CONSIDERATION
21 The parties accepted that the judgment that Ms Sopikiotis sought to appeal in this Court was an interlocutory judgment that required leave to appeal: see Federal Court Act, s 24(1A). In respect of a grant of leave to appeal from an interlocutory judgment, the two-part test is well-established. Leave should be granted if: (1) in all the circumstances the decision is attended with sufficient doubt to warrant being reconsidered by an appellate court; and (2) substantial injustice would result if leave were refused supposing the decision to be wrong: Décor Corporation Pty Ltd v Dart Industries Inc (1991) 33 FCR 397 at 398-399.
22 For the reasons I am about to state, I do not consider that the Federal Magistrate's decision was attended by sufficient doubt to warrant it being reconsidered by an appellate court.
23 Leaving aside the inadequacy of her proffered explanation, to which I refer below, it was clearly open to the Federal Magistrate to conclude that there were insufficient prospects of success to justify an extension of time.
24 Ms Sopikiotis' best point raised the question of whether or not the bankruptcy notice had been served within the requisite time. Pursuant to regulation 16.01(1)(c) of the Bankruptcy Regulations, the bankruptcy notice was served on Ms Sopikiotis by being left at her last-known address on 18 February 2011. Ms Sopikiotis argued that, since the notice had issued on 18 August 2010, the notice was not served within the time allowed by regulation 4.02A of the Bankruptcy Regulations. Regulation 4.02A provides:
A bankruptcy notice must be served within:
(a) the period of 6 months commencing on the date of issue of the bankruptcy notice; or
(b) any further period that the Official Receiver allows (whether within or outside that period of 6 months).
Ms Sopikiotis contended that the bankruptcy notice was not served on her with a 6-month period commencing on the date of issue of the notice, as regulation 4.02A required; and that the Federal Magistrate was wrong to reach the contrary conclusion. (Paragraph (b) is not presently relevant because no extension of time has ever been sought from the Official Receiver.)
25 The principles of statutory interpretation relating to Acts of Parliament are ordinarily applicable to delegated legislation, such as regulations: see, for example, Collector of Customs v Agfa-Gevaert Ltd (1996) 141 ALR 59 at 65; Legislative Instruments Act 2003 (Cth), s 13; Acts Interpretation Act 1901 (Cth) ("Acts Interpretation Act"), s 46. Section 13(1) of the Legislative Instruments Act 2003 (Cth) provides that:
(1) If enabling legislation confers on a rule-maker the power to make a legislative instrument, then, unless the contrary intention appears:
(a) the Acts Interpretation Act 1901 applies to any legislative instrument so made as if it were an Act and as if each provision of the legislative instrument were a section of an Act; and
(b) expressions used in any legislative instrument so made have the same meaning as in the enabling legislation; and
(c) any legislative instrument so made is to be read and construed subject to the enabling legislation, and so as not to exceed the power of the rule-maker.
26 When the bankruptcy notice was issued and served, s 36 of the Acts Interpretation Act read as follows:
(1) Where in an Act any period of time, dating from a given day, act, or event, is prescribed or allowed for any purpose, the time shall, unless the contrary intention appears, be reckoned exclusive of such day or of the day of such act or event.
(2) Where the last day of any period prescribed or allowed by an Act for the doing of anything falls on a Saturday, on a Sunday or on a day which is a public holiday or a bank holiday in the place in which the thing is to be or may be done, the thing may be done on the first day following which is not a Saturday, a Sunday or a public holiday or bank holiday in that place.
27 Section 2G of the Acts Interpretation Act, as it then stood, provided that:
(1) In any Act, month means a period:
(a) starting at the start of any day of one of the calendar months; and
(b) ending:
(i) immediately before the start of the corresponding day of the next calendar month; or
(ii) if there is no such day - at the end of the next calendar month.
28 Pursuant to s 36(1) and s 2G, as set out above, the 6-month period referred to in Regulation 4.02A(a) of the Bankruptcy Regulations is calculated exclusive of 18 August 2010 - being the date of issue of the notice - with the result that the service of the notice on 18 February 2011 is the last day within the time allowed.
29 This conclusion is fortified by the use of the expression "within". In Morton v Hampson [1962] VR 364 at 365, a Full Court of the Supreme Court of Victoria said that:
The modern rule in relation to a period of time fixed by statute 'within' which an act is to be done after a specified event is that the day of the event is to be excluded; the next day is that first day of the stipulated period and the time expires on the last day of the period, counting from and of course including the first day ...
Much the same approach was adopted in Susiatin v Minister for Immigration and Multicultural Affairs (1998) 83 FCR 574 at 580. It is also referred to as the accepted approach in Pearce, DC and Geddes, RS, Statutory Interpretation in Australia (7th edition, 2011, LexisNexis Butterworths) at 238, [6.47].
