IN THE FEDERAL COURT OF AUSTRALIA GENERAL DIVISION BANKRUPTCY DISTRICT OF THE STATE OF NEW SOUTH WALES ee eS AND THE AUSTRALIAN CAPITAL VERRITORY No. P4 of 1983 BETWEEN THE DEPUTY COMMISSIONER OF TAXATION Applicant AND PLTER LEOPOLD CLYNE Respondent AND THE OFFICIAL TRUSTEE IN BANKRUPTCY AND WILLIAM EDWARD ANDREW No. W838 of 1983 RE: PETER LEOPOLD CLYNE EX PARTE: WILLIAM EDWARD ANDREW CORAM: Beaumont, J. DATED: 18 October, 1983. REASONS FOR JUDGMENT On 4 January, 1983, the Deputy Commissioner of Taxation filed a petition seeking that a sequestration order be made against the estate of Mr. Clyne. A consent by Mr. O'Brien to act as trustee was filed at the same time. On 17 August, 1983, on the application of the Deputy Commissioner, Neaves, J. made an order under s.50 of the Bankruptcy Act, 1966 ("the Act") that the Official Receiver take control of the property of the judgment Gebtor until further order. Various other orders were made, partly as ancillary orders under s.50, and partly under s.30. Although appeals have been brought against these orders, I have been informed that these appeals will probably rot be prosecuted in the events which have happened. On 2 September, 1983, certain further orders were made by Neaves, J. by consent but without admissions. On 6 September, 1983, Mr. Clyne filed a Gebtor's petition pursuant to s.55 which was accepted. The consent of Mr. Andrew to act as trustee was filed at the same time. On 13 September, 1983, Neaves, J. held that the orders made by him on 2 and 13 September, 1983 remazned oper- ative according to their tenour, notwithstanding the statutory bankruvtcy occurring on 6 September, 1983. His Honour also varied one of the orders made by him on 17 August, 1983. On 19 September, 1983, and subsequently, the Deputy Commissioner proceeded with the hearing, before me, of his petition together with his application filed on 15 Sevtember, 1983 seeking inter alia, an order that, in the event that a sequestration order was made, the property of the bankrupt vested in Mr. Andrew be declared to be vested in Mr. O'Brren as trustee of the estate of the bankrupt. In that application, the Deputy Commissioner also sought to restrain the bankruot from obtaining credit and sought an order for delivery up of his credit cards. In the latter connection, on 26 September, 1983, I made certain orders by consent but without admissions. On 7 October, 1983, I made & sequestration order which was antedated as of 6 September, 1983. The bankrupt has appealed against that decision. I also declared that Mr. Andrew was the trustee of the estate of the bankrupt. The Deputy Commissioner has appealed against that decision. Urgency having been cemon- strated, I propose to order expedition of the appeals and to orcer that the preparation of appeal books be dispensed with. I understand that the appeals will be heard on 26 and 27 October, 1983. In the events which have happened, a number of applic- ations are now made: the bankrupt seeks the discharge of the orders made by Neaves, J. and certain other orders; Mr. Andrew seeks directions and other orders; the Official PRecoliver seeks to be discharged from further responsibility in the matter; and the Deputy Commissioner seeks, inter alia, orders controlling the disposition of the property and income of the bankrupt. During the course of argument, common ground emerged in a number of areas on a holding basis and, of course, "without prejudice" footing. In the end, the only matter of real contest between the parties was the question whether, assuming that the power to act under s.50 still remained, the orders made by Neaves, J. should now be discharged. In my opinion, given the control over the affairs of the bankrupt afforded by the operation of the relevant provisions of the Act together with the other interim restraints now con- sented to, without admissions, by the barkrupt, I am of the view that the different restraints imposed by the orders of Neaves, J. are no longer approvriate. I propose to order discharge of those orders but also to make the other orders contained in the schedule to these reasons. re | Certify that this end the 3 preceding Pages are a true ccby cf the aa cr ins reasons for Judgment herein of Tito Honourable Mr Justice Beaumont SP L . Coz ~ Dated IS GUA 2e- | iy s '¥ THE SCHEDULE ORDERS 1. Order that the appeals in these matters be expedited and that the preparation of appeal books be dispensed with. 2. Orders in terms of paras. 1, 2, 3, 4, 5 and 6 of the application to the Court filed herein on behalf of Willian Edward Andrew on 14 October, 1983. 3. Order that the Official Trustee in Bankruptcy pay to William Edward Andrew, as trustee of the estate of the bankrupt, all moneys held by him pursuant to the orders made by Neaves, J. herein, to be held by William Edward Andrew to abide the further order of the Court. 4. Upon the bankrupt undertaking to the Court until further order that he will not use the same for any purpose except for business purposes, direct that William Edward Andrew deliver to the bankrupt the credit cards of the bankrupt now held by him. 5. Orders until further order in terms of alternative orders 1, 2, 3, 4, 5, 6 and 7 as submitted by the Deputy Commissioner save that in order 1 "25%" 1s to be substituted for "30%". 6. Reserve liberty to apply to any partyon such notice as a Judge of the Court shall allow. 7. Reserve costs.