Levy v Reddy [2009] FCA 63

FEDERAL COURT OF AUSTRALIA

Levy v Reddy [2009] FCA 63

BANKRUPTCY AND INSOLVENCY – Bankruptcy Act 1966 (Cth) section 29 – ex parte interlocutory application by trustee in bankruptcy appointed in United Kingdom – application to restrain bankrupt from disposing of or dealing with his divisible property in Australia – request from Registrar of High Court of Justice of England and Wales – assets only partially owned by bankrupt – appointment of receiver in Australia Held: Interim orders granted on ex parte basis.

Bankruptcy Act 1966 (Cth) s 29 Cross Border Insolvency Act 2008 (Cth) s 436 Federal Court Rules O 25A Insolvency Act 1986 (UK) s 306(1)

Australian Mutual Provident Society v Gregory (1908) 5 CLR 615 applied Ayres v Evans (1981) 56 FLR 235 cited Dick as Trustee in Bankruptcy v McIntosh [2001] FCA 1008 cited Radich v Bank of New Zealand (1993) 45 FCR 101 applied Re Ayres; Ex parte Evans (1981) 51 FLR 395 cited PETER MAURICE LEVY v MARK REDDY (A BANKRUPT)

QUD 25 of 2009

COLLIER J

6 FEBRUARY 2009

BRISBANE

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY QUD 25 of 2009

BETWEEN: PETER MAURICE LEVY

Applicant

AND: MARK REDDY (A BANKRUPT)

Respondent

JUDGE: COLLIER J

DATE OF ORDER: 6 FEBRUARY 2009

WHERE MADE: BRISBANE

THE COURT ORDERS THAT:

1. The hearing in respect of these Interim Orders sought be heard ex parte. 2. The Respondent, Mark Reddy, by himself and, where applicable, his employees, agents or otherwise, be restrained until such time as any further or other order is made by this Court from disposing of or dealing with in any way his divisible property (within the meaning of section 116 of the Bankruptcy Act 1966 (Cth) and ascertained by reference to the commencement of his bankruptcy in the United Kingdom on 25 July 2008), as would be prohibited if the Respondent was bankrupt under the Bankruptcy Act 1966 (Cth), other than for the following purposes: (a) to enable him to pay and to continue to pay reasonable legal expenses of defending or responding to these proceedings; (b) to pay ordinary and proper business expenses bona fide incurred by him; (c) to pay ordinary and proper living expenses bona fide incurred by him; (d) to meet his taxation liabilities; (e) to comply with any statutory requirements to which he is subject; (f) to meet any mortgage or other loan commitment entered into prior to the date of this order. 3. Jason Walter Bettles (of Worrells Solvency and Forensic Accountants, Level 6, 50 Cavill Avenue, Surfers Paradise in the State of Queensland) be appointed Receiver without security of that divisible property pending further or other order of this Honourable Court. 4. In particular, Jason Walter Bettles is appointed Receiver without security of the Respondent's interest in land described as Lot 22 on SP 106487, County of Ward, Parish of Gilston, Title Reference 50262349 (46 Peach Drive, Robina in the State of Queensland) and Lot 21 on SP 406487, County of Ward, Parish of Gilston, Title Reference 50262348 (48 Peach Drive, Robina in the State of Queensland) (the "Respondent's Land") and the Receiver is entitled to lodge caveats with the Registrar of Titles over the titles of the Respondent's Land to protect and note the Receiver's interest in the Respondent's Land. 5. There be served on the Respondent a sealed copy of these Interim Orders along with a copy of the Application and the Supporting Affidavits as soon as possible hereafter. 6. Within 14 days of service of these Interim Orders (along with a copy of the Application and the Supporting Affidavits) and of notification to the Respondent by the Receiver of his appointment, the Respondent is to deliver to the Receiver a Statement of Affairs in respect of the Respondent's divisible property. 7. The Respondent and any third party affected by this Order shall have liberty to apply on notice to the Applicant to discharge or vary this Order, or to seek directions hereunder. 8. The Applicant's costs of and incidental to obtaining this Order be the Applicant's reserved costs. 9. The solicitors for the applicant to make arrangements for the original of the letter, a certified copy of which is marked as Annexure "PML-9" and referred to in the Affidavit of Peter Maurice Levy sworn 12 January 2009, to be delivered to the District Registrar, Queensland Registry, Federal Court of Australia, by 4.00 pm on 5 March 2009. 10. Further hearing in this matter be set down at 9.30 am on 6 March 2009. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules. The text of entered orders can be located using eSearch on the Court's website. IN THE FEDERAL COURT OF AUSTRALIA