30 Following the Acts Interpretation Amendment Act 2011 (Cth), s 36 of the Acts Interpretation Act was amended, with effect from 27 December 2011. As the Federal Magistrate concluded, the amendment did not affect the service of the bankruptcy notice that that had already taken place: see Acts Interpretation Act, s 7(2); Maxwell v Murphy (1957) 96 CLR 261 at 267.
31 Accordingly, there is no reasonably discernible error evident in the Federal Magistrate's conclusion that the bankruptcy notice was served within the time allowed by regulation 4.02A of the Bankruptcy Regulations. Although it may be unnecessary to decide the issue definitively, I too would accept that the bankruptcy notice was served within the requisite time.
32 In this event, it was, as the Federal Magistrate observed, unnecessary to consider the first respondent's submission on the timing point about the interaction of the Federal Magistrates Court (Bankruptcy) Rules 2006 (Cth) and the Federal Magistrates Rules 2001 (Cth). It seemed to me, at least provisionally, that there were a number of difficulties with this submission, which did not, in any event, have the benefit of argument.
33 As noted above, Ms Sopikiotis raised the question whether the bankruptcy notice was validly served on her. In this case, as already noted, on 21 April 2010, the petitioning creditor, Owners Corporation RP017740 ("Owners Corporation"), obtained an order in the VCAT against Ms Sopikiotis for the payment of $16, 691.22 together with interest and costs. The affidavit of Richelle Berman dated 10 December 2012, which was filed in the Federal Magistrates Court, supported the proposition that Owners Corporation took all reasonable steps to notify Ms Sopikiotis of the progress of the VCAT proceeding. Ms Sopikiotis did not attend the VCAT and she did not make any payment, as ordered, to Owners Corporation. I interpolate here that an application for review filed in VCAT on 21 May 2012 in respect of the 21 April 2010 decision was unsuccessful. A subsequent application to the Victorian Supreme Court for judicial review also failed.
34 Ultimately, on 18 August 2010, Owners Corporation had a bankruptcy notice issued claiming a total debt of $28,326.97. There were difficulties in effecting service of the notice but the evidence in the Federal Magistrates Court justified a finding that the notice was served on Ms Sopikiotis on 18 February 2011. I would therefore reject Ms Sopikiotis' claim that there was insufficient evidence that the bankruptcy notice had been served on her. Further, there was no evidence before the Federal Magistrate or before me to justify Ms Sopikiotis' claim that the issue of the bankruptcy notice involved an abuse of process.
35 In any event, while the claimed debt remained unpaid, Owners Corporation served a creditors petition on Ms Sopikiotis. There was sufficient evidence in the Federal Magistrates Court to justify a finding that the petition was served on Ms Sopikiotis and, indeed, she subsequently attended hearings regarding the petition.
36 A bankruptcy notice may issue on the application of a creditor who has obtained a final judgment or order (as described in s 40(1)(g) of the Bankruptcy Act) "for an amount of at least $5,000": see Bankruptcy Act, s 41(1)(a). As noted, Ms Sopikiotis argued that the debts that founded the 21 April 2010 VCAT order and ultimately the bankruptcy notice were statute-barred since they had arisen more than six years before: see Limitation of Actions Act 1958 (Vic), s 5. As the 10 December 2010 affidavit of Richelle Berman (see [33] above) makes clear, however, even if some part of the debts were statute-barred, there remained a total sum of $8,317.12 (excluding interest and costs) that had been incurred between 1 May 2004 and 1 May 2009. Fee notices/arrears notices were exhibited to Ms Berman's affidavit. There is no basis for saying that this amount was statute-barred. As the Federal Magistrate noted, there was therefore no basis to undo the sequestration order: see Olivieri v Stafford & Ors (1989) 24 FCR 413 at 429-432 and Re Longo: ex parte Longo (1995) 57 FCR 523 at 530. Further, it was, as his Honour said, unnecessary to consider whether or not the debts in question were specialty debts.
