Robert Reid Pty Ltd v Cassidy [1966] HCA 7

Robert Reid Pty Ltd v Cassidy [1966] HCA 7

The majority held that a payment of money by a debtor to a creditor, even if void as a preference under s. 95, does not constitute a 'conveyance or transfer of property' under s. 52(c), and thus does not amount to an act of bankruptcy. They relied on the legislative distinction between the terms and the distinct wording of s. 52(c), which omits any express reference to 'payment.'

Jurisdiction
Australia
Procedural Posture
Appeal / Judgment
Outcome
appeal dismissed
Legal Topics
['acts of Bankruptcy' 'preferential Payment' 'construction of Bankruptcy Act 1924 1960 (cth) S. 52(c)' 'definition of Conveyance or Transfer of Property']
['bankruptcy'] ['acts of Bankruptcy' 'preferential Payment' 'construction of Bankruptcy Act 1924 1960 (cth) S. 52(c)' 'definition of Conveyance or Transfer of Property']

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Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 ["Whether a payment which would be void as a preference if the debtor became bankrupt constitutes an 'act of bankruptcy' as a 'conveyance or transfer' of property under s. 52(c) of the Bankruptcy Act 1924-1960 (Cth)."]

Ratio Decidendi

The majority held that a payment of money by a debtor to a creditor, even if void as a preference under s. 95, does not constitute a 'conveyance or transfer of property' under s. 52(c), and thus does not amount to an act of bankruptcy. They relied on the legislative distinction between the terms and the distinct wording of s. 52(c), which omits any express reference to 'payment.'

Court Disposition

appeal dismissed

Orders

  • ['Appeal dismissed with costs.']