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JUDGMENT No. su? 24,
CATCHWORDS
Bankruptcy - review of trustee's decision to obyect to discharge of bankrupt - lack of co-
operation by the bankrupt.
RECEIVED ¥
350 NOV 1994
FEDERAL COURT OF
AUSTRALIA
PRINCIPAL
REGISTRY
No. QB1030 of 1989
Kiefel J:Brisbane. 21 November 1994
JUDGE MAKING ORDER: Kiefel J
DATE OF ORDER: 21 November 1994
WHERE MADE: Brisbane
MINUTES OF ORDER
THE COURT ORDERS THAT:
1, The application be dismissed.
2. The applicant bankrupt pay the respondent trustee's costs of and incidental
to the whole of the application, including the hearings with respect to each
of the orders sought in paragraphs 1 and 2 of the application.
NOTE: Settlement and entry of orders is dealt with in Rule 124 of the Bankruptcy
Rules.
IN THE FEDERAL COURT OF AUSTRALIA No. 0B1030 of 1989
BANKRUPTCY DISTRICT OF THE
STATE OF QUEENSLAND
GENERAL DIVISION
RE: JORGEN SKOV
Applicant
EX PARTE: THE ABOVENAMED
CORAM: Kiefel J
DATE: 21 November 1994
PLACE: Brisbane
REASONS FOR JUDGMENT
The bankrupt in this matter seeks a review of the Trustee's decision to
lodge an objection to the bankrupt's discharge. That objection was dated 10 October
1991. The question seems to be whether the Trustee's decision is, on acceptable material,
shown to be unreasonable. The bases for the Trustee's decision (putting aside one issue
relating to information provided as to the bankrupt's wife's business which, I think, the
Trustee has conceded can be taken no further), are generally to be found in the Jack of
co-operation by the bankrupt and in his rendering a level of assistance being substantially
less than is required by the Act.
The maternal shows that there was delay from the outset in the provision of
his statement of affairs and which resulted in a delay overall of some three months in the
admunistration of the estate.**This explained in part by the personal circumstances of
the bankrupt and what is said to be a lack of knowledge, although an inference which I
thought was open from the Trustee's affidavit was that there was a distinct level of
disinterest in performing the bankrupt's obligations. The bankrupt's creditors were then
not fully disclosed by him and this is said to be explained by the bankrupt's belief that
some creditors were not those of him personally, but those of his company, and that he
had overlooked some personal guarantees. The result, however, was that creditors of
some magnitude (nearly $30,000.00) were not taken into account, almost one half of the
total amount of creditors, and the Trustee was required to contact all known creditors to
obtain a true position. Then the bankrupt appears to have understated his income by
approximately one half, although he explains that this was only an approximation of his
income since he had not then lodged his return. It does, however, require this court to
accept that he had no real idea of his income, such that his estimate was in error by
approximately 100 per cent.
Even if I were to accept that some of these matters are capable of the
explanation advanced by the bankrupt, what I consider that it shows overall is that the
bankrupt has not taken his obligations very seriously, and his approach has been one of
disinterest and not one of performing his obligations when requested by the Trustee. It
does not, I consider, amount to the level of co-operation required.
In these circumstances, I consider that the Trustee's decision 1n filing the
notice of objection has not, in the circumstances, been shown to be unreasonable, and is
one which could be said to be properly based.
Counsel for the Trustee also pointed to the fact of delay in bringing
application with respect to the objection to discharge, but even if this were a matter
properly to be taken into account, I do not think it is necessary to advert to it, save to
comment that it is indicative generally of the approach of the bankrupt to which I have
already referred.
In these circumstances, I dismiss the application.
As to costs, the order will be that the applicant bankrupt pay the
respondent''s trustees costs of and incidental to the whole of the application, including the
hearings with respect to each of tne orders sought in paragraphs 1 and 2 of the
application.
I certify that this and the preceding two pages are a true copy
of the reasons for judgment herein of the Honourable Justice
Kiefel.
Date: 22 November 1994
MU Alt
Associate
Solicitors for the applicant: Hewlett & Co
Counset for the respondents: Mr S Elefthenou
Solicitors for the respondents: M.J. Murray & Assoc.
Date of Hearing: 21 November 1994
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