37 There is therefore no tenable basis to attribute error to his Honour in relation to his conclusion on these issues.
38 As already noted, Ms Sopikiotis also challenged the form of the bankruptcy notice on the basis that it stated that the creditor's address was "C/- LMS lawyers. Level 5, 606 St Kilda Road, Melbourne, Victoria" and that the debt could be paid to "LMS lawyers. Level 5, 606 St Kilda Road, Melbourne Victoria 3004". This argument was not apparently advanced in the Federal Magistrates Court, which might have been sufficient reason to reject its relevance on this application. It is unnecessary to take this course, however, because I consider that, in any event, Ms Sopikiotis' submission would have been rejected. In Bank of Melbourne v Hannan (1997) 78 FCR 249, Northrop J held that, notwithstanding that a failure to state the creditor's address in accordance with the prescribed form as required by Regulation 4.02(1) of the Bankruptcy Regulations was "a formal defect or irregularity" (at 252), there had in fact been substantial compliance with the Regulations. After referring to s 306(1) of the Bankruptcy Act, his Honour concluded, at 253, that "[t]he bankruptcy notice cannot be regarded as capable of misleading and accordingly cannot be said to be a nullity". I would, for the same reason, conclude that the bankruptcy notice in this case was not a nullity by virtue of any suggested formal defect or irregularity. It is evident that any such defect could not have caused "substantial injustice" of the kind referred to in s 306(1) of the Bankruptcy Act.
39 Ms Sopikiotis disputed that the debts were genuine, but, as the Federal Magistrate observed, allowing that he was not engaged in a trial of the issue, there was ample evidence before him to make out a prima facie case that the debts were in truth owing.
40 Ms Sopikiotis advanced a number of other arguments in this Court that were not apparently advanced before his Honour in the Federal Magistrates Court, including that the VCAT order was not a final judgment or final order for the purposes of s 40(1)(g) of the Bankruptcy Act and that an impermissible rate was applied to determine interest on outstanding liabilities. Apart from the fact that these arguments were not advanced before the Federal Magistrate, there is no sufficient basis shown to indicate that they might have a tenable basis. See, for example with respect to a "final judgment": s 40(3) of the Bankruptcy Act and s 121(1) of the Victorian Civil and Administrative Tribunal Act 1998 (Vic). Further, as the Federal Magistrate pointed out to Ms Sopikiotis, some of these issues might appropriately be raised with the second respondent as trustee of the bankrupt estate.
41 Finally, it was clearly open to his Honour to find that Ms Sopikiotis had not provided any satisfactory explanation for her delay in seeking to review the Registrar's sequestration order. As already stated, Ms Sopikiotis filed her application to review the sequestration order on 26 September 2012, which was some 14 months after the order was made on 5 July 2011. She was aware of the creditor's petition in June 2011, having attended hearings concerning it then. Unless granted an extension, Ms Sopikiotis had 21 days after the sequestration order was made in which to file her review application: see Federal Magistrates Court (Bankruptcy) Rules 2006, r 2.03(1). The delay was lengthy when compared with the stipulated period. As the Federal Magistrate indicated (FMC 2013 Reasons at [10]), at a hearing on 8 November 2012, another Federal Magistrate had put Ms Sopikiotis on notice that she would need an extension of time before she could proceed to seek review and this in turn required her to explain her delay. Her explanation was that she acquired information in mid 2012 that, in her opinion, would have prevented the making of the sequestration order in July 2011.
42 As the Federal Magistrate noted, however, there was evidence that Ms Sopikiotis knew of the sequestration order in July 2011 and, by May 2011, of the VCAT debt and the bankruptcy notice. Before his Honour, Ms Sopikiotis did not specifically identify the information that she said had not come to her notice until mid 2012, but which, in her opinion, would have prevented the making of the sequestration order. In this Court, Ms Sopikiotis said that she had discovered that, in the VCAT, Owners Corporation had filed an incorrect address for her, which meant that she had not known of the hearing that led to the VCAT order on 21 April 2010. She did not explain her failure to acquire such information before mid 2012. As already noted, however, Ms Berman's affidavit of 10 December 2012, filed in the Federal Magistrates Court, evidenced that Owners Corporation had taken all reasonable steps to notify Ms Sopikiotis of the progress of the VCAT proceeding. Ms Sopikiotis' later application for review of the 21 April 2010 decision, filed in the VCAT on 21 May 2012, was unsuccessful, as was a subsequent application to the Victorian Supreme Court for judicial review.
43 At the hearing on 22 March 2013, Ms Sopikiotis also said, for the first time, that, when she first received the creditor's petition, she mistakenly thought it was a bankruptcy notice. As counsel for the first respondent noted, Ms Sopikiotis was represented by lawyers at the time the creditor's petition was first on foot and she herself was present at some hearings at which the petition was adjourned. In this circumstance, her statement that she mistook the creditors' petition for a bankruptcy notice is not credible.
44 For the above reasons, Ms Sopikiotis has failed to establish that, in all the circumstances, the decision is attended with sufficient doubt to warrant being reconsidered by an appellate court. She has therefore failed to satisfy the two-part test applicable where an application for leave to appeal is sought. Accordingly, I would reject the application made by Ms Sopkiotis for leave to appeal against the decision of the Federal Magistrate made on 22 February 2013. The application for leave to appeal is refused, with costs.
I certify that the preceding forty-four (44) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Kenny.