El-Debel v Micheletto (Trustee) [2021] FCAFC 117

El-Debel v Micheletto (Trustee) [2021] FCAFC 117

Each property is held on resulting trust for the bankrupt to the extent the bankrupt is proved to have contributed to the purchase price; presumption of resulting trust is not rebutted except as to specific contributions that could not be attributed to the bankrupt, and no error shown in reasoning about who provided funds; resulting trust interests vest in trustees in bankruptcy or trustee of the earlier bankruptcy, depending on timing.

Parties
First Appellant: Bachar El-Debel; Second Appellant: Fatme El-Debel; Third Appellant: Ronia Ayad; Appellant (nsd 1029 of 2020): Fallow Investments Pty Ltd; First Respondent: Fabian Kane Micheletto (Trustee in bankruptcy of the estate of Bachar El-Debel); Second Respondent: Michael Carrafa (Trustee in bankruptcy of the estate of Bachar El-Debel)
Jurisdiction
Australia
Judgment Date
30 June 2021
Procedural Posture
Appeal / Judgment
Outcome
Appeals allowed in part; otherwise dismissed.
Legal Topics
Resulting Trust, Presumption of Resulting Trust, Beneficial Interest, Rebuttal of Presumption, Oral Trust, Burden of Proof, Jones V Dunkel Inference, Contributions to Purchase Price
Bankruptcy Insolvency Trusts Resulting Trust Presumption of Resulting Trust Beneficial Interest Rebuttal of Presumption Oral Trust +3 more

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Parties

Bachar El-Debel

First Appellant

Fatme El-Debel

Second Appellant

Ronia Ayad

Third Appellant

Fallow Investments Pty Ltd

Appellant (nsd 1029 of 2020)

Fabian Kane Micheletto (Trustee in bankruptcy of the estate of Bachar El-Debel)

First Respondent

Michael Carrafa (Trustee in bankruptcy of the estate of Bachar El-Debel)

Second Respondent

Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 Whether interests in properties registered in associated parties' names are held on resulting trust for the bankrupt
  2. 2 Whether presumption of resulting trust is rebutted by evidence of contrary intention
  3. 3 Whether payments from associated companies are contributions by the bankrupt

Ratio Decidendi

Each property is held on resulting trust for the bankrupt to the extent the bankrupt is proved to have contributed to the purchase price; presumption of resulting trust is not rebutted except as to specific contributions that could not be attributed to the bankrupt, and no error shown in reasoning about who provided funds; resulting trust interests vest in trustees in bankruptcy or trustee of the earlier bankruptcy, depending on timing.

Court Disposition

Appeals allowed in part; otherwise dismissed.

Orders

  • Declarations made by orders 1 and 7 vacated and replaced with declaration that Bankstown Property is held by Fatme El-Debel on resulting trust for Bachar El-Debel to 80%.
  • On undertaking to deal with trustee of earlier bankruptcy, rights and interests specified in declaration are property of Bachar El-Debel vested in either applicants as trustees in bankruptcy or trustee of earlier estate.