Morlea Professional Services Pty Ltd v Richard Walter Pty Ltd (in Liq) [1999] FCA 1820

FEDERAL COURT OF AUSTRALIA

Morlea Professional Services Pty Ltd v Richard Walter Pty Ltd (In Liq) [1999] FCA 1820

TRUSTS - constructive trust - claim by trustee against a knowing recipient of trust property to recover trust property - trustee committed the breach of trust - trust terminated and trust property distributed - prior reparation of breach of trust by trustee - expiry of limitation period - beneficiaries not parties to proceeding - whether action maintainable.

CORPORATIONS - corporations with common controlling directors - corporations in partnership - partnership property wrongfully paid away by one corporation - imputation of knowledge of that corporation to the other - transaction in question not of benefit to either corporation.

LIMITATION OF ACTIONS - Limitation Act 1969 (NSW) - whether action by trustee to recover trust property statute barred - whether beneficiary's action against third party recipient of trust property likewise barred.

Income Tax Assessment Act 1936 (Cth), s 218

Australia/Netherlands Double Taxation Agreement,Article 7

Income Tax (International Agreements) Act 1953 (Cth)

Limitation Act 1969 (NSW), s 47, s 48

Judiciary Act 1903 (Cth), s 79

Federal Court Rules, O 6 r 13, O 6 r 14

Macquarie Health Corp Ltd v Commissioner of Taxation [1999] FCA 1819 referred

Richard Walter Pty Limited v Commissioner of Taxation (1996) 67 FCR 243 referred

Barnes v Addy (1874) LR 9 Ch App 244 discussed

Richard Walter Pty Ltd v Federal Commissioner of Taxation (1995) 95 ATC 4,440 referred

Australian Securities Commission v AS Nominees Ltd (1995) 133 ALR 1 referred

Beach Petroleum NL v Johnson (1993) 43 FCR 1 distinguished

Walker v Wimborne (1976) 137 CLR 1 referred

Duke Group Ltd v Pilmer (1998) 27 ACSR 1 referred

Re Brogden; Billing v Brogden (1887) 38 Ch D 546 referred

Endresz v Whitehouse (1997) 24 ACSR 208 referred