Taylor v Hatzipapas, in the matter of Hatzipapas

Judgment (2 paragraphs)

[1]

Pursuant to section 30(1) and/or section 30(5) of the Bankruptcy Act 1966 (Cth), within 14 days of the date of service of these Orders the respondent is to file with the Official Receiver in Bankruptcy and serve on the applicant a duly completed statement of affairs in compliance with section 54 of the Bankruptcy Act 1966 (Cth).
Pursuant to section 30(1) and/or section 30(5) of the Bankruptcy Act 1966 (Cth), within 14 days of the date of service of these Orders the respondent is to comply with the written requirements of the applicant dated 12 May 2020 and 20 August 2020 by (in addition to complying with order 1 above): (a) delivering up to the applicant all property belonging to the respondent that is not listed in sub-section 116(2) of the Bankruptcy Act 1966 (Cth) and/or regulations 27 to 30 of the Bankruptcy Regulations 2021 (Cth); (b) producing to the applicant a list containing the details of all bank and other financial institution accounts operated by the respondent (including bank and other financial institution accounts to which the respondent has access); (c) in addition to (b) above, producing to the applicant copies of all documents, books and records pertaining to the personal and financial affairs of the respondent as well as the financial affairs of any of his associated entities (as defined by sections 5 to 5E of the Bankruptcy Act 1966 (Cth)); (d) surrendering to the applicant the respondent's passport(s) (if any); (e) attending at a location and time to be nominated by the applicant for the purposes of conducting an interview with the applicant; (f) producing to the applicant a statement of account detailing how the proceeds of a loan of $550,000.00 made to the respondent by Zyber Holdings Limited in 2019 ("the Zyber Loan") were spent by the respondent and the purpose(s) for which the proceeds of the loan were spent; (g) producing to the applicant a list containing details of any repayments of the Zyber Loan; (h) producing to the applicant a statement detailing the whereabouts of any money advanced as part of the Zyber Loan that has not been spent or repaid; and (i) producing to the applicant all supporting documentation in respect of (f) and (h) above.

GOODMAN J 1 By application filed 1 February 2023, the applicant trustee seeks orders pursuant to s 30 of the Bankruptcy Act 1966 (Cth) requiring the respondent to provide a completed statement of affairs and to comply with written directions made to him and written requirements made of him by the trustee. 2 The trustee relies upon his affidavit made on 31 January 2023 (trustee's affidavit), an affidavit of Mr Bart Dziubinski made on 2 March 2023 and an affidavit of Ms Yiik Chew made on 3 March 2023. That evidence establishes, in so far as is presently relevant, the following. 3 On 8 May 2020, the respondent became bankrupt upon the making of a sequestration order by Judge Manousaridis of the (then) Federal Circuit Court of Australia: Puddick v Hatzipapas [2020] FCCA 1070. The trustee was appointed as trustee of the respondent's bankrupt estate on the same day. 4 On 12 May 2020, the trustee's office sent by registered post to the respondent's known residential address (Bridgnorth Street premises) a letter of that date addressed to the respondent which, amongst other things, required the respondent to: (1) complete a statement of affairs; (2) attend an interview with the trustee; (3) deliver his property to the trustee; (4) provide all documents, books and records pertaining to his financial and personal affairs; and (5) surrender his passport to the trustee. 5 On 20 August 2020, the trustee caused a letter addressed to the respondent to be sent to the Bridgnorth Street premises which contained a direction to the respondent under s 77 of the Act to provide particular information to the trustee. 6 The respondent has not complied with the trustee's directions and requirements. 7 On 1 March 2023 I made orders (1 March 2023 orders) for substituted service of the application and the trustee's affidavit (which included copies of the 12 May 2020 and 20 August 2020 correspondence), with such service being taken to have been effected upon completion of the following actions: leaving the application, the trustee's affidavit and the orders made on that day (together, the Documents) in the letterbox at the Bridgnorth Street premises and as close as is reasonably practicable to the front door at the Bridgnorth Street premises; sending the Documents by email to specified email addresses apparently associated with the respondent; and sending or causing to be sent an SMS message to a mobile telephone number apparently associated with the respondent. My reasons for making the 1 March 2023 orders are set out in Taylor v Hatzipapas, in the matter of Hatzipapas [2023] FCA 153. 8 Each of the actions described in the 1 March 2023 orders was taken. The respondent has not filed a notice of appearance or taken any other step in the proceeding. Nor has he made any contact with the trustee or the trustee's solicitors. 9 The trustee calls in aid s 30(1) and (5) of the Act. The former sub-section provides the Court with a general power to make orders necessary for the purposes of carrying out or giving effect to the Act; and the latter subsection provides, amongst other things, a power to require a bankrupt to comply with a direction or requirement of a trustee under the Act. 10 The evidence establishes a failure by the respondent to comply with various directions and requirements of the trustee and the Act and that service of the Documents has occurred. In these circumstances, it is appropriate that orders be made requiring compliance with the directions and requirements of the trustee and the Act. It is also appropriate to grant leave to the trustee to effect service of the orders made today by the same means of substituted service as described in the 1 March 2023 orders. 11 For these reasons, I will make the orders sought by the trustee. I certify that the preceding eleven (11) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Goodman.

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