so to derive income. The court must balance the potential benefits of the bankrupt's employment against the potential prejudice to the estate of the bankrupt.
The court found that it was necessary for Burrows to leave Australia to derive income, as his employment with Al Homaizi Foodstuff Co would provide him with a substantial income that he could not reasonably obtain within Australia. The court also noted that Burrows had provided an undertaking to contribute to his estate from his income abroad, which mitigated the potential prejudice to the estate. Accordingly, the court granted Burrows permission to leave Australia for a period of two years, subject to conditions that he return to Australia for an examination under the Bankruptcy Act and if required by his trustee. The court also granted liberty to apply to vary or discharge the conditions.
In conclusion, the court granted the bankrupt permission to leave Australia for a period of two years, subject to certain conditions. The court found that the potential benefits to the bankrupt's estate outweighed the potential prejudice to the estate, and that the bankrupt had provided an undertaking to contribute to his estate from his income abroad. The court's decision balances the competing interests of the bankrupt and the estate, and ensures that the bankrupt's departure will not prejudice the estate unduly.
Orders
Orders of the court
Upon the undertaking of the bankrupt, by his Counsel, to pay to his trustee in bankruptcy such contributions from income derived by him as are properly and lawfully assessed pursuant to Division 4B of Part VI of the Bankruptcy Act 1966 in respect of the second year of proposed employment of him by Al Homaizi Foodstuff Co by equal monthly instalments, each instalment to be paid in advance.
THE COURT ORDERS THAT: 1. The bankrupt, Peter Noel Burrows be granted permission to leave Australia from today's date and for a period of two years from 20 December 1994.
2. This order is granted on the conditions that the bankrupt, whilst outside Australia:-
(a) will return to Australia for the purpose of attending an oral examination conducted under the Bankruptcy Act 1966 upon being given reasonable notice to return by his
trustee in bankruptcy, Philip Graeme Downie;
(b) will return to Australia if reasonably required by his
trustee in bankruptcy to do so on the giving by the
trustee in bankruptcy, of two months written notice to him of that requirement.
THE COURT GRANTS: 3. The bankrupt and the trustee in bankruptcy liberty to apply.
NOTE: Settlement and entry of orders is dealt with in Rule 124 of the Bankruptcy Rules.
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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