Sharrment Pty Ltd & Ors v. The Official Trustee in Bankruptcy [1988] FCA 266

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/ se CATCHWORDS "

BANKRUPTCY - Transactions involving proprietary companies and trusts controlled by bankrupt - purchase of property and subsequent sale of property at arm's length - whether proceeds of sale formed part of the divisible property of the bankrupt - whether transactions were a sham intended to put assets of the bankrupt out of the reach of creditors - whether companies associated with the bankrupt were mere shells - circumstances in

which transactions will be characterised as a "sham".

COMPANY LAW - Circumstances in which the Court will lift the

corporate veil so as to treat corporate assets as the beneficial

property of the controller of a company.

TRUSTS AND TRUSTEES - Equitable principles governing creation of

a resulting trust.

Bankruptcy Act 1966 (Cth): ss. 120, 121, 244 and 249.

SHARRMENT PTY. LIMITED LEE _ WYNYARD MARK WYNYARD LORREINE

CLAIRE WYNYARD and SEYTA PTY. LIMITED v. THE OFFICIAL TRUSTEE IN BANKRUPTCY G348 of 1967

LOCKHART, BEAUMONT and FOSTER JJ. 3 JUNE 1988 SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA NEW SOUTH WALES DISTRICT REGISTRY GENERAL DIVISION

BETWEEN:

is

JUDGES MAKING ORDER: DATE ORDER MADE: WHERE ORDER MADE:

No. G348 of 1987

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ON APPEAL FROM A SINGLE JUDGE OF T

'HE

FEDERAL COURT OF AUSTRALIA

SHARRMENT PTY. LIMITED, LEE WYNYARD,

MARK WYNYARD, LORREINE CLAIRE WYNYARD and SEYTA PTY. LTD.

Appellants THE OFFICIAL TRUSTEE IN BANKRUPTCY

Respondent LOCKHART, BEAUMONT and FOSTER JJ. 3 JUNE 1988 SYDNEY

MINUTE OF ORDER

THE COURT ORDERS THAT: 1. the 2. The

appeal be allowed;

3. the 4. The the

respondent, the Official Trustee in Bankruptcy,

orders made by the learned trial Judge be set aside;

respondent's application be dismissed;

pay

costs of the appellants of this appeal and of the

proceedings at first instance.

NOTE:

the Federal Court Rules.

Settlement and entry of orders