Cross v Rullo [2013] FCA 837

Cross v Rullo [2013] FCA 837

The Personal Insolvency Agreement was set aside because the Trustee had proper and justifiable cause for suspicion about the legitimacy of Athena's judgment debt after unsatisfactory and inadequate responses from Athena's solicitor, further suspicions had been raised about other debts and the circumstances of the debt arrangement, Mr Rullo did not oppose the orders, and no creditor appeared to oppose them. In those circumstances, the Court exercised power under s 222(1)(e) of the Bankruptcy Act 1966 (Cth) and made a sequestration order.

Jurisdiction
Australia
Judgment Date
16 August 2013
Procedural Posture
Bankruptcy Application Under S 222 of the Bankruptcy Act 1966 (cth) to Set Aside a Personal Insolvency Agreement and for a Sequestration Order / Final Hearing and Orders
Outcome
Application granted; Personal Insolvency Agreement set aside; sequestration order made; applicant's costs to be taxed and paid from the debtor's estate in accordance with the Bankruptcy Act 1966.
Legal Topics
['personal Insolvency Agreement' 'sequestration Order' 'judgment Debt' 'proof of Debt' 'creditor Voting' 'costs in Bankruptcy']
['bankruptcy and Insolvency'] ['personal Insolvency Agreement' 'sequestration Order' 'judgment Debt' 'proof of Debt' 'creditor Voting' 'costs in Bankruptcy']

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Procedural Posture

Bankruptcy Application Under S 222 of the Bankruptcy Act 1966 (cth) to Set Aside a Personal Insolvency Agreement and for a Sequestration Order / Final Hearing and Orders

Legal Issues

  1. 1 ['Whether the Personal Insolvency Agreement entered into by Mr Rullo should be set aside under s 222 of the Bankruptcy Act 1966 (Cth).' "Whether the Court should make a sequestration order against Mr Rullo's estate." "Whether serious questions about the legitimacy of Athena's judgment debt and other listed debts justified setting aside the debt arrangement." "Whether the applicant's costs should be paid from the fund held by the Trustee or treated as costs in the bankruptcy."]

Ratio Decidendi

The Personal Insolvency Agreement was set aside because the Trustee had proper and justifiable cause for suspicion about the legitimacy of Athena's judgment debt after unsatisfactory and inadequate responses from Athena's solicitor, further suspicions had been raised about other debts and the circumstances of the debt arrangement, Mr Rullo did not oppose the orders, and no creditor appeared to oppose them. In those circumstances, the Court exercised power under s 222(1)(e) of the Bankruptcy Act 1966 (Cth) and made a sequestration order.

Court Disposition

Application granted; Personal Insolvency Agreement set aside; sequestration order made; applicant's costs to be taxed and paid from the debtor's estate in accordance with the Bankruptcy Act 1966.

Orders

  • ['The Personal Insolvency Agreement of Giuseppe Anthony Rullo (also known as Joseph Anthony Rullo) dated 14 February 2013 is set aside.' 'A sequestration order is made against the estate of Giuseppe Anthony Rullo (also known as Joseph Anthony Rullo).' "The applicant's costs, including reserved costs, be taxed and...