Tsakirakis v Official Receiver in Bankruptcy

Theodore Tsakirakis, the applicant, sought a review of a decision by the Official Receiver to issue a notice under section 139ZQ of the *Bankruptcy Act 1966* (Cth). The applicant contended that the issuance of this notice constituted an abuse of process. The Official Receiver was the first respondent, and Samuel Piscopo, as Trustee of the bankrupt estate of Joanna Tsakirakis, was the second respondent. The proceedings were heard in the Federal Circuit Court of Australia.

The central legal issue before the Court was whether the Official Receiver's decision to issue the section 139ZQ notice was an abuse of process. The applicant sought a declaration to this effect and an order setting aside the notice. The Court was also required to determine the appropriate orders for costs, given that judgment had previously been delivered in favour of the applicant, but costs were reserved.

The Court reasoned that while the applicant had sought a declaration that the notice was an abuse of process, and this had been a significant point of contention, the ultimate order made was to set aside the section 139ZQ notice. The Court considered the submissions of both the applicant and the Official Receiver regarding costs. The applicant argued for costs on the basis of being wholly successful, while the Official Receiver contended for each party to bear its own costs, or alternatively, for costs to be borne by the Trustee, or allocated between the Official Receiver and the Trustee. The Court ultimately ordered that the Official Receiver and the Trustee each pay 50% of the applicant's costs, to be agreed or taxed.