Dixon v Todd [1904] HCA 52

Dixon v Todd [1904] HCA 52

Since the bill of sale had no effect until registered, the effective date of execution for the purposes of the Insolvency Act is the date of registration. As the consideration was paid earlier than the registration date, it was not contemporaneous, making the bill of sale liable to be avoided as a fraudulent preference under s. 109 of the Insolvency Act.

Parties
Appellant: Dixon; Respondent: Topp; Maker of the Bill of Sale: William Lovell; Assignee/mortgagee: J. W. Todd
Jurisdiction
Australia
Judgment Date
18 May 1904
Procedural Posture
Appeal / High Court Appeal From Full Court of the Supreme Court of Queensland
Outcome
Appeal allowed
Legal Topics
Effect of Registration on Bills of Sale, Voidable Transactions in Insolvency, Contemporaneous Consideration, Statutory Interpretation
Insolvency Bills of Sale Effect of Registration on Bills of Sale Voidable Transactions in Insolvency Contemporaneous Consideration Statutory Interpretation

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Parties

Dixon

Appellant

Topp

Respondent

William Lovell

Maker of the Bill of Sale

J. W. Todd

Assignee/mortgagee

Procedural Posture

Appeal / High Court Appeal From Full Court of the Supreme Court of Queensland

Legal Issues

  1. 1 Does a bill of sale executed but not registered until a later date for a then-present advance of money, where insolvency follows within six months, avoid the transaction as against the trustee in insolvency if consideration was not contemporaneous with the statutory date of execution?
  2. 2 How is the date of execution determined for the purpose of laws avoiding assignments against creditors under the Bills of Sale Act 1891 (Qld), section 4, and the Insolvency Act 1874 (Qld)?

Ratio Decidendi

Since the bill of sale had no effect until registered, the effective date of execution for the purposes of the Insolvency Act is the date of registration. As the consideration was paid earlier than the registration date, it was not contemporaneous, making the bill of sale liable to be avoided as a fraudulent preference under s. 109 of the Insolvency Act.

Court Disposition

Appeal allowed

Orders

  • Decisions of the learned Judge of first instance and the Full Court are reversed.
  • The matter is remitted to the Supreme Court to be dealt with according to law as declared.