Lane v Pappin [2000] FCA 1178

FEDERAL COURT OF AUSTRALIA

Lane v Pappin [2000] FCA 1178

BANKRUPTCY – where, within five years before commencement of bankruptcy, bankrupt transferred property for consideration of "natural love and affection" – where trustees in bankruptcy seek declaration that transfer void as against them, and an order that the transferee pay to them the value of the interest received pursuant to the transfer – whether Court should make the declaration and order sought. Bankruptcy Act 1966, s 120 MORGAN GERARD JAMES LANE and IVOR WORRELL (Trustees in Bankruptcy) v EILEEN ANNE PAPPIN and PETER DOUGLAS PAPPIN Q 7134 OF 2000 SPENDER J 18 AUGUST 2000 BRISBANE

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY Q 7134 OF 2000

BETWEEN: MORGAN GERARD JAMES LANE and

IVOR WORRELL

APPLICANTS

AND: EILEEN ANNE PAPPIN

FIRST RESPONDENT

PETER DOUGLAS PAPPIN

SECOND RESPONDENT

JUDGE: SPENDER J

DATE OF ORDER: 18 AUGUST 2000

WHERE MADE: BRISBANE

THE COURT DECLARES THAT: (1) As against Morgan Gerard James Lane and Ivor Worrell, the trustees in the bankruptcy of Eileen Anne Pappin, the transfer on 31 October 1996 (No. U485074W) of the interest of Eileen Anne Pappin in real property situated at 59 Hickey Street, Whittington in the State of Victoria, more particularly described as Lot 4 on Plan of Subdivision No. 113014, Certificate of Title Volume 9236, Folio 641, to Peter Douglas Pappin for natural love and affection, is void. THE COURT ORDERS THAT: (2) Peter Douglas Pappin pay to Morgan Gerard James Lane and Ivor Worrell, the trustees in the bankruptcy of Eileen Anne Pappin, the sum of $47,500. (3) The respondents, Eileen Anne Pappin and Peter Douglas Pappin, pay to the applicants, the trustees in the bankruptcy of Eileen Anne Pappin, the costs of and incidental to this application, to be taxed if not agreed. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.