Re Bruce Harry Morrison Ex Parte The Official receiver Trustee of the estate of the bankrupt [1978] FCA 114

IN THE FEDERAL COURT OF AUSTRALIA

GENERAL DIVISION

OF NEW SOUTH WALES AND THE

AUSTRALIAN CAPITAL TERRITORY

) ) BANKRUPTCY DISTRICT OF THE STATE ) No. NSW 392 of 1977 ) )

RE: BRUCE HARRY MORRISON

EX PARTE: THE OFFICIAL RECEIVER Trustee of the estate of the bankrupt.

JUDGE MAKING ORDER: Riley J. DATE OF ORDER: 18 April 1978 WHERE MADE: Sydney ORDER: 1. Application dismissed

The Official Receiver to pay the costs of VACC Insurance Co. Limited. Authorise him to add his own costs to that amount and retain the total out of the estate.

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CATCHWORDS

Bankruptcy ~ Income of bankrupt - Person convicted of larceny

as servant - Recognizance conditioned on payment to Clerk of Peace of compensation for employer - Employer indemnified by insurer - Clerk of Peace authorized by employer to pay insurer - Offender becomes bankrupt - Application by trustee for order that Clerk of Peace pay him money paid by bankrupt to Clerk

of Peace since bankruptcy - Bankruptcy Act 1966, s. 131.

Re - BRUCE HARRY MORRISON, Ex Parte THE OFFICIAL RECEIVER CORAM: Riley J.

18 April 1978

SYDNEY.

By this application the Official Receiver specifically seeks an order under s. 131 of the Bankruptcy Act 1966. That section, so far as is material to this case, provides as follows:-

"(1) Subject to this section, a bankrupt who is in

receipt of income 1s entitled to retazn it for his own benefit.

(2) The Court may, upon the application of the trustee, order that all, or such part as the Court thinks fit, of the income of the bankrupt shall be paid by the bankrupt to the trustee for the benefit of

the bankrupt's creditors". The history of the matter is this. On 17 May 1976 Bruce Harry Morrison pleaded guilty before a Stipendiary Magistrate to a charge of larceny as a servant. On 18 August 1976 a District Court judge sitting at Penrith ordered him for that offence to enter into a recognizance in the sum of $500. There were two conditions to the recognizance. One was that the accused be of good behaviour for a period of three years and appear for sentence at any time during that period if called upon. The other was "that he pay the Clerk of the Peace the sum of $8,887.40 as compensation for Max Wright Motors Pty. Limited, by instalments of $100.00 per month the first of such instalments to be paid on or before 1 September, 1976, and thereafter on or before the lst day of the ensuing months. On or before the lst March, 1977, pay the balance of the compensation. Pay fine of $500.00 within 6 months of this date" (i.e. 18 August 1976). Morrison paid $100.00 to the Clerk of the Peace in (but not always on the first day of) each of the five months from September 1976 to January 1977, both inclusive; but he has never paid the balance ($8,387.40) of the compensation, or the fine of $500.00. The Clerk of the Peace duly paid out the first payment of $100.00 to Max Wright Motors Pty. Limited, but he paid out the