Jones v Robson, as Trustee for the estate of Jones [2023] FCA 497

Federal Court of Australia

Jones v Robson, as Trustee for the estate of Jones [2023] FCA 497 File number(s): VID 76 of 2023

Judgment of: MCELWAINE J

Date of judgment: 22 May 2023

Catchwords: BANKRUPTCY AND INSOLVENCY – Application pursuant to s 109(10) of the Bankruptcy Act 1966 (Cth) seeking the net balance of property held by the trustee in bankruptcy be applied to the admitted debt of the applicant – where applicant provided indemnity for litigation costs of the trustee in bankruptcy to recover divisible assets – where applicant undertook significant risk – where property was recovered – application granted

Legislation: Bankruptcy Act 1966 (Cth) s 109(10)

Cases cited: Green v Official Trustee in Bankruptcy (2003) 128 FCR 383; [2003] FCA164 Low v Barnet (2017) 250 FCR 562; [2017] FCAFC 60 Woodgate, in the Matter of Eaton (a Bankrupt) [2010] FCA 550

Division: General Division

Registry: Victoria

National Practice Area: Commercial and Corporations

Sub-area: General and Personal Insolvency

Number of paragraphs: 12

Date of hearing: 11 May 2023

Counsel for the Applicant: Mr P Thompson of McDonald Slater & Lay

Counsel for the Respondent: The Respondent did not appear

ORDERS VID 76 of 2023

BETWEEN: DAVID CHARLES JONES Applicant

AND: WILLIAM ROLAND ROBSON (WHO IS SUED IN HIS CAPACITY AS TRUSTEE IN BANKRUPTCY FOR JEFFERY WILLIAM JONES ALSO KNOWN AS JEFFREY WILLIAM JONES) Respondent

order made by: MCELWAINE J DATE OF ORDER: 22 May 2023

THE COURT ORDERS THAT:

1. Pursuant to s 109(10) of the Bankruptcy Act 1966 (Cth), the net balance of property held by the respondent trustee for the benefit of the estate of Jeffery William Jones shall be applied in its entirety in part payment of the admitted debt of the applicant David Charles Jones in priority over the admitted debts of each other unsecured creditor in the bankrupt estate. Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.