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
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:
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.
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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- Case
- [2016] FCA 240
- Decision Date
CaseChat Overview and Summary
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
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
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