' "¢ A$ CATCHWORODS BANKRUPTCY - Review of action of Registrar in Bankruptcy - signing and sealing of sequestration order - application for rescission suspension of sequestration order. or PRACTICE AND PROCEDURE - Practice of Registry when such application is made as directed - resolution of Federal Court Judges. Bankruptcy Act 1966: ss 14(5), 30. Re Kurt and Gerlinde PICCARDI Ex parte George Gregory GRIVAS W 1607 of 1986 Coram: Einfeld J. Sydney 24 July 1987 wer ae sparen : eegrae ' v roe IN THE FEDERAL COURT OF AUSTRALIA ) NEW SOUTH WALES DISTRICT REGISTRY ) ) No. W 1607 of 1986 ) 1. BANKRUPTCY DIVISION ) Re KURT AND GERGLINDE PICCARDI Ex parte GEORGE GREGORY GRIVAS Coram: Binfeld J. Delivered: 24 July 1987 MINUTES OF ORDERS I direct that the applicants file and serve any further affidavits on which they wish to rely in the applications to rescind/suspend and annul the sequestration order on or before 4 pm on Thursday 30 July 1987. - I direct that all creditors seeking to participate in these proceedings file and serve all affidavits on which they intend to rely on or before 4 pm on Thursday 13 August 1987. I direct that the applicants (the bankrupts) file and serve issues for trial on or hefore 4 pm Thursday 27 August 1987. I direct that the applications to rescind/suspend and annul the sequestration order be listed for directions on 9.30 am on Thursday 28 August 1987 on which date subpoenas for the production of documents on behalf of all parties are to be made returnable. The parties are to exchange before that time for discussion with me at that directions hearing lists of the witnesses required for cross examination at the hearing. I direct that each party serve on each other party an outline of the submissions intended to be advanced at the hearing by not later than 4 pm on Thursday 3 September 1987. These submissions are to be supplied to my Associate by not later than 4 pm on Friday 4 September 1987. I fix for hearing the applications to rescind/suspend and to annul the sequestration order during the week commencing Monday, 7 September 1987. I reserve my decision on and stand over to the completion of the aforementioned hearing the application to review the signing and sealing of the sequestration order by the Registrar on 27 January 1987. prescmecee "7 eres 4a ee eerie eer os sie " NOTE: I reserve costs. I grant liberty to all parties to apply on 48 hours' notice to my Associate and to the other parties. Settlement and entry of orders is dealt with in accordance with Order 36 of the Federal Court Rules. t aT Re + a ee oe TO. - 4 wee teen ee oe ae yee at IN THE FEDERAL COURT OF AUSTRALIA ) ) NEW SOUTH WALES DISTRICT REGISTRY } No. W 1607 of 1986 ) ) BANKRUPTCY DIVISION Re KURT AND GERLINDE PICCARDI Ex parte GEORGE GREGORY GRIVAS Coram: Einfeld J. Delivered: 24 July 1987 REASONS FOR JUDGMENT Following upon the judgment orders and directions which I gave on 8 July last, this matter came on for hearing again on Thursday, 23 July 1987. On this occasion the Registrar was represented by a solicitor. I announced to the Court that prior to the hearing the Registrar in question had contacted me not to discuss the facts of the matter but to acquaint me with certain matters relating to the existence of Court procedures of which he correctly suspected I was not aware. These were that in November 1986 when the sequestration order in this Matter was made and in January 1987, when it was signed and sealed, the practice of the Registry was that 1. where an application for rescission or suspension of sequestration orders was filed, the Registry took no action with respect to the signing and sealing of the sequestration order until the Court had decided the matter "ite 7. wea ee eee pee te Saar poe oy a we ae ree mae en ee et Ma 2. in March 1987 this practice was varied by resolution of the Judges of the Federal Court so that where an application for rescission or suspension is filed in Registry, it is now to be treated as an application to a Judge in chambers to give appropriate directions concerning the matter, including any directions about the signing and sealing of the order. The Registry was directed to notify practitioners of this practice and of the need to make an application to a Judge in chambers. The Registry was further directed not to delay the signing and sealing of any sequestration order except for the short time necessary to allow a party to file an application to rescind or suspend and to see a Judge in chambers. At the resumption of the hearing on 23 July, the solicitor representing