Re Sharpe, John Lawrence Ex Parte Powell, Kerrie Patricia v Donnelly, Max Christopher

Kerrie Patricia Powell filed an application in the Federal Court of Australia against John Lawrence Sharpe, her estranged husband, seeking, inter alia, an order annulling the bankruptcy of her husband and transferring the bankruptcy proceeding to the Family Court of Australia. The application was filed after the Family Court had ordered Sharpe to pay Powell a substantial sum by way of property settlement. Sharpe filed his own petition in bankruptcy, accompanied by his statement of affairs showing Powell as his largest debt. The Trustee in bankruptcy opposed the application as did some of the other creditors. The central issue for the court was whether the bankruptcy proceeding should be transferred to the Family Court of Australia or retained in the Federal Court. The court considered a number of factors, including the efficiency and economy of judicial administration, and concluded that the proceeding should be transferred to the Family Court of Australia. The court also noted that the advantages of transfer did not depend upon Moss J hearing the application in the bankruptcy proceeding. The court ordered that proceeding No NB 2700 of 1996 be transferred to the Family Court of Australia and that the parties' costs of the application to date be their respective costs of proceeding No NB 2700 of 1996.