Stewart and Walker v White(Trustee of Springall, an Insolvent) [1907] HCA 52

Stewart and Walker v White(Trustee of Springall, an Insolvent) [1907] HCA 52

A payment made by an insolvent debtor to a creditor, even under pressure, is a fraudulent preference under s 107 of the Insolvency Act 1874 if made with the intention of preferring the creditor. The intention refers to the consequence intended by the debtor, not his motive. The existence of pressure is not enough to exempt the transaction.

Parties
Appellants: Stewart and Walker; Respondent: White (Trustee of Springall, an insolvent)
Jurisdiction
Australia
Judgment Date
08 October 1907
Procedural Posture
Appeal / On Appeal From the Supreme Court of Queensland
Outcome
Appeal dismissed
Legal Topics
Fraudulent Preference, Intention to Prefer, Pressure by Creditor, Interpretation of Insolvency Act 1874 S 107
Insolvency Fraudulent Preference Intention to Prefer Pressure by Creditor Interpretation of Insolvency Act 1874 S 107

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 12 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Stewart and Walker

Appellants

White (Trustee of Springall, an insolvent)

Respondent

Procedural Posture

Appeal / On Appeal From the Supreme Court of Queensland

Legal Issues

  1. 1 Whether payments made by an insolvent debtor to a creditor under pressure constitute a fraudulent preference under s 107 of the Insolvency Act 1874 (Qld)
  2. 2 Whether the intention or motive of the debtor is decisive under s 107
  3. 3 The effect of pressure by a creditor on the intention to prefer

Ratio Decidendi

A payment made by an insolvent debtor to a creditor, even under pressure, is a fraudulent preference under s 107 of the Insolvency Act 1874 if made with the intention of preferring the creditor. The intention refers to the consequence intended by the debtor, not his motive. The existence of pressure is not enough to exempt the transaction.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs