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Lane (Trustee), in the matter of Lee (Bankrupt) v Deputy Commissioner of Taxation [2017] FCA 953

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BANKRUPTCY AND INSOLVENCY - trustee in bankruptcy's right to insolvent trustee's right of exoneration - discussion of the nature of the right of exoneration - whether the funds are to be distributed to all creditors or only to trust creditors - whether right of indemnity "property divisible among the bankrupt's creditors" or trust property BANKRUPTCY AND INSOLVENCY - trustee's right of indemnity - whether bankruptcy changed the nature of the right of exoneration - whether the priority regime in s 109 of the Bankruptcy Act 1966 (Cth) applies to the use of the right of exoneration - trust creditors paid pari passu - whether the right of exoneration ought to be exhausted before dividends are paid - "hotchpot" principle considered BANKRUPTCY AND INSOLVENCY - costs expenses and remuneration of trustee in bankruptcy - use of the right of indemnity to meet the costs expenses and remuneration of bankruptcy trustee - consideration of Berkeley Applegate principles - consideration of Universal Distributing principles - reasonableness of remuneration of trustee TRUSTS AND TRUSTEES - trustee's right of indemnity - nature of the trustee's right of indemnity - trustee's equitable lien supporting the right of exoneration - whether trustee's right of indemnity is trust property

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