Solomons and de Vries as Joint and Several Trustees of the Bankrupt Estate of Li v Li

The applicants, Solomons and de Vries, acting as joint and several trustees of the bankrupt estate of Li, sought an order from the Federal Court of Australia under section 146 of the *Bankruptcy Act 1966* (Cth). The dispute concerned the distribution of dividends from the bankrupt estate, specifically whether the distribution should proceed as if the bankrupt, Li, had filed a statement of affairs as required by the Act.

The central legal issue before Judge Manousaridis was whether to exercise the discretion conferred by section 146 of the *Bankruptcy Act* to permit the distribution of dividends despite the bankrupt's failure to file a statement of affairs. This required the court to consider the circumstances of the case and determine if such an order was appropriate.

Judge Manousaridis was satisfied that the circumstances warranted the exercise of discretion in favour of the applicants. The court accordingly made orders permitting the distribution of dividends to proceed as if the bankrupt had filed the required statement of affairs. A sealed copy of these orders was to be served on Ms Zhe Li and the Australian Taxation Office.