Combis (Trustee) v Spottiswood (No 2) [2013] FCA 240

Combis (Trustee) v Spottiswood (No 2) [2013] FCA 240

The transfers in the total amount of $3,693,412.85 effected by the Deeds of Gift constituted payments of money (or transfers of choses in action) for which the respondent gave no valuable consideration and were made within the relevant period prior to bankruptcy. These are void as against the trustees pursuant to s 120 (and alternatively s 121) of the Bankruptcy Act 1966 (Cth), and the respondent is liable to account for the total sum, with interest.

Parties
Applicants: Nick Combis and Peter Dinoris as Trustees in Bankruptcy of the estate of Graham Clinton Spottiswood (a bankrupt); Respondent: Suzanne Lesley Spottiswood
Jurisdiction
Australia
Judgment Date
19 March 2013
Procedural Posture
Bankruptcy Application (federal Court) / Judgment After Contested Hearing
Outcome
Relief granted to applicants. Transfers declared void, respondent ordered to pay principal sum, interest, and costs.
Legal Topics
Void Transfers, Undervalued Transactions, Bankruptcy Act 1966 (cth), Declaratory Relief, Gift Discharged by Book Entry, Trusts
Bankruptcy Insolvency Void Transfers Undervalued Transactions Bankruptcy Act 1966 (cth) Declaratory Relief Gift Discharged by Book Entry Trusts

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Parties

Nick Combis and Peter Dinoris as Trustees in Bankruptcy of the estate of Graham Clinton Spottiswood (a bankrupt)

Applicants

Suzanne Lesley Spottiswood

Respondent

Procedural Posture

Bankruptcy Application (federal Court) / Judgment After Contested Hearing

Legal Issues

  1. 1 Whether transfers to the respondent under Deeds of Gift were void as against the trustees under s 120 or s 121 of the Bankruptcy Act 1966 (Cth)
  2. 2 Whether respondent is liable under s 139ZQ of the Bankruptcy Act 1966 (Cth)
  3. 3 Whether book entry can constitute payment of money in satisfaction of gift

Ratio Decidendi

The transfers in the total amount of $3,693,412.85 effected by the Deeds of Gift constituted payments of money (or transfers of choses in action) for which the respondent gave no valuable consideration and were made within the relevant period prior to bankruptcy. These are void as against the trustees pursuant to s 120 (and alternatively s 121) of the Bankruptcy Act 1966 (Cth), and the respondent is liable to account for the total sum, with interest.

Court Disposition

Relief granted to applicants. Transfers declared void, respondent ordered to pay principal sum, interest, and costs.

Orders

  • The transfers of property (payments to respondent totalling $3,693,412.85) declared void as against the applicants.
  • Respondent to pay applicants $3,693,412.85.