Official Trustee in Bankruptcy, in the matter of Matson v Deputy Commissioner of Taxation [1999] FCA 914

FEDERAL COURT OF AUSTRALIA

Official Trustee in Bankruptcy, in the matter of Matson v Deputy Commissioner of Taxation [1999] FCA 914 BANKRUPTCY – distribution of bankrupt assets – assets retrieved from third party through litigation initiated by the applicant – litigation supported by indemnities from respondents – third respondent provided verbal and written indemnity, but not in the form proffered by applicant – whether third respondent entitled to distribution of retrieved assets WORDS AND PHRASES – "indemnity for costs of litigation"

Bankruptcy Act 1966 (Cth) s 109(10) Re Butler ex parte Taylor (1995) 57 FCR 499 followed

OFFICIAL TRUSTEE IN BANKRUPTCY, IN THE MATTER OF MATSON v DEPUTY COMMISSIONER OF TAXATION NO. Q 7029 of 1999 HEEREY J 28 JUNE 1999 BRISBANE

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY Q 7029 OF 1999

BETWEEN: IN THE MATTER OF ROGER GREGORY MATSON

A Bankrupt

OFFICIAL TRUSTEE IN BANKRUPTCY

Applicant

AND: DEPUTY COMMISSIONER OF TAXATION

First Respondent

PRESTIGE LITHO PTY LIMITED

Second Respondent

AMERICAN EXPRESS INTERNATIONAL INC.

Third Respondent

JUDGE: HEEREY J

DATE OF ORDER: 28 JUNE 1999

WHERE MADE: BRISBANE

THE COURT ORDERS THAT: 1. Pursuant to s 109(10) of the Bankruptcy Act, the applicant distribute the net amount after costs, remuneration and other expenses recovered from BMM Investments Proprietary Limited the subject of this application as to 5 per cent to the first respondent, as to 90 per cent to the second respondent and as to 5 per cent to the third respondent; 2. The respondents be permitted to share in any further distributions made out of the estate for the balance of their claims, pro rata with other creditors in the estate; 3. The applicant's costs of and incidental to this application be costs in the administration and be paid out of the bankrupt estate. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.