Evans, R.M. & Ors v Albany Nominees Pty Ltd [1987] FCA 721

A reasonable person in the creditor's position ought to have suspected that the debtors were unable to pay their debts as they fell due, and that the effect of the payments was to give a preference; thus, good faith protection is precluded by s.122(4)(c), making the payments void against the trustees.

Parties: Applicant: Rodney Michael Evans; Applicant: Maurice Hodgson Lyford; Bankrupt: Colin H. Carr; Bankrupt: Eileen Carr; Respondent: Albany Nominees Pty. Limited
Jurisdiction: Australia
Judgment Date: 17 December 1987
Procedural Posture: Bankruptcy Application / Judgment After Hearing
Outcome: Application granted
Legal Topics: Preference Payments, Good Faith, Ordinary Course of Business, Interest on Payments

Bankruptcy Insolvency Preference Payments Good Faith Ordinary Course of Business Interest on Payments

Case Brief

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Full judgment text Downloadable case file Legal principles 5 Authorities cited 8 Party arguments 2 Amounts and remedies 2

Parties

Rodney Michael Evans

Applicant

Maurice Hodgson Lyford

Applicant

Colin H. Carr

Bankrupt

Eileen Carr

Bankrupt

Albany Nominees Pty. Limited

Respondent

Procedural Posture

Bankruptcy Application / Judgment After Hearing

Legal Issues

1 Whether payments made by bankrupts to creditor constituted a preference under s.122 of the Bankruptcy Act 1966
2 Whether payments were made in good faith and in the ordinary course of business
3 Whether the creditor ought to have suspected insolvency and the effect of preference

Ratio Decidendi

Court Disposition

Application granted

Orders

Declaration that payments totalling $31,745.17 from 13 May 1982 until 15 September 1982 constituted a preference and are void against the trustees
Order that Albany Nominees Pty. Limited pay $31,745.17 to the trustees