Kite (Trustee), in the matter of Murray (a Bankrupt) v Murray [2023] FCA 198

Kite (Trustee), in the matter of Murray (a Bankrupt) v Murray [2023] FCA 198

The trustee succeeds on his s 139DA claim to an 11% interest in 25B Serpentine Crescent, North Balgowlah, based on the amount of the cash contribution from the bankrupt used in its purchase; the evidence established the respondent acquired the property as a direct or indirect result of financial contributions made by the bankrupt, the appropriate vested share matching the cash contribution proportion; the resulting trust claim failed because the evidence showed the intention of the parties was for the respondent to be sole beneficial owner. The voidable transaction claims under ss 120 and 121 also succeeded in respect of the relevant transfers, as they were made when the bankrupt was...

Jurisdiction
Australia
Judgment Date
10 March 2023
Procedural Posture
Bankruptcy Application / Final Judgment
Outcome
Application allowed in part
Legal Topics
['s 139 DA Bankruptcy Act' 'resulting Trust' 'presumption of Advancement' 'voidable Transactions' 'undervalued Transactions' 'transfers to Defeat Creditors']
['bankruptcy' 'insolvency' 'property Law'] ['s 139 DA Bankruptcy Act' 'resulting Trust' 'presumption of Advancement' 'voidable Transactions' 'undervalued Transactions' 'transfers to Defeat Creditors']

Case Brief

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Procedural Posture

Bankruptcy Application / Final Judgment

Legal Issues

  1. 1 ['Whether the respondent holds 25B Serpentine Crescent, North Balgowlah, on trust for the bankrupt estate or in proportions reflective of contributions' 'Whether s 139DA Bankruptcy Act applies to vest a beneficial interest' 'Whether a resulting trust exists' 'Whether transfers were voidable as undervalued transactions or to defeat creditors']

Ratio Decidendi

The trustee succeeds on his s 139DA claim to an 11% interest in 25B Serpentine Crescent, North Balgowlah, based on the amount of the cash contribution from the bankrupt used in its purchase; the evidence established the respondent acquired the property as a direct or indirect result of financial contributions made by the bankrupt, the appropriate vested share matching the cash contribution proportion; the resulting trust claim failed because the evidence showed the intention of the parties was for the respondent to be sole beneficial owner. The voidable transaction claims under ss 120 and 121 also succeeded in respect of the relevant transfers, as they were made when the bankrupt was...

Court Disposition

Application allowed in part

Orders

  • ['By 6 April 2023, parties to confer and provide draft orders to the Associate to Justice Raper giving effect to reasons, including as to costs.' 'If parties cannot agree, by 6 April 2023 each to provide proposed orders and submissions (max. 5 pages), proceeding to be listed for case management to resolve form of...