Mulhern, in the matter of Mulhern (Bankrupt) v Pearce (Trustee) [2012] FCA 570

Mulhern, in the matter of Mulhern (Bankrupt) v Pearce (Trustee) [2012] FCA 570

The application is dismissed because, in light of the applicant's non-compliance with his statutory duties, lack of assurance he will return to Australia, significant outstanding questions about his overseas assets, and the potential frustration of the administration of the bankrupt estate, it is not just and equitable to overturn the trustees’ decision to retain his passports and refuse permission to leave Australia.

Parties
Applicant: Michael Richard Mulhern; First Respondent: Mark William Pearce and Andrew John Heers as Trustees of the property of Michael Richard Mulhern also known as Derek O'Malley (a Bankrupt); Second Respondent: Joseph Michael Dodrill
Jurisdiction
Australia
Judgment Date
19 April 2012
Procedural Posture
Bankruptcy Application for Review of Trustee Decision / Interlocutory Application for Interim Relief Pending Determination of Substantive Application
Outcome
Application dismissed
Legal Topics
Trustee Review, Freedom of Movement, Sequestration Order, Annulment of Bankruptcy, Travel Restrictions During Bankruptcy

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Parties

Michael Richard Mulhern

Applicant

Mark William Pearce and Andrew John Heers as Trustees of the property of Michael Richard Mulhern also known as Derek O'Malley (a Bankrupt)

First Respondent

Joseph Michael Dodrill

Second Respondent

Procedural Posture

Bankruptcy Application for Review of Trustee Decision / Interlocutory Application for Interim Relief Pending Determination of Substantive Application

  1. 1 Whether it is just and equitable to overturn the decision of the trustees in bankruptcy to withhold travel documentation (passports) from the bankrupt pending determination of annulment application

Ratio Decidendi

The application is dismissed because, in light of the applicant's non-compliance with his statutory duties, lack of assurance he will return to Australia, significant outstanding questions about his overseas assets, and the potential frustration of the administration of the bankrupt estate, it is not just and equitable to overturn the trustees’ decision to retain his passports and refuse permission to leave Australia.

Court Disposition

Application dismissed

Orders

  • The application is dismissed.
  • The applicant is to pay the costs of the respondent trustee of and incidental to the interlocutory application to be taxed if not agreed.