Lillas & Loel Lawyers Pty Ltd v Smits [2016] FCA 11

FEDERAL COURT OF AUSTRALIA

Lillas & Loel Lawyers Pty Ltd v Smits [2016] FCA 11 File number: QUD 962 of 2015

Judge: LOGAN J

Date of judgment: 20 January 2016

Catchwords: BANKRUPTCY AND INSOLVENCY – creditor's petition – act of bankruptcy constituted by failure to comply with bankruptcy notice based on order for costs against respondent debtor made in Supreme Court of Queensland – where controlling trustee appointed – where resolution passed at meeting of creditors in favour of debtor executing personal insolvency agreement (PIA) – where applicant creditor and Deputy Commissioner of Taxation as supporting creditor opposed to PIA – whether PIA would be for the advantage of creditors – where debtor sought adjournment of petition Held: PIA provided for miniscule return to creditors – adjournment of petition would only visit further costs on applicant and supporting creditor – sequestration order made

Legislation: Bankruptcy Act 1966 (Cth) Taxation Administration Act 1953 (Cth)

Cases cited: Smits v Lillas & Loel Lawyers Pty Ltd [2015] FCCA 1092 cited

Date of hearing: 20 January 2016

Registry: Queensland

Division General Division

National Practice Area: Commercial and Corporations

Sub-area: General and Personal Insolvency

Category: Catchwords

Number of paragraphs: 32

Solicitor for the Applicant: Lillas & Loel Lawyers Pty Ltd

Counsel for the Respondent: Mr D Edwards (directly instructed)

Supporting Creditor: Ms K Cameron (appearing pursuant to statutory right of audience under the Taxation Administration Act 1953 (Cth))