Boensch v PascoeCitation:[2019] HCA 49Before:Kiefel CJ, Bell, Gageler, Keane, Nettle, Gordon, Edelman JJDate:13 Dec 2019Case Number:S216/2019Read more

Boensch v PascoeCitation:[2019] HCA 49Before:Kiefel CJ, Bell, Gageler, Keane, Nettle, Gordon, Edelman JJDate:13 Dec 2019Case Number:S216/2019Read more

Property held by a bankrupt on trust for another does not vest in the trustee in bankruptcy; a caveat may only be maintained where there is a caveatable interest or honest belief on reasonable grounds; the right of indemnity is not prejudiced unless benefits received equal or exceed expenses incurred.

Parties
Applicant: Unknown (Bankrupt); Respondent: Trustee in Bankruptcy
Jurisdiction
Australia
Judgment Date
13 December 2019
Procedural Posture
Bankruptcy Appeal / Judgment
Outcome
Appeal dismissed
Legal Topics
Vesting of Trust Property in Bankruptcy, Caveats Under Torrens System, Trustee's Right of Indemnity

Case Brief

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Parties

Unknown (Bankrupt)

Applicant

Trustee in Bankruptcy

Respondent

Procedural Posture

Bankruptcy Appeal / Judgment

  1. 1 Whether property held by bankrupt on trust vests in trustee in bankruptcy
  2. 2 Whether trustee in bankruptcy had a caveatable interest under the Real Property Act
  3. 3 Whether caveator is liable for compensation for lodging caveat without reasonable cause

Ratio Decidendi

Property held by a bankrupt on trust for another does not vest in the trustee in bankruptcy; a caveat may only be maintained where there is a caveatable interest or honest belief on reasonable grounds; the right of indemnity is not prejudiced unless benefits received equal or exceed expenses incurred.

Court Disposition

Appeal dismissed

Orders

  • No compensation payable under s 74P(1) of the Real Property Act 1900 (NSW)
  • Trustee's caveat maintained