Re Murphie, R.J

Case [1992] FCA 240


IN THE FEDERAL COURT OF AUSTFUUIA

GENERAL DIVISION
BANKRUPTCY DISTRICT

OF THE STATE OF OUEENSLAND

No OB 2398 of 1991

RE: ROBERT JOHN MURPHIE

Debtor

MINUTES OF ORDER

JUDGE MAKING ORDER:  Cooper J
DATE OF ORDER:  7 April, 1992
WHERE MADE:  Brisbane
THE COURT ORDERS THAT: 

1.        The application is dismissed.

Note-
-- Settlement and entry of orders is dealt with in Rule
124 of the Bankruptcy Rules.

IN THE FEDERAL COURT OF AUSTRALIA
GENERAL DIVISION
BANKRUPTCY DISTRICT

OF THE STATE OF OUEENSLAND

No OB 2398 of 1991

RE: ROBERT JOHN MURPHIE

Debtor

C O W :  Cooper J
DATE :  7 April, 1992
PLACE :  Brisbane

EX TEMPORE REASONS FOR JUDGMENT

This is an application by the bankrupt, Robert John Murphie, for discharge from his bankruptcy. The bankrupt was declared bankrupt on his own petition on 22 October, 1991.

The court has before it a list of the creditors of
the bankrupt, the majority of which in terms of number either

do not oppose or did not respond to notice being given of the

Colin David Giddings, appears and does oppose the discharge of application to the court today. The major creditor, however,

the bankrupt at this time in circumstances where Mr. Giddings claims a debt of approximately $28,000.00 which debt has not been satisfied in whole or in part by the payment of any dividend by the estate.

A perusal of the report of the Official Receiver and the affidavit of the applicant shows that the applicant has no assets and no income which as a matter of probability will lead to the payment of a dividend at any future time. He was severely injured in or about 1983 and as a result of those injuries has proceedings on foot in the Supreme Court of Queensland seeking substantial damages. Unfortunately, those proceedings are not moving ahead at any great rate.

The primary ground put forward by the applicant for his discharge is contained in paragraph 18 of his affidavit in support of the application which reads :-

" I c o n s i d e r t h a t should m y bankrup tcy
c o n t i n u e f o r t h e t h r e e y e a r p e r i o d no
u s e f u l purpose would be s e r v e d " .

During his evidence, it became clear that the principal matter of concern to the bankrupt is the possible loss of the house property which he and his wife own in Monto but which is subject to a mortgage to the Queensland Housing Commission. There is in reality little, if any, equity in the property and the attitude of the Queensland Housing Commission, as deposed to by the bankrupt, is that it will not

allow his wife to acquire from the official Trustee his half

interest in the property. He is concerned that he and his

family will be turned out of the house and will in the circumstances be without shelter and accommodation. If an order was made discharging him from his bankruptcy, it would still leave the question of the dealing with the interest in the house property at Monto to be determined between the Official Trustee, his wife and the Queensland Housing Commission; so that problem would not be immediately resolved as the bankrupt thought.

On the material, there really is no other reason and certainly no cogent reason put forward as to why the bankrupt ought to be discharged at such an early point in time. The Official Receiver appears and submits that the case is a marginal one and that he neither supports nor opposes the making of the order. However, a substantial creditor appears and does oppose an early discharge in circumstances where no dividend has been paid.

In the absence of some cogent reason beyond that which has been proffered, I am not satisfied in the exercise of my discretion that a discharge should be granted at this point in time. That does not mean, of course, that an application cannot be made in the future should some reason arise in the personal circumstances of the applicant whereby the court may be convinced that the discharge should at that

time be made. The application is, therefore, dismissed.
preceding pages are a true copy of the I certify that this and the two (2)
reasons for judgment herein of the
Honourable Mr. Justice Cooper.
Date:  7 April, 1992

Associate

Details
AGLC
Re Murphie, R.J [1992] FCA 240
Case
[1992] FCA 240
Decision Date

CaseChat Overview and Summary

In the case of Re Murphie, the debtor, Robert John Murphie, applied for discharge from bankruptcy. The matter was heard in the Federal Court of Australia, General Division, Bankruptcy District of the State of Queensland. The primary issue before the court was whether to grant the debtor an early discharge from bankruptcy, given that no dividend had been paid to creditors and the debtor had no assets or income to satisfy his debts. The major creditor, Colin David Giddings, opposed the discharge as the debtor owed him approximately $28,000, which had not been satisfied in any part.

The court considered the debtor's affidavit and evidence, noting that he had no assets or income likely to result in a dividend for creditors in the future. The debtor argued that his continued bankruptcy would serve no useful purpose. The court recognised the debtor's concern about losing his home due to the lack of equity in the property and the Queensland Housing Commission's refusal to allow his wife to acquire his half-interest in the property. However, the court determined that even if the debtor were discharged, the issue of the house would remain unresolved.

The court exercised its discretion and found that there was no cogent reason to grant an early discharge. The Official Receiver neither supported nor opposed the order, but the major creditor opposed the discharge. Consequently, the court dismissed the debtor's application for discharge. The court left open the possibility of a future application if the debtor's circumstances were to change in a way that warranted reconsideration of the discharge.

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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