Royal v El Ali [2016] FCA 782

Royal v El Ali [2016] FCA 782

The transfers of shares and properties orchestrated by Mr El Ali were effected with the intent to defraud creditors and/or hinder, delay, or defeat their recovery, within the meaning of s 37A Conveyancing Act 1919 (NSW) and s 121 Bankruptcy Act 1966 (Cth). The purported trust structures were not proven to be effective at the time of the challenged dispositions; the respondents' evidence was not credible; and the necessary statutory defences were not established. Therefore, the transactions are voidable as against the trustee in bankruptcy and creditors.

Jurisdiction
Australia
Judgment Date
05 July 2016
Procedural Posture
Civil Bankruptcy/commercial / Post Trial, Judgment
Outcome
Judgment for the applicants; relief granted. Final orders to be settled upon proposed minutes to Chambers.
Legal Topics
['voidable Transactions' 'intent to Defraud Creditors' 'alienation of Property' 'share Transfers' 'trust Property' 'good Faith Defence']
['bankruptcy' 'property Law' 'trusts Law' 'insolvency'] ['voidable Transactions' 'intent to Defraud Creditors' 'alienation of Property' 'share Transfers' 'trust Property' 'good Faith Defence']

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Procedural Posture

Civil Bankruptcy/commercial / Post Trial, Judgment

Legal Issues

  1. 1 ['Whether certain share and property transfers were void or voidable as against the trustee in bankruptcy under s 37A Conveyancing Act 1919 (NSW) and/or s 121 Bankruptcy Act 1966 (Cth)' "Whether properties were held on trust or in companies' own right" 'Whether intent to defraud creditors existed' 'Whether defences of good faith and lack of notice were established']

Ratio Decidendi

The transfers of shares and properties orchestrated by Mr El Ali were effected with the intent to defraud creditors and/or hinder, delay, or defeat their recovery, within the meaning of s 37A Conveyancing Act 1919 (NSW) and s 121 Bankruptcy Act 1966 (Cth). The purported trust structures were not proven to be effective at the time of the challenged dispositions; the respondents' evidence was not credible; and the necessary statutory defences were not established. Therefore, the transactions are voidable as against the trustee in bankruptcy and creditors.

Court Disposition

Judgment for the applicants; relief granted. Final orders to be settled upon proposed minutes to Chambers.

Orders

  • ['The parties provide, by email to Chambers, proposed short minutes of order to give effect to these reasons on or before 26 July 2016.']