Wilson v Official Trustee in Bankruptcy

The case of Wilson v Official Trustee in Bankruptcy was heard before the Federal Court of Australia. The dispute involved allegations against the Official Trustee in Bankruptcy concerning the handling of a proof of debt and an affidavit of debt, which contained false or misleading statements. The bankrupts sought to hold the trustee accountable for not initiating criminal prosecution over these statements, and also for not informing them of an inquiry by a creditor about the possibility of withdrawing a proof of debt. Another issue was the trustee's role in proceedings by a bankrupt or creditor under section 99 of the Bankruptcy Act 1966, and the determination of the trustee’s remuneration.

The court addressed whether the trustee had a duty to refer the conduct for criminal prosecution or to inform the bankrupts of the inquiry by the creditor. It also considered the appropriate method for determining the trustee's remuneration, specifically whether fees should be calculated based on the scale in force at the time the work was done or at the time of completion of the administration. The court concluded that the trustee was not under any duty to initiate prosecution or to inform the bankrupts about the creditor's inquiry, and that the remuneration should be determined based on the scale in force at the time the work was completed.

The court’s final orders included referring certain fees to a Registrar for inquiry, setting deadlines for the filing of affidavits and outlines of submissions by both parties, and scheduling a directions hearing. Additionally, it ordered that the applicants pay a portion of the respondent’s costs.