Re Henderson, K. v. Ex parte Lyford, M.H. & Anor [1987] FCA 537

* NUDGMENT No. 221.731

Catchwords Bankruptcy - promissory notes issued by bankrupt dishonoured

before bankruptcy - notes purchased before bankruptcy by wife of bankrupt for less than their face value - evidence that purchase pursuant to an arrangement that wife should have a mortgage over

bankrupt's half interest in matrimonial home to secure the amount she actually paid to purchase the notes - mortgage later executed to secure the face value of the notes - whether wife an

encumbrancer in good faith within the meaning of s.120(1) of the

Bankruptcy Act 1966.

Bankruptcy Act 1966 ss.120(1), 121(1).

RE: KENNETH HENDERSON EX PARTE: MAURICE HODGSON LYFORD

AND: DENISE GERTRUDE HENDERSON

No.143 of 1987

Sweeney J.

Melbourne

7 October, 1987

Roo NER

~9OCT 1987

FEDERAL COURT OF AUSTRALJA

PRINCIPAL REGIST

IN THE FED

GENERAL DIVISION

BANKRUPTCY

OF WESTERN

RE

ERAL COURT OF AUSTRALIA

No. 143 of 1987

DISTRICT OF THE STATE AUSTRALIA : KENNETH HENDERSON Bankrupt

EX PARTE: MAURICE HODGSON LYFORD as trustee of

the estate of Kenneth Henderson Applicant AND : DENISE GERTRUDE HENDERSON Respondent THE COURT: Sweeney J. PLACE : Melbourne DATE : 7 October, 1987

MINUTES OF ORDER THE COURT:

1. Declares that the memorandum of mortgage dated 18

February 1982 and registered at the Office of Titles, Perth, on 25 March 1982 and numbered C328825, being a settlement which came into operation within 2 years before the commencement of Kenneth Henderson's

bankruptcy, and not being a settlement made in favour of

Note: an encumbrancer in good faith, is void as against the applicant so far as is necessary for the payment of the

the debts of(bankrupt, and the costs of his bankruptcy.

Liberty is reserved to the parties to apply to any judge of the court for the making of appropriate orders to give effect to the court's declaration, in the light of the course of administration of the bankrupt's estate