Andrew O’Brien appeared for the interested person, instructed by RBG Lawyers.
The primary issues considered were whether to grant an application by the trustee for orders to permit the declaration of dividends to creditors for the administration of the bankrupt estate notwithstanding a failure of the bankrupt to file a statement of affairs, pursuant to s 146 of the Bankruptcy Act 1966 (Cth) (BA) and whether to grant an application for orders sought by the bankrupt to set aside prior bankruptcy related orders, and the removal of trustee’s solicitors due to alleged conflict of interest.
The Court held that there was no evidence of fraud, misconduct or conflict of interest, nor grounds to annul bankruptcy and even if enforcement was stayed, debts were still payable.
The Court ultimately dismissed the bankrupt’s application and ordered them to pay the Queensland Law Society costs, to be paid from the bankrupt estate pursuant to s 109 of the BA. In dismissing the bankrupt’s application, there was no occasion to stay the trustee’s application which had otherwise satisfied the requirements pursuant to s 146 of the BA and was subsequently granted.
The judgment can be read by clicking here
