Quin (Trustee), in the matter of Rowe (Bankrupt) [2016] FCA 823

Quin (Trustee), in the matter of Rowe (Bankrupt) [2016] FCA 823

The directions sought were refused because it was not clear that s 134(4) empowered the Court to authorise trustees to act notwithstanding a conflict of interest, and in any event it would not be appropriate to give directions requiring trustees to act in relation to the proposed claim and its resolution in circumstances of conflict. The practical course was for the trustees to undertake to take necessary steps under s 181A to arrange appointment of a new trustee or trustees to the bankrupt estates of Adrian Stuart Rowe and Amanda Jane Rowe, and the application was dismissed on that basis.

Jurisdiction
Australia
Judgment Date
18 July 2016
Procedural Posture
Application by Trustees in Bankruptcy for Directions Pursuant to S 134(4) of the Bankruptcy Act 1966 (cth) / Hearing of Application for Directions; Application Dismissed After Undertaking
Outcome
Application dismissed on the basis of the applicants' undertaking to take all necessary steps under s 181A of the Bankruptcy Act 1966 (Cth) to arrange for the appointment of a new trustee or trustees to each of the bankrupt estate of Adrian Stuart Rowe and the bankrupt estate of Amanda Jane Rowe.
Legal Topics
['trustee in Bankruptcy Directions' 'conflict of Interest' 'voidable Transfers' 'appointment of New Trustee']
['bankruptcy' 'insolvency'] ['trustee in Bankruptcy Directions' 'conflict of Interest' 'voidable Transfers' 'appointment of New Trustee']

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Procedural Posture

Application by Trustees in Bankruptcy for Directions Pursuant to S 134(4) of the Bankruptcy Act 1966 (cth) / Hearing of Application for Directions; Application Dismissed After Undertaking

Legal Issues

  1. 1 ['Whether the trustees in bankruptcy of several estates could be directed under s 134(4) of the Bankruptcy Act 1966 (Cth) to continue acting notwithstanding a potential conflict of interest.' 'Whether the trustees could be directed to settle a proposed s 120 claim by one bankrupt estate against other bankrupt estates on proposed terms.' 'Whether the conflict should instead be addressed by appointment of a new trustee or trustees to the estates of Adrian Stuart Rowe and Amanda Jane Rowe.']

Ratio Decidendi

The directions sought were refused because it was not clear that s 134(4) empowered the Court to authorise trustees to act notwithstanding a conflict of interest, and in any event it would not be appropriate to give directions requiring trustees to act in relation to the proposed claim and its resolution in circumstances of conflict. The practical course was for the trustees to undertake to take necessary steps under s 181A to arrange appointment of a new trustee or trustees to the bankrupt estates of Adrian Stuart Rowe and Amanda Jane Rowe, and the application was dismissed on that basis.

Court Disposition

Application dismissed on the basis of the applicants' undertaking to take all necessary steps under s 181A of the Bankruptcy Act 1966 (Cth) to arrange for the appointment of a new trustee or trustees to each of the bankrupt estate of Adrian Stuart Rowe and the bankrupt estate of Amanda Jane Rowe.

Orders

  • ['The application be dismissed.' 'The applicants file short written submissions in relation to costs by 5.00 pm on 20 July 2016.' 'The second and third respondents file short written submissions in relation to costs by 5.00 pm on 21 July 2016.']