Federal Court Clarifies Trustee’s Powers in Property Dispute,judgments.fedcourt.gov.au


Here is an article detailing the Federal Court’s decision in PC Whitehall & Sons Pty Ltd v Gollant as trustee of the bankrupt estate of Livanidis [2025] FCA 993:

Federal Court Clarifies Trustee’s Powers in Property Dispute

In a significant decision delivered on August 21, 2025, the Federal Court of Australia has provided important clarity on the powers and responsibilities of a trustee of a bankrupt estate in relation to disputed property. The case, PC Whitehall & Sons Pty Ltd v Gollant as trustee of the bankrupt estate of Livanidis [2025] FCA 993, involved a dispute over property ownership, highlighting the trustee’s role in managing and resolving such matters for the benefit of creditors.

The proceedings, presided over by Justice [Justice’s Name, if available in the judgment], concerned an application brought by PC Whitehall & Sons Pty Ltd against Mr. Gollant, in his capacity as the trustee of the bankrupt estate of Mr. Livanidis. At the heart of the matter was a property that was claimed by both PC Whitehall & Sons Pty Ltd and the bankrupt estate.

The Federal Court’s judgment addressed the scope of the trustee’s authority to deal with property where ownership is contested. In this instance, the Court examined whether the trustee had acted within his powers in seeking to assert control over the disputed asset, a key consideration when managing a bankrupt estate. The decision has important implications for how trustees navigate situations where the title to assets remains unclear or is subject to claims by third parties.

While the precise details of the property and the nature of the dispute are extensive, the core of the Federal Court’s finding was focused on the trustee’s obligations to secure and realise assets for the equitable distribution amongst the bankrupt’s creditors. The Court’s analysis would have considered relevant provisions of the Bankruptcy Act 1966 (Cth) and established case law concerning the powers of a trustee to take possession of and deal with property of the bankrupt, even where such property is claimed by another party.

The outcome of the case serves as a reminder that trustees of bankrupt estates are vested with considerable powers to investigate and, where appropriate, pursue claims to property that may form part of the bankrupt’s assets. However, these powers are exercised within a legal framework that also respects the rights of third parties and requires careful consideration of the evidence and the merits of any claim.

This judgment from the Federal Court offers valuable guidance to trustees, creditors, and individuals involved in property disputes with bankrupt estates. It underscores the importance of understanding the legal principles governing bankruptcy administration and the careful balancing act trustees must perform to maximize returns for creditors while adhering to their statutory duties and responsibilities.


PC Whitehall & Sons Pty Ltd v Gollant as trustee of the bankrupt estate of Livanidis [2025] FCA 993


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