Clyne, Peter Leopold v The Deputy Commission of Taxation [1985] FCA 364

Clyne, Peter Leopold v The Deputy Commission of Taxation [1985] FCA 364

Section 135(1)(j) of the Bankruptcy Act 1966 empowers the trustee, with leave of the court, to make an allowance to the bankrupt for reasonable legal representation expenses at a public examination, including senior counsel, as the term 'allowance' includes such payments and is not limited to maintenance or subsistence.

Parties
Bankrupt: Peter Leopold Clyne; Petitioning Creditor: Deputy Commissioner of Taxation; Trustee: J.W. O'Brien
Jurisdiction
Australia
Judgment Date
01 August 1985
Procedural Posture
Bankruptcy / Application for Allowance for Legal Representation at Public Examination
Outcome
Application granted in part
Legal Topics
Allowance to Bankrupt for Legal Representation, Interpretation of S 135(1)(j) Bankruptcy Act 1966
Bankruptcy Allowance to Bankrupt for Legal Representation Interpretation of S 135(1)(j) Bankruptcy Act 1966

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Parties

Peter Leopold Clyne

Bankrupt

Deputy Commissioner of Taxation

Petitioning Creditor

J.W. O'Brien

Trustee

Procedural Posture

Bankruptcy / Application for Allowance for Legal Representation at Public Examination

Legal Issues

  1. 1 Does s.135(1)(j) of the Bankruptcy Act 1966 empower the trustee, with leave of the court, to make an allowance to a bankrupt for legal representation at a public examination?
  2. 2 Should the discretion to grant leave for such an allowance be exercised in this case, and if so, in what amount?

Ratio Decidendi

Section 135(1)(j) of the Bankruptcy Act 1966 empowers the trustee, with leave of the court, to make an allowance to the bankrupt for reasonable legal representation expenses at a public examination, including senior counsel, as the term 'allowance' includes such payments and is not limited to maintenance or subsistence.

Court Disposition

Application granted in part

Orders

  • Leave granted to the trustee to make an allowance to the bankrupt in the sum of $20,000.00 for legal representation at his public examination.
  • Liberty to the trustee to apply for a further allowance on notice as the judge shall allow.