FEDERAL COURT OF AUSTRALIA New Age Constructions (NSW) Pty Ltd v Etlis, in the matter of Etlis (No 2) [2013] FCA 953 Citation: New Age Constructions (NSW) Pty Ltd v Etlis, in the matter of Etlis (No 2) [2013] FCA 953 Parties: NEW AGE CONSTRUCTIONS (NSW) PTY LTD ACN 058 622 950 v LANA ETLIS (AKA SVETLANA ETLIS), A DEBTOR and JOSEPH LOEBENSTEIN (AS TRUSTEE OF THE PERSONAL INSOLVENCY AGREEMENT OF LANA ETLIS, A DEBTOR) File number: NSD 2221 of 2012 Judge: YATES J Date of judgment: 18 September 2013 Date of hearing: 18 September 2013 Place: Sydney Division: GENERAL DIVISION Category: No catchwords Number of paragraphs: 3 Counsel for the Applicant: Mr S Golledge Solicitor for the Applicant: McGrath Solicitors Counsel for the First Respondent: Mr D McAloon Solicitor for the First Respondent: B2B Lawyers Solicitor for the Second Respondent: Mr I Cull of ICA Lawyers IN THE FEDERAL COURT OF AUSTRALIA NEW SOUTH WALES DISTRICT REGISTRY GENERAL DIVISION NSD 2221 of 2012 IN THE MATTER OF ETLIS BETWEEN: NEW AGE CONSTRUCTIONS (NSW) PTY LTD ACN 058 622 950 Applicant AND: LANA ETLIS (AKA SVETLANA ETLIS), A DEBTOR First Respondent JOSEPH LOEBENSTEIN (AS TRUSTEE OF THE PERSONAL INSOLVENCY AGREEMENT OF LANA ETLIS, A DEBTOR) Second Respondent JUDGE: YATES J DATE OF ORDER: 18 SEPTEMBER 2013 WHERE MADE: SYDNEY THE COURT ORDERS THAT: 1. The personal insolvency agreement executed by Lana Etlis (also known as Svetlana Etlis) on 19 December 2012 (the personal insolvency agreement) be set aside. 2. A sequestration order be made against the estate of Lana Etlis (also known as Svetlana Etlis) (the bankrupt estate). 3. The applicant's costs of this proceeding be taxed and paid from the bankrupt estate in accordance with the provisions of the Bankruptcy Act 1966 (Cth) and the Bankruptcy Regulations 1996 (Cth). 4. In accordance with the agreement between the second respondent and Rambleford Pty Ltd (Rambleford), the second respondent's remuneration and disbursements of and incidental to the personal insolvency agreement and this proceeding be paid by Rambleford from the funds it has paid to the second respondent for the purpose of the personal insolvency agreement (the Rambleford funds). 5. The second respondent remit the balance of the Rambleford funds to Rambleford within seven days. 6. The first respondent be released from further compliance with the undertaking given by her on 22 July 2013. THE COURT NOTES THAT: 7. A consent to act as trustee in respect of the bankrupt estate has been signed by Stirling Lindley Horne and filed with the Official Receiver. 8. New Age Constructions (NSW) Pty Ltd, by its director, John Carollo of 3 Teemar Street, Tennyson Point, New South Wales, undertakes to the Court that it will provide funding to the maximum amount of $30,000 to Stirling Lindley Horne, as trustee of the bankrupt estate, to meet costs, including trustee's remuneration and out-of-pocket expenses incurred by the trustee in the conduct of investigations, including public examination and the conduct of litigation in connection with the administration of the bankrupt estate. Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011. IN THE FEDERAL COURT OF AUSTRALIA NEW SOUTH WALES DISTRICT REGISTRY GENERAL DIVISION NSD 2221 of 2012 IN THE MATTER OF ETLIS BETWEEN: NEW AGE CONSTRUCTIONS (NSW) PTY LTD ACN 058 622 950 Applicant AND: LANA ETLIS (AKA SVETLANA ETLIS), A DEBTOR First Respondent JOSEPH LOEBENSTEIN (AS TRUSTEE OF THE PERSONAL INSOLVENCY AGREEMENT OF LANA ETLIS, A DEBTOR) Second Respondent JUDGE: YATES J DATE: 18 SEPTEMBER 2013 PLACE: SYDNEY REASONS FOR JUDGMENT (REVISED FROM TRANSCRIPT) 1 On 2 September 2013, I published my reasons for making proposed orders to set aside a personal insolvency agreement made by the first respondent. In those reasons, I noted that there remained an outstanding issue concerning the second respondent's fees and disbursements as trustee of that agreement. As noted in my reasons, the second respondent had sought an order for compensation under s 222(9) of the Bankruptcy Act 1966 (Cth) to be paid by Rambleford Pty Ltd (Rambleford) out of funds that had been advanced by it for distribution under the agreement. 2 Agreement has now been reached between the second respondent and Rambleford that the second respondent's fees and disbursements be fixed in the sum of $54,000 including goods and services tax and paid from the funds advanced by Rambleford with the balance of the advanced funds being remitted to it within seven days. A copy of a signed minute to that effect has been provided to the Court, which I will mark as Exhibit 1. 3 Otherwise, orders, as discussed this morning, will be made giving effect to the published reasons. I certify that the preceding three (3) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Yates. Associate: Dated: 19 September 2013