Re Stecca, R.A. Ex parte Scott, A.G. v. Stevens Sheet Metal P/L [1994] FCA 968

Re Stecca, R.A. Ex parte Scott, A.G. v. Stevens Sheet Metal P/L [1994] FCA 968

The payment of $8,346.07 to the respondent was not made in the ordinary course of business within the meaning of s 122(2)(a) of the Bankruptcy Act, even though the respondent acted in good faith. Accordingly, the payment is void as against the trustee.

Parties
Bankrupt: Roger Alec Stecca; Trustee/applicant: Alan Geoffrey Scott; Respondent/creditor: Stevens Sheet Metal Pty Ltd ACN 008 221 001
Jurisdiction
Australia
Judgment Date
12 December 1994
Procedural Posture
Bankruptcy Application / Judgment at First Instance
Outcome
Payment of $8,346.07 by the bankrupt to the respondent declared void as against the trustee.
Legal Topics
Preferential Payments, Voidable Transactions, Good Faith Defence, Ordinary Course of Business
Bankruptcy Preferential Payments Voidable Transactions Good Faith Defence Ordinary Course of Business

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Parties

Roger Alec Stecca

Bankrupt

Alan Geoffrey Scott

Trustee/applicant

Stevens Sheet Metal Pty Ltd ACN 008 221 001

Respondent/creditor

Procedural Posture

Bankruptcy Application / Judgment at First Instance

Legal Issues

  1. 1 Whether the payment of $8,346.07 by the bankrupt to the respondent is void as against the trustee under s 122 of the Bankruptcy Act 1966
  2. 2 Whether the respondent was a payee in good faith
  3. 3 Whether the payment was received in the ordinary course of business

Ratio Decidendi

The payment of $8,346.07 to the respondent was not made in the ordinary course of business within the meaning of s 122(2)(a) of the Bankruptcy Act, even though the respondent acted in good faith. Accordingly, the payment is void as against the trustee.

Court Disposition

Payment of $8,346.07 by the bankrupt to the respondent declared void as against the trustee.

Orders

  • It is declared that the payment made on 1 October 1993 by Mr Stecca to the respondent of $8,346.07 is void as against the applicant.