Masters, in the matter of the Bankruptcy Act 1966 [1977] FCA 79

74 \Q779 Mn. Tuskiie Caank

COM -ONULALTH OF ANSTRADIA '

OF auc. TA

IM TIL FEDEEAL COURT ) ) GONERAG DEVIS Corr )

JUICE MAKLNG ORDER: DATE OF ORDER

WHERE MADE:

THE COURT ORDERS THAT:

No. N.S.W. 296 of 1972

In the matter of THE BANKRUPTCY sc? And in the matter of - AN APPLICATION FOR DECLARATIONS RF -

ROWALD JAMES MASTERS

Ex parte:Jeanette Margaret Masters

Applicart

The Official Receiver Respondent

ORDER

Riley J.

25 October 1977

Sydney

The application be dismissed. Applicant to pay Official Receiver's taxed costs of the application.

CATCHWORDS

Bankruptcy - House and car bought by husband and wife - Registered in joint names - Bankruptcy of husband - Whether husband's legal interests held on trust for wife.

REASONS FOR JUDGMENT

A sequestration order was made against the estate of Ronald James Masters on 22 June 1972. This application, made on 7 July 1977 by his wife Jeanette Margaret Masters, seeks declarations that the bankrupt holds in trust for his wife

(a) his legal interest in the house and land known as 9 Marden Street, George's Hall and

(b) his legal interest in a 1971 Ford Falcon Sedan car. The Official Receiver as trustee of the bankrupt's estate has filed a notice of opposition which, as amended by leave, opposes the making of the declarations sought on the grounds that neither the bankrupt's interest in the house and land nor his interest in the car were ever held in trust by the bankrupt for the applicant.

Evidence was given only by the applicant and the bankrupt. The applicant swore two affidavits, and the bankrupt one, and both gave oral evidence. The story that emerges from

a collation of that evidence is as follows.

Mr. Masters (who was then a divorcee) and the applicant were married on 31 March 1967. At all relevant times from about 1965 until his bankruptcy Mr. Masters carried on business as a wholesaler of light fittings. He had an account (No. 380466) with the Commonwealth Trading Bank at Beverley Hills. which I shall call his business account. It had been opened with an overdraft of $4,000 guaranteed by two friends. At no relevant time has it ever been in credit, and it has on most occasions been overdrawn by more than $4,000.