Robertson v Grigg [1932] HCA 29

Robertson v Grigg [1932] HCA 29

The moneys assigned and paid to Grigg were not 'book debts' and thus not void as unregistered bills of sale; the advances and associated assignments constituted valid equitable charges. Payments and charges within six months before bankruptcy were not preferences within s. 95, as they were in the ordinary course of business, for valuable consideration and good faith, and did not serve to prefer an existing creditor. Thus, the payments to Grigg were valid.

Parties
Appellant: Herbert James Robertson; Respondent: George Edward Grigg
Jurisdiction
Australia
Procedural Posture
Appeal / On Appeal From the Court of Bankruptcy (district of Western Australia)
Outcome
Appeal dismissed with costs.
Legal Topics
Preference Under Bankruptcy, Equitable Assignment, Book Debts, Bills of Sale, Good Faith in the Ordinary Course of Business
Bankruptcy Commercial Law Preference Under Bankruptcy Equitable Assignment Book Debts Bills of Sale Good Faith in the Ordinary Course of Business

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Parties

Herbert James Robertson

Appellant

George Edward Grigg

Respondent

Procedural Posture

Appeal / On Appeal From the Court of Bankruptcy (district of Western Australia)

Legal Issues

  1. 1 Whether payments made to the respondent under the road contracts were a voidable preference under s. 95 of the Bankruptcy Act 1924-1930
  2. 2 Whether assignments/orders over contract monies were void as unregistered bills of sale under the Bills of Sale Act 1899-1925 (WA) as assignments of book debts

Ratio Decidendi

The moneys assigned and paid to Grigg were not 'book debts' and thus not void as unregistered bills of sale; the advances and associated assignments constituted valid equitable charges. Payments and charges within six months before bankruptcy were not preferences within s. 95, as they were in the ordinary course of business, for valuable consideration and good faith, and did not serve to prefer an existing creditor. Thus, the payments to Grigg were valid.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs.