Yan v Spyrakis (Trustee), in the matter of the bankrupt estate of Liu [2024] FCA 768

Federal Court of Australia

Yan v Spyrakis (Trustee), in the matter of the bankrupt estate of Liu [2024] FCA 768 File number(s): NSD 1251 of 2023

Judgment of: PERRY J

Date of judgment: 16 July 2024

Catchwords: PRACTICE AND PROCEDURE – application for leave to intervene pursuant to rule 2.03(1) of the Federal Court (Bankruptcy) Rules 2016 (Cth) – change of circumstances from the date the application for leave was filed to the date of the hearing – application dismissed BANKRUPTCY – application by a creditor for orders removing trustee of a bankrupt estate and replacing them with a new trustee pursuant to s 90-15 of the Schedule 2—Insolvency Practice Schedule (Bankruptcy) of the Bankruptcy Act 1966 (Cth) – where there are matters which it would be in the interests of the bankrupt estate for a trustee to investigate – where applicant has offered to fund the investigations by new trustee – where majority of creditors in value support the application – where trustee made decisions not necessarily in the best interests of the estate – application granted

Legislation: Bankruptcy Act 1966 (Cth) Schedule 2—Insolvency Practice Schedule (Bankruptcy) ss 5-15(a), 5-30(a)(ii), 75-‍15(1)(c), 90-15, 90-20 Federal Court (Bankruptcy) Rules 2016 (Cth) rule 2.03(1)

Cases cited: Clyne v Andrew (1984) 1 FCR 169 Foyster v Insolvency & Trustee Service Australia [2005] FMCA 457 Glenfyne International Holding Ltd v Glenfyne Farms International AU Pty Ltd (in Liq) [2019] NSWCA 304; (2019) 101 NSWLR 358 Karellas Investments Pty Ltd v FW Projects Pty Ltd (In Liq) [2021] FCA 870 Mokhtar v Piscopo [2024] FCA 493 Xinfeng Australia International Investment Pty Ltd v GR Capital Group Pty Ltd [2021] NSWSC 614 Yan v Spyrakis as trustee in bankruptcy for Liu [2022] FCA 872 Yan v The Won Capital Pty Ltd [2024] NSWSC 758