SCE Building Constructions Pty Ltd (in liq) v Saad & Ors [2003] NSWSC 796

SCE Building Constructions Pty Ltd (in liq) v Saad & Ors [2003] NSWSC 796

The strata units were held on a resulting trust for SCE Building Constructions Pty Ltd (in liquidation), as almost the entire purchase price was provided by the company. The directors' only contribution was recognised by a loan account, and the company owed no obligation of support to the directors, so no presumption of advancement arose. Evidence did not rebut the resulting trust presumption.

Jurisdiction
Australia
Judgment Date
08 September 2003
Procedural Posture
Cross Claim / Judgment
Outcome
Declaration of resulting trust in favour of cross claimant; orders made for transfer of relevant strata units; orders as to proceeds of sale reserved for further submissions.
Legal Topics
['resulting Trusts' 'presumption of Advancement' 'company Liquidation' 'beneficial Ownership of Land']
['equity'] ['resulting Trusts' 'presumption of Advancement' 'company Liquidation' 'beneficial Ownership of Land']

Case Brief

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Procedural Posture

Cross Claim / Judgment

Legal Issues

  1. 1 ['Whether strata units purchased in the names of directors are held on resulting trust for the company in liquidation' 'Whether purchase price was paid by the company' 'Whether presumption of resulting trust or advancement arises and is rebutted']

Ratio Decidendi

The strata units were held on a resulting trust for SCE Building Constructions Pty Ltd (in liquidation), as almost the entire purchase price was provided by the company. The directors' only contribution was recognised by a loan account, and the company owed no obligation of support to the directors, so no presumption of advancement arose. Evidence did not rebut the resulting trust presumption.

Court Disposition

Declaration of resulting trust in favour of cross claimant; orders made for transfer of relevant strata units; orders as to proceeds of sale reserved for further submissions.

Orders

  • ['Declaration that cross claimant has beneficial ownership in unit 11 and that 2nd cross defendant holds it on trust for cross claimant' 'Order for transfer of unit 11 to cross claimant' 'Other orders and issues regarding proceeds of sale and profit sharing and costs reserved for further hearing']