Donoghue v Russells (A Firm) [2021] FCA 798

Federal Court of Australia

Donoghue v Russells (A Firm) [2021] FCA 798 Appeal from: Russells (A Firm) v Donoghue [2019] FCCA 1864

File number: QUD 446 of 2019

Judgment of: RANGIAH J

Date of judgment: 16 July 2021

Catchwords: BANKRUPTCY AND INSOLVENCY – appeal against judgment of Federal Circuit Court of Australia – Bankruptcy Act 1966 (Cth) – where primary judge made sequestration order against debtor – whether primary judge erred in finding that debtor "was carrying on business in Australia" under s 43(1)(b)(iii) – whether primary judge erred in finding that debtor "had a place of business in Australia" under s 43(1)(b)(ii) – whether servicing a debt in Australia constitutes "carrying on business in Australia" – whether Jones v Dunkel inference properly drawn where debtor failed to give evidence on source of funds used for loan repayments – whether debtor's address for a company directorship grounds an inference of the debtor having a "place of business in Australia" – appeal dismissed

Legislation: Bankruptcy Act 1966 (Cth) ss 43(1) and 52(1) Corporations Act 2001 (Cth) s 21(2) Evidence Act 1995 (Cth) s 140(2) Privacy Act 1988 (Cth) s 5B(3)(b) Federal Court Rules 2011 (Cth) rr 10.42, 10.43 Local Government Act 1919 (NSW) s 118 Bankruptcy Act 1914 (UK) s 1(2) Rules of the Supreme Court 1883 (UK) Ord IX, r 8

Cases cited: Actiesselskabet Dampskib "Hercules" v Grand Trunk Pacific Railway Company [1912] 1 KB 222 Ahern v Deputy Commissioner of Taxation (Qld) (1987) 76 ALR 137 ASIC v Hellicar (2012) 247 CLR 345 Australian Information Commissioner v Facebook Inc (No 2) [2020] FCA 1307 Badcock v Cumberland Gap Park Company [1893] 1 Ch 362 Blatch v Archer (1774) 1 Cowp 64 Bray v F Hoffman-La Roche Ltd (2002) 118 FCR 1 Briginshaw v Briginshaw (1938) 60 CLR 336 Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia v Australian Competition and Consumer Commission (2007) 162 FCR 466 Fuller v Alford (2017) 252 FCR 168 G v H (1994) 181 CLR 387 Girlock (Sales) Pty Ltd v Hurrell (1982) 149 CLR 155 Haggin v Comptoir D'Escompte de Paris (1889) 23 QBD 519 Hamilton v Warne (1907) 4 CLR 1293 Henderson v State of Queensland (2014) 255 CLR 1 HML v The Queen (2008) 235 CLR 334 Hope v Bathurst City Council (1980) 144 CLR 1 In re Bird v Inland Revenue Commissioners; Ex parte the Debtor [1962] 1 WLR 686 In re Brauch (A Debtor); Ex parte Britannic Securities and Investments Ltd [1978] Ch 316 Jones v Dunkel (1959) 101 CLR 298 Kuhl v Zurich Financial Services Australia Ltd (2011) 243 CLR 361 Napiat Pty Ltd v Salfinger (No 7) (2011) 202 FCR 264 Newby v Von Oppen and The Colt's Patent Firearms Manufacturing Company (1872) LR 7 QB 293 Re Application of Campbell; Gebo Investments (Labuan) Ltd v Signatory Investments Pty Ltd (2005) 54 ACSR 111 Re Mendonca; Ex parte Federal Commissioner of Taxation (1969) 1 ATR 571 Re TCL Airconditioner (Zhongshan) Co Ltd v Castel Electronics Pty Ltd (No 2) (2019) 369 ALR 192 Re Vassis; Ex Parte Leung (1986) 9 FCR 518 Russells (A Firm) v Donoghue [2019] FCCA 1864 Smith (on behalf of National Parks and Wildlife Service) v Capewell (1979) 142 CLR 509 South India Shipping Corporation Ltd v Export-Import Bank of Korea [1985] 1 WLR 585 Theophile v The Solicitor‐General [1950] AC 186 Tiger Yacht Management Ltd v Morris (2019) 268 FCR 548 Trustees of the Property of Cummins (A Bankrupt) v Cummins (2006) 227 CLR 278 Turner v Trevorrow (1994) 49 FCR 566 Valve Corporation v Australian Competition and Consumer Commission (2017) 258 FCR 190