The Owners Strata Plan No 86345 v Zeng
[2023] FedCFamC2G 1234
•16 November 2023
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA
(DIVISION 2)
The Owners - Strata Plan No 86345 v Zeng [2023] FedCFamC2G 1234
File number(s): SYG 1468 of 2022 Judgment of: JUDGE STREET Date of judgment: 16 November 2023 Catchwords: BANKRUPTCY – requirements satisfied - sequestration order made Legislation: Acts Interpretation Act1901 (Cth)
Bankruptcy Act 1966 (Cth)
Division: Division 2 General Federal Law Number of paragraphs: 6 Date of hearing: 16 November 2023 Place: Sydney Counsel for the Applicant: Mr B Koch Solicitor for the Applicant: Doyle Edwards Anderson Lawyers Solicitor for the First Respondent: No Appearance Solicitor for the Second Respondent: No Appearance ORDERS
SYG 1468 of 2022 FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 2)
IN THE MATTER OF PENGWEI ZENG AND CHEN WANG A BANKRUPT
BETWEEN: THE OWNERS - STRATA PLAN NO. 86345
Applicant
AND: PENGWEI ZENG
First Respondent
CHEN WANG
Second Respondent
ORDER MADE BY:
JUDGE STREET
DATE OF ORDER:
16 NOVEMBER 2023
THE COURT ORDERS THAT:
1.A sequestration order is made against the estate of Pengwei Zeng, the first respondent.
2.A sequestration order is made against the estate of Chen Wang, the second respondent.
3.The respondents pay the petitioning creditors costs fixed in the amount of $14,000.
4.The petitioning creditors costs fixed in the amount of $14,000 be paid out of the bankrupt estate with the priority in which it is entitled.
THE COURT NOTES THAT:
A.The date of the act of bankruptcy occurred on 1 July 2022.
B.There has been a consent to act as trustee filed by Gavin King.
Note: The form of the order is subject to the entry in the Court’s records.
Note: The Court may vary or set aside a judgment or order to remedy minor typographical or grammatical errors (r 17.05(2)(g) Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2021 (Cth)), or to record a variation to the order pursuant to r 17.05 Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2021 (Cth).
REASONS FOR JUDGMENT
JUDGE STREET
This is an application for a sequestration order against two judgment debtors by their petitioning creditor. The Court has had read an affidavit of service of the bankruptcy notice that was served within s 28A of the Acts Interpretation Act1901 (Cth) upon the judgment debtors. The judgment, on its face, is a final judgment that was entered in the Local Court of New South Wales on 18 May 2022. The final order was attached to the bankruptcy notice served on the judgment debtors.
The Court has had read an affidavit of service of the creditor’s petition pursuant to orders made by this Court on 6 October 2023 which granted to extend the duration of the creditor’s petition and provided orders for substituted service. The affidavit identifies service in accordance with the orders made by the Court. The other requirements in the bankruptcy rules in respect of search and updated affidavits of debt have been complied with. On the face of the evidence before the Court, the Court is satisfied that the respondent debtors committed an act of bankruptcy within s 43(1) of the Bankruptcy Act 1966 (Cth), and at the time that the act of bankruptcy was committed, both judgment debtors were ordinarily resident in Australia and had a dwelling, house or place of business in Australia.
The Court is satisfied that the requirements under s 52(1)(a) of the Bankruptcy Act 1966 (Cth) in respect of the matters asserted in the petition has been complied with in respect of the affidavit verifying the petition that the Court has treated as also being read and the affidavit as to substituted service being effected in respect of the petition and the affidavit in support of the facts in respect of the debt on which the petition is owing. The Court has noted that there is a further indebtedness identified in the bankruptcy notice that is not the subject of the judgment debt. However, the Court is satisfied that it does not give rise to the bankruptcy notice being defective and is satisfied that the amount of the debts remains outstanding by both judgment debtors.
The Court is satisfied of proof of the required matters under s 52(1) of the Bankruptcy Act 1966 (Cth), and on the face of the material before the Court, the petitioning creditor is entitled to a sequestration order against the estate of both judgment debtors. The Court notes that there is no matter that has been advanced on behalf of the judgment debtors to satisfy the requirements of s 52(2) and, accordingly, the Court is satisfied this is an appropriate matter in respect of which a sequestration order should be made against both judgment debtors.
The Court notes that the act of bankruptcy occurred on 1 July 2023 and notes that there has been a consent to act as trustee filed by a Gavin King.
Accordingly, the Court makes the following above orders.
I certify that the preceding six (6) numbered paragraphs are a true copy of the Ex Tempore Reasons for Judgment of Judge Street. Associate:
Dated: 20 February 2024
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