Romeo v Wesley College

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FEDERAL COURT OF AUSTRALIA

Romeo v Wesley College [2016] FCA 240

Appeal from: Romeo v Wesley College [2015] FCCA 3098
File number: WAD 718 of 2015
Judge: BARKER J
Date of judgment: 11 March 2016
Catchwords: BANKRUPTCY AND INSOLVENCY – application to set aside bankruptcy notice under s 40(1)(g) of the Bankruptcy Act 1966 (Cth) dismissed by Federal Circuit Court – appeal from Federal Circuit Court – whether counter-claim equal to or exceeding amount of judgment debt – whether counter-claim could have been set up in proceeding in which judgment obtained – whether requirement to respond to questions or failure to adjourn procedurally fair – appeal dismissed
Legislation:

Bankruptcy Act 1966 (Cth) s 40(1)(g)

Federal Circuit Court (Bankruptcy) Rules 2006 (Cth) R 3.02, R 3.02(2)(a), R 3.02(2)(b), R 3.02(2)(c)

Cases cited:

Nath v Clipway Pty Ltd [1999] FCA 625

Re Glew; Glew v Harrowell of Hunt & Hunt Lawyers (2003) 198 ALR 331; [2003] FCA 373

Romeo v Wesley College [2014] WADC 152

Romeo v Wesley College [2015] FCCA 3098

Date of hearing: 23 February 2016
Registry: Western Australia
Division: General Division
National Practice Area: Commercial and Corporations
Sub-area: General and Personal Insolvency
Category: Catchwords
Number of paragraphs: 73
Counsel for the Appellant: The Appellant appeared in person
Counsel for the Respondent: Ms C Rab
Solicitor for the Respondent: Mossensons

ORDERS

WAD 718 of 2015
BETWEEN:

JIM VINCENT ROMEO

Appellant

AND:

WESLEY COLLEGE

Respondent

JUDGE:

BARKER J

DATE OF ORDER:

11 MARCH 2016

THE COURT ORDERS THAT:

1.The appeal be dismissed.

2.The appellant to pay the costs of the respondent to be taxed, if not agreed.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT

BARKER J:

  1. On 17 November 2015, a judge of the Federal Circuit Court of Australia conducted a de novo hearing of the application, made by the appellant, Mr Jim Vincent Romeo, for review of orders made by a Registrar refusing to set aside a bankruptcy notice served on him on 30 July 2015, at the instance of Wesley College.  The judge dismissed the application with costs.  See Romeo v Wesley College [2015] FCCA 3098. This proceeding is Mr Romeo’s appeal from that judgment and the orders made.

  2. The relevant question both before the Registrar and before the judge in the Court below was whether Mr Romeo had committed an act of bankruptcy in terms of s 40(1)(g) of the Bankruptcy Act 1966 (Cth). That provision relevantly provides that:

    if a creditor who has obtained against the debtor a final judgment … being a judgment … the execution of which has not been stayed … and the debtor does not:

    (i)where the notice was served in Australia – within the time specified in the notice;

    …

    comply with the requirements of the notice or satisfy the Court that he or she has a counter‑claim, set-off or cross demand equal to or exceeding the amount of the judgment debt …, being a…

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Details
Case
[2016] FCA 240
Decision Date

CaseChat Overview and Summary

The matter before the court was an appeal brought by Romeo against a decision of the Federal Circuit Court dismissing an application to set aside a bankruptcy notice under section 40(1)(g) of the Bankruptcy Act 1966 (Cth). The appeal concerned the interpretation of the relevant statutory provisions and the procedural fairness of the Federal Circuit Court's decision.

The central legal issue was whether the counter-claim made by Romeo was equal to or exceeded the amount of the judgment debt. Additionally, the court had to determine if the counter-claim could have been set up in the proceeding in which the judgment was obtained, and whether the requirement for Romeo to respond to questions or the failure to adjourn were procedurally fair.

In dismissing the appeal, the court found that the fourth ground of appeal was effectively a restatement of the first. The court held that the counter-claim did not meet the statutory threshold and could not have been set up in the original proceeding. Furthermore, the court found the procedural steps taken by the Federal Circuit Court to be fair. Consequently, the appeal was dismissed.

The court ordered that the appeal be dismissed and that Romeo pay the respondent's costs, to be taxed if not agreed. The entry of orders was governed by Rule 39.32 of the Federal Court Rules 2011.

Orders

Orders of the court

1. The appeal be dismissed.

2. The appellant to pay the costs of the respondent to be taxed, if not agreed.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

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Decision

Reasons for decision

The Court considers that this fourth ground of appeal is, in effect, a restating of ground 1 and, for the reasons given above in relation to ground 1, must fail.CONCLUSION AND ORDERS For the reasons given above, the appeal should be dismissed with costs.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.