Harrison v Nandicorp Pty Ltd [2021] FCA 1603

Harrison v Nandicorp Pty Ltd [2021] FCA 1603

The East Perth Property was owned personally by Mr Gunasegaram and is thus part of the bankrupt estate; Mr Gunasegaram fraudulently backdated documents and remained the trustee of the TRM Trust during the relevant employment period, but as his liability arose from deceit, the estate is not entitled to indemnity from trust assets; the transfer of $475,150 to the TRM Investments Trust and payments for improvements to the Iluka Property are voidable transactions under s 120(1) of the Bankruptcy Act as they were for no consideration within the relevant period before bankruptcy.

Parties
Applicant: Brett Richard Geoffrey Harrison; First Respondent: Deidre Gunasegaram; Second Respondent: Nandicorp Pty Ltd
Jurisdiction
Australia
Judgment Date
17 December 2021
Procedural Posture
Application by Trustee in Bankruptcy for Declarations / Final Judgment
Outcome
Declarations granted in favour of the applicant; applicant to draft minute of order to give effect to judgment; proceeds of sale ordered paid to estate to the extent of voidable transactions; directions for costs submissions given.
Legal Topics
Voidable Transactions Under Bankruptcy Act, Indemnity Rights of Trustee, Ownership of Trust Assets, Trustee's Right of Indemnity in Case of Fraud
Bankruptcy and Insolvency Trusts and Trustees Voidable Transactions Under Bankruptcy Act Indemnity Rights of Trustee Ownership of Trust Assets Trustee's Right of Indemnity in Case of Fraud

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Parties

Brett Richard Geoffrey Harrison

Applicant

Deidre Gunasegaram

First Respondent

Nandicorp Pty Ltd

Second Respondent

Procedural Posture

Application by Trustee in Bankruptcy for Declarations / Final Judgment

Legal Issues

  1. 1 Whether proceeds of sale of East Perth Property are asset of bankrupt estate or TRM Trust
  2. 2 Whether Mr Gunasegaram was trustee of TRM Trust during relevant period
  3. 3 Whether Mr Gunasegaram/the Estate is entitled to indemnity from TRM Trust for liability

Ratio Decidendi

The East Perth Property was owned personally by Mr Gunasegaram and is thus part of the bankrupt estate; Mr Gunasegaram fraudulently backdated documents and remained the trustee of the TRM Trust during the relevant employment period, but as his liability arose from deceit, the estate is not entitled to indemnity from trust assets; the transfer of $475,150 to the TRM Investments Trust and payments for improvements to the Iluka Property are voidable transactions under s 120(1) of the Bankruptcy Act as they were for no consideration within the relevant period before bankruptcy.

Court Disposition

Declarations granted in favour of the applicant; applicant to draft minute of order to give effect to judgment; proceeds of sale ordered paid to estate to the extent of voidable transactions; directions for costs submissions given.

Orders

  • The applicant is to provide a draft minute of order by 21 January 2022 giving effect to reasons for judgment.
  • Declaration that proceeds of sale of the East Perth Property are an asset of the bankrupt estate.