Royal v El Ali (No 2) [2016] FCA 1156

Royal v El Ali (No 2) [2016] FCA 1156

Declarations were made that the specified transactions were void as against the trustee of the bankrupt estate, vesting orders for shares issued, registers corrected to record the trustee, winding up orders granted for Ottoman and Isaac & Jacob on just and equitable grounds due to fraud/misconduct, and distribution orders prioritising indemnifying creditors. The value for Potts Point property was set at $10,000 based on evidence of market valuation.

Parties
First Applicant: Peter Paul Royal; Second Applicant: Judith Louise Royal; Third Applicant / Applicant (nsd 771 of 2014): Michael Gregory Jones in his capacity as Trustee of the Bankrupt Estate of Nathan El Ali; First Respondent: Nathan El Ali; Second Respondent: Mahmoud El Ali; Third Respondent (nsd 1731 of 2013): Mahmoud Zreika; Fourth Respondent: Saracen Holdings Pty Limited; Fifth Respondent (nsd 1731 of 2013): Ottoman Investments Pty Limited; Sixth Respondent (nsd 1731 of 2013): Otsi Stojanovski; Third Respondent (nsd 771 of 2014): John Rene Nazloomian; Fifth Respondent (nsd 771 of 2014): Isaac & Jacob Pty Limited
Jurisdiction
Australia
Judgment Date
23 September 2016
Procedural Posture
Bankruptcy and Corporations / Final Judgment With Orders
Outcome
Orders made granting leave to proceed, declaring transfers void, vesting shares, correcting registers, winding up companies, prioritising indemnifying creditors, and specifying payment amounts; winding up applications granted; costs orders to be determined later.
Legal Topics
Voidable Transactions, Correction of Share Registers, Winding Up on Just and Equitable Grounds, Distribution Orders for Indemnifying Creditors, Standing of Trustee
Bankruptcy Corporations Law Voidable Transactions Correction of Share Registers Winding Up on Just and Equitable Grounds Distribution Orders for Indemnifying Creditors Standing of Trustee

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Parties

Peter Paul Royal

First Applicant

Judith Louise Royal

Second Applicant

Michael Gregory Jones in his capacity as Trustee of the Bankrupt Estate of Nathan El Ali

Third Applicant / Applicant (nsd 771 of 2014)

Nathan El Ali

First Respondent

Mahmoud El Ali

Second Respondent

Mahmoud Zreika

Third Respondent (nsd 1731 of 2013)

Saracen Holdings Pty Limited

Fourth Respondent

Ottoman Investments Pty Limited

Fifth Respondent (nsd 1731 of 2013)

Otsi Stojanovski

Sixth Respondent (nsd 1731 of 2013)

John Rene Nazloomian

Third Respondent (nsd 771 of 2014)

Isaac & Jacob Pty Limited

Fifth Respondent (nsd 771 of 2014)

Procedural Posture

Bankruptcy and Corporations / Final Judgment With Orders

Legal Issues

  1. 1 Whether certain share and property transfers are void under Bankruptcy Act and Conveyancing Act
  2. 2 Whether trustee is entitled to be registered holder of shares
  3. 3 Whether trustee has standing to apply for winding up

Ratio Decidendi

Declarations were made that the specified transactions were void as against the trustee of the bankrupt estate, vesting orders for shares issued, registers corrected to record the trustee, winding up orders granted for Ottoman and Isaac & Jacob on just and equitable grounds due to fraud/misconduct, and distribution orders prioritising indemnifying creditors. The value for Potts Point property was set at $10,000 based on evidence of market valuation.

Court Disposition

Orders made granting leave to proceed, declaring transfers void, vesting shares, correcting registers, winding up companies, prioritising indemnifying creditors, and specifying payment amounts; winding up applications granted; costs orders to be determined later.

Orders

  • Leave granted to applicants to proceed against Saracen Holdings Pty Ltd (in liquidation)
  • Transactions listed declared void per Bankruptcy Act and Conveyancing Act