the Registrar advised me that the reason why the Registrar signed and sealed this order, notwithstanding the Registry's then practice not to do so when there was an outstanding application to rescind, and notwithstanding the file notes and conversations to which [ referred in my earlier judgment, was that he read the proceedings before Mr. Justice Jackson as having been concluded by a refusal by his Honour to order the Registrar not to sign and seal the sequestration order in this case. That seems to me to be a perfectly plausible explanation, and no party suggested that it was incorrect or expressed any desire to cross examine the Registrar on the matter. For the reasons I gave in my remarks on 8 July, I think, though not without some doubt, that that 1s not what Mr. Justice Jackson did or even was asked to do, although I can understand that the transcript could be read in that way. Subject to one aspect to which I will come, that then completes the factual picture which f otherwise outlined on 8 July. wo eee ener ee pwn ree va The question that now arises is what should flow as a result. It was intimated before me on 23 July that whatever I decide to do on this application for review of the Registrar's action in signing and sealing the sequestration order, that decision is likely to be appealed by the unsuccessful party or parties. (It may in fact be an application for leave to appeal rather than the exercise of a right to appeal.) There 1s no reason at all why that course should not be available, but I do Not think that it needs to be available at this time in these proceedings. Ali the parties' rights in this regard will be preserved if I adjourn this matter and reserve my decision upon it until all the evidence has been heard on the substantive application to rescind and on the application to annul the sequestration order. I will then decide the question as to whether the application for review should be granted in the light of the additional evidence that will have emerged by that time. This 1s for the reason that it seems to me that one matter that might go to the exercise of the discretion under section 14(5) of the Bankruptcy Act as it relates to this matter is whether there is any substance to the application under section 37{1) itself. If the evidence should reveal that there is no substance to that application, there might be an additional reason for refusing to review the act of the Registrar which has been impugned in this case. If on the other hand there is real substance to the application, that may be a reason for setting aside or quashing the Registrar's actions. For those reasons I now make the following orders and directions: 1. I direct that the applicants file and serve any further affidavits on which they wish to rely in the applications to rescind/suspend and annul the sequestration order on or before 4 pm on Thursday 30 July 1987. Pp curr cmee gat toe Wwe ' J direct that all creditors seeking to participate in these proceedings file and serve all affidavits on which they intend to rely on or before 4 pm on Thursday 13 August 1987. I direct that the applicants (the bankrupts) file and serve issues for trial on or before 4 pm Thursday 27 August 1987. I direct that the applications to rescind/suspend and annul the sequestration order be listed for directions on 9.30 am on Thursday 28 August 1987 on which date subpoenas for the production of documents on behalf of all parties are to be made returnable. The parties are to exchange before that time for discussion with me at that directions hearing lists of the witnesses required for cross examination at the hearing. I direct that each party serve on each other party an outline of the submissions intended to be advanced at the hearing by not later than 4 pm on Thursday 3 September 1987. These submissions are to be supplied to-my Associate by not later than 4 pm on Friday 4 September 1987. I fix for hearing the applications to rescind/suspend and to annul the sequestration order during the week commencing Monday, 7 September 1987. I reserve my decision on and stand over to the completion of the aforementioned hearing the application to review the signing and sealing of the sequestration order by the Registrar on 27 January 1987. ae ee ae oes Ne coe renee ' 1- sis t ia .i r ve yer ape e——— 9. NOTE: I reserve costs. I grant liberty to all parties to apply on 48 hours' notice to my Associate and to the other parties. Settlement and entry of orders is dealt with in accordance with Order 36 of the Federal Court Rules. sere Pee te