Coshott v Burke [2013] FCA 155

Coshott v Burke [2013] FCA 155

Because the first respondent's resignation was bona fide, was not opposed, and rendered the removal proceedings of no further utility, the Court accepted the resignation under s 180 of the Bankruptcy Act 1966 (Cth). The Court declined to select a replacement trustee because there was no sufficient basis to choose among the consenting trustees and the matter should be left to the Official Trustee. As no sufficient case of impropriety by the first respondent had been established, his costs were to be treated as properly incurred as trustee and as costs of the bankruptcy administration for the specified period.

Jurisdiction
Australia
Judgment Date
25 February 2013
Procedural Posture
Application Concerning Removal or Resignation of Trustee of a Bankrupt Estate Under the Bankruptcy Act 1966 (cth) / Judgment on Interim Application by the First Respondent for Leave to Resign as Trustee
Outcome
The first respondent's resignation as trustee was accepted, costs were made costs of the bankruptcy administration for a specified period, and the proceedings were otherwise dismissed.
Legal Topics
['resignation of Trustee in Bankruptcy' 'appointment of Replacement Trustee' 'official Trustee in Bankruptcy' 'costs of Bankruptcy Administration' 'dismissal of Proceedings']
['bankruptcy' 'insolvency' 'civil Procedure'] ['resignation of Trustee in Bankruptcy' 'appointment of Replacement Trustee' 'official Trustee in Bankruptcy' 'costs of Bankruptcy Administration' 'dismissal of Proceedings']

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Procedural Posture

Application Concerning Removal or Resignation of Trustee of a Bankrupt Estate Under the Bankruptcy Act 1966 (cth) / Judgment on Interim Application by the First Respondent for Leave to Resign as Trustee

Legal Issues

  1. 1 ["Whether the Court should accept the first respondent's resignation from the office of trustee of the bankrupt estate of Robert Gilbert Coshott." 'Whether the Court should appoint a replacement trustee from among persons who had consented to act.' 'Whether the costs of the application should be treated as costs of the bankruptcy administration.']

Ratio Decidendi

Because the first respondent's resignation was bona fide, was not opposed, and rendered the removal proceedings of no further utility, the Court accepted the resignation under s 180 of the Bankruptcy Act 1966 (Cth). The Court declined to select a replacement trustee because there was no sufficient basis to choose among the consenting trustees and the matter should be left to the Official Trustee. As no sufficient case of impropriety by the first respondent had been established, his costs were to be treated as properly incurred as trustee and as costs of the bankruptcy administration for the specified period.

Court Disposition

The first respondent's resignation as trustee was accepted, costs were made costs of the bankruptcy administration for a specified period, and the proceedings were otherwise dismissed.

Orders

  • ['Upon the first respondent giving an undertaking to provide his files to the Official Trustee in Bankruptcy with respect to the estate of Robert Gilbert Coshott, a bankrupt, and otherwise cooperate with and assist the Official Trustee in Bankruptcy as reasonably required, pursuant to s 180 of the Bankruptcy Act...