THE AUSTRALIAN STEEL COMPANY (OPERATIONS) PTY LTD v MORGAN JAMES CHUBB AS TRUSTEE OF THE BANKRUPT ESTATE OF DAVID JOHN ALLUM AND KYLIE SHERIE ALLUM

In the case of The Australian Steel Company (Operations) Pty Ltd v Morgan James Chubb as Trustee of the Bankrupt Estate of David John Allum and Kylie Sherie Allum, the applicant sought an order for the sale of certain land under the Federal Magistrates Court Rules 2001, Rule 16.01, as well as an order for the appointment of a statutory trustee for the sale of the land under section 66G of the Conveyancing Act 1919 (NSW). The court was required to determine whether it had the jurisdiction and power to make the sought orders and whether the definition of co-owner under the Act included the holder of an equitable charge.

The court found that the Federal Magistrates Court Rules 2001, Rule 16.01, could not confer jurisdiction or power to make an order that the court did not otherwise possess. The court also found that the definition of co-owner under the Act did not include the holder of an equitable charge, citing relevant case law to support its decision. The court further noted that the applicant had not made any further submissions of substance on this point despite being given the opportunity to do so. The court held that the applicant's primary submission that a statutory trustee be appointed under section 66G of the Act was not supported by the law.

The court granted the applicant leave to commence the proceeding pursuant to section 58(3)(b) of the Bankruptcy Act 1966 (Cth) and declared that the respondents had granted an equitable charge to the applicant in respect of their interest in the land. The court also directed the applicant to bring a minute of further directions necessary to give effect to these reasons for judgment by a specified date and adjourned the application for directions to a later date.