Palette Shoes Pty Ltd (In Liquidation) v Krohn [1937] HCA 37

Palette Shoes Pty Ltd (In Liquidation) v Krohn [1937] HCA 37

The agreement did not require registration as a bill of sale as it did not confer a power to seize or take possession of property. Nor did it constitute a written assignment of book debts requiring registration under Part IX. of the Instruments Act 1928. The company received proceeds on behalf of the plaintiffs and held them on trust. Accordingly, the moneys in question belong to the plaintiffs and not to the general creditors of the company in liquidation.

Parties
Appellant; Defendant: Palette Shoes Proprietary Limited (in liquidation); Respondents; Plaintiffs: Krohn and Another (Herman Hedges Krohn and Charles William Nodrum)
Jurisdiction
Australia
Procedural Posture
Appeal / On Appeal From the Supreme Court of Victoria
Outcome
Appeal dismissed
Legal Topics
Bills of Sale, Assignment of Book Debts, Trusts—constructive Trusts, Agency, Sale of Goods—passing of Property
Commercial Law Trusts and Equity Corporations Law Bills of Sale Assignment of Book Debts Trusts—constructive Trusts Agency Sale of Goods—passing of Property

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 26 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Palette Shoes Proprietary Limited (in liquidation)

Appellant; Defendant

Krohn and Another (Herman Hedges Krohn and Charles William Nodrum)

Respondents; Plaintiffs

Procedural Posture

Appeal / On Appeal From the Supreme Court of Victoria

Legal Issues

  1. 1 Whether the agreement between the parties is invalid as an unregistered bill of sale under Part VI. of the Instruments Act 1928 (Vict.).
  2. 2 Whether the agreement is invalid as an unregistered assignment of book debts under Part IX. of the Instruments Act 1928 (Vict.).
  3. 3 Whether the moneys received by the company from customers are held on trust for the plaintiffs.

Ratio Decidendi

The agreement did not require registration as a bill of sale as it did not confer a power to seize or take possession of property. Nor did it constitute a written assignment of book debts requiring registration under Part IX. of the Instruments Act 1928. The company received proceeds on behalf of the plaintiffs and held them on trust. Accordingly, the moneys in question belong to the plaintiffs and not to the general creditors of the company in liquidation.

Court Disposition

Appeal dismissed

Orders

  • Judgment for plaintiffs, respondents; moneys held by the defendant company as trustee for the plaintiffs; appeal dismissed with costs.