Leonardis, Steven v KGB Design & Construction Pty Ltd [1998] FCA 1354

FEDERAL COURT OF AUSTRALIA

BANKRUPTCY – application for discharge of ex parte orders - appointment of trustee - control of debtor's property – whether sufficient evidence to justify making of orders - whether orders in the interests of creditors – trader's bill of sale – preservation of property. Bankruptcy Act 1996 (Cth) ss 50(1), (2), (3) and (4) Bankruptcy Regulations rr 4.06, 4.07

Re Mader; ex parte Henderson (unreported, Pincus J, 17 July 1986), followed Deputy Commissioner of Taxation v Clyne (1983) 50 ALR 118, followed Re Penning, Ex parte State Bank of S.A. (1989) 89 ALR 417, cited Penning & Steel Tubes Supplies Pty Limited (1988) 80 ALR 689, cited STEVEN LEONDARIS v KGB DESIGN & CONSTRUCTION PTY LTD

NG 8120 OF 1998 TAMBERLIN J SYDNEY 27 OCTOBER 1998

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NG 8120 of 1998

BETWEEN: STEVEN LEONDarIS

DEBTOR

AND: KGB DESIGN & CONSTRUCTION PTY LTD

ACN 009 589 397

CREDITOR

JUDGE: TAMBERLIN J

DATE OF ORDER: 27 october 1998

WHERE MADE: SYDNEY

Upon the continuance of the undertaking as to damages given by the creditor in respect of Jim and Elizabeth Anastasiou, the orders of the Court made on 12 October 1998, with the variations set out below, are to remain in force until 9 November 1998 or such further date as may be fixed for hearing of the creditors' petition.

The Court also orders that: Order 6 be varied to read as follows: "6. The debtor, Steven Leondaris, be restrained, without prior approval of the Court from paying, lending, or depositing any money with, transferring or delivering any property to, any other person, company or entity except in the ordinary course of business." Further orders be made as follows: "11. The trustee, Andrew Hugh Jenner Wily, is authorised to make payment out of the account of such business and reasonable living expenses of the debtor as the trustee shall approve. 12. The trustee's remuneration be at the rate set by the Insolvency Practitioners' Association of Australia. 13. Costs of the s 50 application and the action to set aside the orders made on 12 October 1998 be reserved. 14. Reserve liberty to apply on forty-eight hours notice." Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.