Prentice v Cummins (No 5) [2002] FCA 1503

Prentice v Cummins (No 5) [2002] FCA 1503

On the evidence adduced, including the bankrupt's knowledge of longstanding unassessed and inevitable tax liabilities, his total divestment of substantial assets without consideration in 1987, and absence of satisfactory alternate explanations, the court infers that the main purpose of the asset transfers was to prevent the property from becoming divisible among creditors, especially the ATO, within the meaning of s 121 Bankruptcy Act. No case submissions fail for these claims but succeed for money transfers and certain alternate arguments due to evidentiary insufficiency.

Parties
First Applicant: Maxwell William Prentice; Second Applicant: Mark Julian Robinson; Second Respondent: Mary Elizabeth Cummins; Third Respondent: Aymcopic Pty Limited; Fourth Respondent: Hospitality Hire Pty Limited
Jurisdiction
Australia
Judgment Date
05 December 2002
Procedural Posture
Bankruptcy Application / Ruling on No Case Submissions After Applicants' Evidence in Chief
Outcome
No case submissions succeed in part and fail in part; proceedings to continue on unresolved matters.
Legal Topics
Voidable Transactions, Intention to Defeat Creditors, Judicial Notice, No Case Submission
Bankruptcy Evidence Practice and Procedure Voidable Transactions Intention to Defeat Creditors Judicial Notice No Case Submission

Case Brief

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Parties

Maxwell William Prentice

First Applicant

Mark Julian Robinson

Second Applicant

Mary Elizabeth Cummins

Second Respondent

Aymcopic Pty Limited

Third Respondent

Hospitality Hire Pty Limited

Fourth Respondent

Procedural Posture

Bankruptcy Application / Ruling on No Case Submissions After Applicants' Evidence in Chief

Legal Issues

  1. 1 Whether transfers of property by a bankrupt to related parties were void under s 121 Bankruptcy Act 1966 (Cth) for the main purpose of defeating or delaying creditors
  2. 2 Whether court can take judicial notice of the Australia Card Bill and related political history under Evidence Act 1995 (Cth), s 144
  3. 3 Principles applicable to no case submissions in civil proceedings

Ratio Decidendi

On the evidence adduced, including the bankrupt's knowledge of longstanding unassessed and inevitable tax liabilities, his total divestment of substantial assets without consideration in 1987, and absence of satisfactory alternate explanations, the court infers that the main purpose of the asset transfers was to prevent the property from becoming divisible among creditors, especially the ATO, within the meaning of s 121 Bankruptcy Act. No case submissions fail for these claims but succeed for money transfers and certain alternate arguments due to evidentiary insufficiency.

Court Disposition

No case submissions succeed in part and fail in part; proceedings to continue on unresolved matters.

Orders

  • The claims made in paragraphs 10-15 and 28-37 of the further amended statement of claim are dismissed.
  • The proceedings be relisted for a further hearing to resolve outstanding issues.