Gow and Chambers v White [1908] HCA 17

Gow and Chambers v White [1908] HCA 17

The payments in question were made in pursuance of a valid agreement, and received in good faith by the appellants, who had made reasonable inquiries and had no reason to suspect the debtor's insolvency or preferential intent. Therefore, the payments were not fraudulent preferences within sec. 107 of the Insolvency Act 1874 (Qld). The transaction involving £25 worth of butter was not a delivery in satisfaction of a past debt for the purposes of sec. 108.

Parties
Appellants: Robert Mylne Gow and Ebenezer Charles Chambers (trading as R. M. Gow & Co.); Respondent: Thomas Edward White
Jurisdiction
Australia
Judgment Date
02 May 1908
Procedural Posture
Appeal / Final Judgment From High Court of Australia
Outcome
appeal allowed
Legal Topics
Fraudulent Preference, Good Faith, Payments, Distribution of Insolvent Estate
Insolvency Commercial Law Fraudulent Preference Good Faith Payments Distribution of Insolvent Estate

Case Brief

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Parties

Robert Mylne Gow and Ebenezer Charles Chambers (trading as R. M. Gow & Co.)

Appellants

Thomas Edward White

Respondent

Procedural Posture

Appeal / Final Judgment From High Court of Australia

Legal Issues

  1. 1 Were payments made by the debtor to the appellants within six months prior to insolvency fraudulent preferences under sec. 107 of the Insolvency Act 1874 (Qld)?
  2. 2 Did the appellants receive the payments in good faith, without knowledge or reason to suspect the payments were preferential?
  3. 3 Was the £25 worth of butter delivered in satisfaction of a past debt within the meaning of sec. 108 of the Insolvency Act 1874 (Qld)?

Ratio Decidendi

The payments in question were made in pursuance of a valid agreement, and received in good faith by the appellants, who had made reasonable inquiries and had no reason to suspect the debtor's insolvency or preferential intent. Therefore, the payments were not fraudulent preferences within sec. 107 of the Insolvency Act 1874 (Qld). The transaction involving £25 worth of butter was not a delivery in satisfaction of a past debt for the purposes of sec. 108.

Court Disposition

appeal allowed

Orders

  • Order appealed from discharged
  • Order of the Chief Justice restored