Covino, Re A.M. Donnelly, Ex Parte M.C. [1986] FCA 288

Covino, Re A.M. Donnelly, Ex Parte M.C. [1986] FCA 288

The Court found, on clear evidence, that 'Walter Jay Smith' and 'Angela Smith' were fictitious identities created by Mr Covino to hide his assets from creditors and the trustee in bankruptcy. Therefore, all interests and funds registered in those names were held on trust for Mr Covino and are properly part of his bankrupt estate. The applicant trustee is entitled to those assets, orders for inquiry and account were appropriate, and related injunctive relief to preserve assets and enforce payment was warranted.

Parties
Applicant: Max Christopher Donnelly; First Respondent: John Philis; Second Respondent: Fairdinkum Tyre Service Pty Limited; Third Respondent: Angelo Michael Covino; Fourth Respondent: Melita Covino
Jurisdiction
Australia
Judgment Date
09 July 1986
Procedural Posture
Bankruptcy / Judgment and Final Orders
Outcome
Application allowed; orders declared and made as per applicant's requests, including vesting of assets, inquiries, payment directions, injunctions, and costs.
Legal Topics
Bankrupt's Property in Partnership, Use of Fictitious Identity in Commercial Arrangements, Resulting Trust, Company Shares as Asset of Bankrupt Estate, Jurisdiction Under Bankruptcy Act 1966 S.30
Bankruptcy Partnership Company Law Bankrupt's Property in Partnership Use of Fictitious Identity in Commercial Arrangements Resulting Trust Company Shares as Asset of Bankrupt Estate Jurisdiction Under Bankruptcy Act 1966 S.30

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Parties

Max Christopher Donnelly

Applicant

John Philis

First Respondent

Fairdinkum Tyre Service Pty Limited

Second Respondent

Angelo Michael Covino

Third Respondent

Melita Covino

Fourth Respondent

Procedural Posture

Bankruptcy / Judgment and Final Orders

Legal Issues

  1. 1 Whether interests held in a fictitious name are property of the bankrupt estate
  2. 2 Whether assets registered to the names 'Walter Jay Smith' and 'Angela Smith' are property of Angelo Michael Covino's bankrupt estate
  3. 3 Whether the sums derived from specific transactions are assets of the bankrupt estate

Ratio Decidendi

The Court found, on clear evidence, that 'Walter Jay Smith' and 'Angela Smith' were fictitious identities created by Mr Covino to hide his assets from creditors and the trustee in bankruptcy. Therefore, all interests and funds registered in those names were held on trust for Mr Covino and are properly part of his bankrupt estate. The applicant trustee is entitled to those assets, orders for inquiry and account were appropriate, and related injunctive relief to preserve assets and enforce payment was warranted.

Court Disposition

Application allowed; orders declared and made as per applicant's requests, including vesting of assets, inquiries, payment directions, injunctions, and costs.

Orders

  • The interests and shares in names 'Walter Jay Smith' and 'Angela Smith' are assets of the bankrupt estate of Angelo Michael Covino.
  • Sums of $43,610.32 and $9,500 paid or deposited under those identities are assets of the bankrupt estate of Angelo Michael Covino.