Rambaldi v Mullins (No 2) [2016] FCA 977

Rambaldi v Mullins (No 2) [2016] FCA 977

The court found the bankrupt beneficially owned half the shares in companies operating the Global business; agreements entered into by Antoun as agent for the bankrupt in respect of half of settlement proceeds under a 2013 deed meant that the rights to those proceeds are vested in the trustees; prior Supreme Court orders voided previous deeds but did not preclude enforcement of rights under the later deed; evidence amply supported the trustees' entitlement and respondents were ordered to transfer shares and pay the trustees $2,395,000 plus interest.

Jurisdiction
Australia
Judgment Date
22 August 2016
Procedural Posture
Commercial / Corporations / General and Personal Insolvency / Final Orders After Substantive Hearing; Reasons for Judgment Provided
Outcome
Substantially in favour of the trustees; subject to further submissions on possible double recovery or orders.
Legal Topics
['bankruptcy Property Vesting and Recovery' 'sham Trust/agency and Concealment of Property' 'enforceability of Settlement Deeds' 'evidentiary Admissibility in Bankruptcy Cases']
['bankruptcy and Insolvency' 'agency' 'trusts' 'evidence'] ['bankruptcy Property Vesting and Recovery' 'sham Trust/agency and Concealment of Property' 'enforceability of Settlement Deeds' 'evidentiary Admissibility in Bankruptcy Cases']

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Procedural Posture

Commercial / Corporations / General and Personal Insolvency / Final Orders After Substantive Hearing; Reasons for Judgment Provided

Legal Issues

  1. 1 ["Whether trustees in bankruptcy are entitled to shares and monies derived from the bankrupt's concealed business interests" "Whether agreements entered into by the bankrupt's associate (Antoun) were as agent or trustee for the bankrupt" 'Whether claimed trusts (the JA Investments Trust) were valid' 'Whether prior Supreme Court orders precluded relief sought by trustees' 'Admissibility and use of public examination transcripts and other documentary evidence under the Bankruptcy Act']

Ratio Decidendi

The court found the bankrupt beneficially owned half the shares in companies operating the Global business; agreements entered into by Antoun as agent for the bankrupt in respect of half of settlement proceeds under a 2013 deed meant that the rights to those proceeds are vested in the trustees; prior Supreme Court orders voided previous deeds but did not preclude enforcement of rights under the later deed; evidence amply supported the trustees' entitlement and respondents were ordered to transfer shares and pay the trustees $2,395,000 plus interest.

Court Disposition

Substantially in favour of the trustees; subject to further submissions on possible double recovery or orders.

Orders

  • ['The trustees in bankruptcy of George Alex are vested with half (in number and value) of the shares held by AR & KH Pty Ltd in GHR Custodian, and shares held by GHR Custodian in Civil Pacific Services Group Pty Ltd and Global Civils Group (NSW) Pty Ltd.' 'The second to eighth respondents are to transfer the...