FEDERAL MAGISTRATES COURT OF AUSTRALIA
| ROOKHARP PTY LTD & ANOR v WEBB & ANOR | [2012] FMCA 607 |
| BANKRUPTCY – Creditor’s petition – no appearance of debtors at hearing – no grounds of opposition – sequestration order made. |
| Bankruptcy Act 1966 (Cth), s.52(1) |
| Rookharp Pty Limited v Webb & Anor [2011] FMCA 801 |
| First Applicant: | ROOKHARP PTY LTD |
| Second Applicant: | DAVID ROOKE |
| First Respondent: | IVAN JOHN WEBB |
| Second Respondent: | ELAINE THERESE WEBB |
| File Number: | SYG 2373 of 2011 |
| Judgment of: | Smith FM |
| Hearing date: | 5 July 2012 |
| Delivered at: | Sydney |
| Delivered on: | 5 July 2012 |
REPRESENTATION
| Counsel for the Applicants: | Mr B Skinner |
| Solicitors for the Applicants: | McLean & Associates |
| Counsel for the Respondents: | No appearance by or on behalf of the respondents |
ORDERS
A sequestration order be made against the estate of Ivan John Webb.
A sequestration order be made against the estate of Elaine Therese Webb.
The applicant creditors’ costs, including all reserved costs, be taxed and paid from the estates of the respondent debtors in accordance with the Bankruptcy Act 1966 (Cth).
Note that the date of the act of bankruptcy in relation to Ivan John Webb is 23 August 2011.
Note that the date of the act of bankruptcy in relation to Elaine Therese Webb is 22 August 2011.
Note that a consent to act as trustee in relation to the estates of both respondents has been signed by Alan Richard Nicholls.
The applicants must give a copy of this order to the Official Receiver within 2 working days.
| FEDERAL MAGISTRATES COURT OF AUSTRALIA AT SYDNEY |
SYG 2373 of 2011
| ROOKHARP PTY LTD |
First Applicant
| DAVID ROOKE |
Second Applicant
And
| IVAN JOHN WEBB |
First Respondent
| ELAINE THERESE WEBB |
Second Respondent
REASONS FOR JUDGMENT
(revised from transcript)
This is a creditor’s petition in which the present petitioners, Rookharp Pty Ltd and David Rooke, were substituted for the original petitioner, which was The Owners of Strata Plan No 51507. The original petition was lodged on 19 October 2011, and the original petitoner was given permission to withdraw by a Registrar on 1 February 2012. The present petitioners were then substituted by order of a Registrar on 15 February 2012. On that occasion, the two respondent debtors, Mr and Mrs Webb, were represented by counsel, and it is unclear to me whether they opposed the substitution. The motion for substitution was supported by an affidavit of debt which essentially foreshadowed the indebtedness now set out in the amended petition.
The substituted petitioners’ amended petition relies on the acts of bankruptcy asserted by the original petitioner, correcting some minor discrepancies. On the evidence which was previously filed and served on the debtors, I am satisfied as to due service of a valid bankruptcy notice on each of the debtors, and their failure to comply. The affidavits of service can be found attached to an affidavit of Ms Ackland sworn and filed on 19 October 2011. I am satisfied that an act of bankruptcy in relation to Mr Webb occurred on 23…
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- Case
- [2012] FMCA 607
- Decision Date
CaseChat Overview and Summary
The primary legal issue for the court was to establish whether the respondents had indeed committed acts of bankruptcy. The court considered the evidence provided by the applicant, including the unpaid debts and the respondents' failure to respond to the claims. The court also had to assess whether the applicant had satisfied the burden of proof required to establish the acts of bankruptcy. Additionally, the court examined the necessity for a sequestration order under the Bankruptcy Act 1966.
The court found that the applicant had successfully demonstrated that the respondents had committed acts of bankruptcy by failing to settle the debts owed. The court was satisfied that the applicant had met the required standard of proof. Given the evidence presented, the court concluded that the imposition of a sequestration order was appropriate to protect the interests of the creditors. The court ordered the sequestration of the estates of both respondents, and the costs of the application were to be paid from the respondents' estates. The court also noted the specific dates of the acts of bankruptcy and acknowledged the consent of Alan Richard Nicholls to act as trustee for the respondents' estates.
Orders
Orders of the court
1.
A sequestration order be made against the estate of Ivan John Webb.
2.
A sequestration order be made against the estate of Elaine Therese Webb.
3.
The applicant creditors’ costs, including all reserved costs, be taxed and paid from the estates of the respondent debtors in accordance with the Bankruptcy Act 1966 (Cth).
4.
Note that the date of the act of bankruptcy in relation to Ivan John Webb is 23 August 2011.
5.
Note that the date of the act of bankruptcy in relation to Elaine Therese Webb is 22 August 2011.
6.
Note that a consent to act as trustee in relation to the estates of both respondents has been signed by Alan Richard Nicholls.
7.
The applicants must give a copy of this order to the Official Receiver within 2 working days.
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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