Tapp, A.R. v. Official Trustee in Bankruptcy [1987] FCA 317

CATCHWORODS

BANKRUPICY - settlement within 2 years of bankruptcy of bankrupt's interest in property on wife - good faith conceded - settlement pursuant to agreement requiring approval of Family Court - lack of approval deprives agreement of effect - whether "valuable consideration" - whether Family Court approval after trustee's election to avoid could destroy

effect of election.

FAMILY LAW - maintenance agreement requiring approval of Family Court - whether effect of approval retrospective - interrelationship of trustee's election to avoid and effect

of approval.

Bankruptcy Act s.120(1), 123(6) Family Law Act s.87(1), (2)

Re: Allan Ross Tapp Ex parte: Official Trustee in Bankruptcy

Qld E152 of 1984

PINCUS J. BRISBANE 17 JUNE 1987

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IN THE FEDERAL COURT OF AUSTRALIA ) GENERAL DIVISION ) QLD H1i52 of 1984

BANKRUPTCY DISTRICT OF THE SOUTHERN ) DISTRICT OF THE STATE OF QUEENSLAND )

RE: ALLAN ROSS TAPP A Bankrupt EX PARTE: OFFICIAL TRUSTEE IN BANKRUPTCY

Applicant ALLAN ROSS TAPP First Respondent

MARILYN PATRICIA TAPP

Second Respondent

PINCUS J. 17 JUNE 1987

REASONS FOR JUDGMENT

This is an application on behalf of the trustee of the estate of Allan Ross Tapp, in respect of whose estate a sequestration order was made on 5 March 1984. The applicant seeks a declaration that a maintenance agreement dated 20 January 1983 whereby the bankrupt agreed to transfer his interest in certain property is void, a declaration that the transfer in question is void, and other relief. The only active opponent, the transferee,

will be called simply "the respondent".

Less than two years before the commencement of bankruptcy there was a matrimonial dispute between the bankrupt

and his wife, in consequence of which he agreed to, and did,

transfer his half interest in the matrimonial home to her. The applicant concedes that was done in good faith but denies that