Allen, in the matter of Allen [2020] FCA 376

Allen, in the matter of Allen [2020] FCA 376

The Court accepted the resignations and related trustee arrangements because the proposed changes ensured that each bankrupt estate would continue to have an appropriate trustee or trustees, AFSA did not object, petitioning creditors were notified and raised no objection, full service on all bankrupts and creditors would be unnecessary, costly and time-consuming, and it was appropriate for the applicants rather than the bankrupt estates to bear the associated costs.

Jurisdiction
Australia
Judgment Date
13 March 2020
Procedural Posture
Bankruptcy and Insolvency Application Under Ss 180 and 183 of the Bankruptcy Act 1966 (cth) and Section 90 15 of Schedule 2 to the Bankruptcy Act / Application Heard on 5 March 2020; Orders Made on 13 March 2020; Reasons Published on 19 March 2020
Outcome
Application granted; amended originating application permitted; service requirements dispensed with; resignations and trustee arrangements approved; applicants ordered to bear specified costs.
Legal Topics
['removal or Resignation of Registered Trustee' 'appointment or Continuation of Trustees in Bankrupt Estates' 'dispensation With Service Requirements' 'notification of Petitioning Creditors' 'costs of Trustee Resignation and Appointment']
['bankruptcy and Insolvency'] ['removal or Resignation of Registered Trustee' 'appointment or Continuation of Trustees in Bankrupt Estates' 'dispensation With Service Requirements' 'notification of Petitioning Creditors' 'costs of Trustee Resignation and Appointment']

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Procedural Posture

Bankruptcy and Insolvency Application Under Ss 180 and 183 of the Bankruptcy Act 1966 (cth) and Section 90 15 of Schedule 2 to the Bankruptcy Act / Application Heard on 5 March 2020; Orders Made on 13 March 2020; Reasons Published on 19 March 2020

Legal Issues

  1. 1 ["Whether the Court should accept the applicants' resignations as trustees of the relevant bankrupt estates and, in one estate, approve replacement by another applicant." 'Whether compliance with the service requirements in r 8.02(4)(b) and (c) of the Federal Court (Bankruptcy) Rules 2016 (Cth) should be dispensed with.' 'Whether petitioning creditors should be notified and whether any objection affected the orders sought.' 'Who should bear the costs associated with the application, trustee familiarisation, information provision and notification of petitioning creditors.']

Ratio Decidendi

The Court accepted the resignations and related trustee arrangements because the proposed changes ensured that each bankrupt estate would continue to have an appropriate trustee or trustees, AFSA did not object, petitioning creditors were notified and raised no objection, full service on all bankrupts and creditors would be unnecessary, costly and time-consuming, and it was appropriate for the applicants rather than the bankrupt estates to bear the associated costs.

Court Disposition

Application granted; amended originating application permitted; service requirements dispensed with; resignations and trustee arrangements approved; applicants ordered to bear specified costs.

Orders

  • ['The Applicants have leave to file the amended originating application in the form of Annexure A to the orders.' 'In relation to each of the bankrupt estates listed in Schedules 1 to 3 in Annexure A, compliance with the requirements of Rules 8.02(4)(b) and (c) of the Federal Court (Bankruptcy) Rules 2016 (Cth) be...