McVeigh v Zanella [2000] FCA 1890

FEDERAL COURT OF AUSTRALIA

McVeigh v Zanella [2000] FCA 1890 BANKRUPTCY – undervalued transaction – whether market value consideration given for transfer to parents and brother of quarter interest in property – whether express, resulting or constructive trust in existence – whether compensation payable to transferees by trustee. Bankruptcy Act 1966 (Cth) ss 120, 139ZQ, 139ZR

Official Trustee in Bankruptcy v Arcadiou (1985) 8 FCR 4 referred to Re Osborn (1989) 25 FCR 547 referred to In Re Vandervell's Trusts (No 2) [1974] Ch 269 referred to Calverley v Green (1984) 155 CLR 242 referred to Nelson v Nelson (1995) 184 CLR 538 referred to

DEAN ROYSTON McVEIGH (Trustee of the Bankrupt Estate of Guiseppe Zanella) v VINCENZO ZANELLA, CRISTINA ZANELLA and FRANCESCO ZANELLA

V7430 of 2000

WEINBERG J 22 DECEMBER 2000 MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY V7430 OF 2000

BETWEEN: DEAN ROYSTON McVEIGH (Trustee of the Bankrupt Estate of Guiseppe Zanella)

APPLICANT

AND: VINCENZO ZANELLA

RESPONDENT

CRISTINA ZANELLA

SECOND RESPONDENT

FRANCESCO ZANELLA

THIRD RESPONDENT

JUDGE: WEINBERG J

DATE OF ORDER: 22 DECEMBER 2000

WHERE MADE: MELBOURNE

THE COURT DECLARES THAT:

1. The transfer on 12 May 1997 by Guiseppe Zanella ("the bankrupt") (also known as Giuseppe Zanella) of his interest as a joint tenant in the land described in Victorian Certificate of Title Volume 5619 Folio 1123608, known as 11 View Street, Reservoir, Victoria ("the property"), to Vincenzo Zanella, Cristina Zanella and Francesco Zanella is void against the applicant trustee under section 120 of the Bankruptcy Act 1966 (Cth); and 2. The applicant trustee is entitled to enforce the charge arising by virtue of the giving of a notice under s 139ZQ of the Bankruptcy Act 1966 (Cth), the notice being dated 11 March 1999, over the property.