Re Louwen, Henry Willem Ex Parte Walker, John Edward [1983] FCA 73

Re Louwen, Henry Willem Ex Parte Walker, John Edward [1983] FCA 73

The disposition of the property by the bankrupt to Johanna Levina Louwen was not in good faith, as she knew her husband was unable to pay debts and that the disposition removed assets from creditors, and is therefore void against the trustee under s.120 of the Bankruptcy Act 1966.

Source-derived case information.

Parties
Bankrupt: Henry Willem Louwen; Trustee of the Bankrupt Estate of Henry Willem Louwen (applicant): John Edward Walker; Respondent: Johanna Levina Louwen
Jurisdiction
Australia
Judgment Date
28 April 1983
Procedural Posture
Bankruptcy Application / Application by Trustee to Set Aside Property Settlement
Outcome
Application granted; orders made in favour of the trustee.
Legal Topics
Setting Aside Settlement, Good Faith in Property Disposition
Bankruptcy Setting Aside Settlement Good Faith in Property Disposition

Source-derived case record

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Parties

Henry Willem Louwen

Bankrupt

John Edward Walker

Trustee of the Bankrupt Estate of Henry Willem Louwen (applicant)

Johanna Levina Louwen

Respondent

Procedural Posture

Bankruptcy Application / Application by Trustee to Set Aside Property Settlement

Legal Issues

  1. 1 Whether the settlement of the property is void against the trustee under s.120 of the Bankruptcy Act 1966
  2. 2 Whether the settlement was made in good faith
  3. 3 Whether the transaction was for valuable consideration

Ratio Decidendi

The disposition of the property by the bankrupt to Johanna Levina Louwen was not in good faith, as she knew her husband was unable to pay debts and that the disposition removed assets from creditors, and is therefore void against the trustee under s.120 of the Bankruptcy Act 1966.

Court Disposition

Application granted; orders made in favour of the trustee.

Orders

  • Declare the disposition by the bankrupt to Johanna Levina Louwen of the land at 13 Pertaka Place, Cromer is void against the trustee in bankruptcy.
  • The respondent execute any transfers and perform all acts necessary for transfer of the subject property to the applicant.