Permfox Pty Ltd, in the Matter of Chase v Official Receiver for the Bankruptcy District of New South Wales [2002] FCA 1564

Permfox Pty Ltd, in the Matter of Chase v Official Receiver for the Bankruptcy District of New South Wales [2002] FCA 1564

The relevant transfers made by Peter Joseph Chase to Permfox Pty Ltd, Helen Genevieve Lonergan, and Peter Damian Chase were void against the trustee by virtue of s 121 of the Bankruptcy Act 1966 (Cth), as they were made for the main purpose of preventing the property becoming divisible among creditors, or alternatively, at a time when Mr Chase was about to become insolvent; the official receiver's notice to Mr Lonergan was set aside, but the notice to Permfox stands.

Jurisdiction
Australia
Judgment Date
18 December 2002
Procedural Posture
Bankruptcy Proceedings / First Instance Judgment
Outcome
Declaratory orders made; further orders stood over; notices partly set aside.
Legal Topics
['voidable Transactions' 'transfers to Defeat Creditors' 'family and Company Transfers Under Bankruptcy Act' 'setting Aside Notices by Official Receiver' 'proceeds of Sale and Trust Claims']
['bankruptcy'] ['voidable Transactions' 'transfers to Defeat Creditors' 'family and Company Transfers Under Bankruptcy Act' 'setting Aside Notices by Official Receiver' 'proceeds of Sale and Trust Claims']

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Procedural Posture

Bankruptcy Proceedings / First Instance Judgment

Legal Issues

  1. 1 ['Whether transfers by Peter Joseph Chase to Permfox Pty Ltd, Helen Genevieve Lonergan, Timothy John Lonergan, and Peter Damian Chase were void against the trustee in bankruptcy under s 121 of the Bankruptcy Act 1966 (Cth)' 'Whether notices issued under s 139ZQ of the Bankruptcy Act 1966 (Cth) should be set aside under s 139ZS' 'Characterisation of the transactions as gifts, loans, or for consideration' 'Purpose for which the transfers were made, and whether made with the intent to defeat or defraud creditors, or to prevent property becoming divisible among creditors' 'Solvency or impending insolvency of Mr Chase at the time of the impugned transactions']

Ratio Decidendi

The relevant transfers made by Peter Joseph Chase to Permfox Pty Ltd, Helen Genevieve Lonergan, and Peter Damian Chase were void against the trustee by virtue of s 121 of the Bankruptcy Act 1966 (Cth), as they were made for the main purpose of preventing the property becoming divisible among creditors, or alternatively, at a time when Mr Chase was about to become insolvent; the official receiver's notice to Mr Lonergan was set aside, but the notice to Permfox stands.

Court Disposition

Declaratory orders made; further orders stood over; notices partly set aside.

Orders

  • ['Declaration that the transfer of $256,000 from Peter Joseph Chase to Helen Genevieve Lonergan in or about August 1991 is void against the trustee under s 121.' 'Declaration that the transfer of $300,000 from Peter Joseph Chase to Permfox Pty Ltd in or about August 1991 is void against the trustee under s 121.'...