Falstein v Official Receiver [1962] HCA 65

Falstein v Official Receiver [1962] HCA 65

The Bankruptcy Court had authority under s. 101 of the Bankruptcy Act to make the orders because the section extends to professional income and earnings, including a barrister's fees, whether or not that income would otherwise vest in the trustee. A barrister earning and receiving fees is "in receipt" of income within s. 101 notwithstanding that, in New South Wales, barrister's fees are not legally recoverable by action.

Jurisdiction
Australia
Procedural Posture
Bankruptcy Appeal / Appeal From Refusal of Application to Rescind Earlier Orders Under S. 101 of the Bankruptcy Act
Outcome
Appeal dismissed with costs.
Legal Topics
["bankrupt's Earnings and Income" 'bankruptcy Act S. 101' 'professional Fees of Barrister' 'income Available for Distribution Among Creditors']
['bankruptcy' 'insolvency'] ["bankrupt's Earnings and Income" 'bankruptcy Act S. 101' 'professional Fees of Barrister' 'income Available for Distribution Among Creditors']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 1 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Bankruptcy Appeal / Appeal From Refusal of Application to Rescind Earlier Orders Under S. 101 of the Bankruptcy Act

Legal Issues

  1. 1 ['Whether s. 101 of the Bankruptcy Act authorised orders requiring the bankrupt to pay part of his earnings or income to the Official Receiver for distribution among creditors.' 'Whether a barrister in New South Wales is "in receipt" of professional income for the purposes of s. 101 where fees are not legally recoverable by action or suit.' 'Whether professional fees or earnings of a barrister fall within "pay, pension, salary, emoluments, profits, wages, earnings, or income" in s. 101.']

Ratio Decidendi

The Bankruptcy Court had authority under s. 101 of the Bankruptcy Act to make the orders because the section extends to professional income and earnings, including a barrister's fees, whether or not that income would otherwise vest in the trustee. A barrister earning and receiving fees is "in receipt" of income within s. 101 notwithstanding that, in New South Wales, barrister's fees are not legally recoverable by action.

Court Disposition

Appeal dismissed with costs.

Orders

  • ['Appeal dismissed with costs.']