Lumsden v Snelson [2001] FCA 83

FEDERAL COURT OF AUSTRALIA

Lumsden v Snelson [2001] FCA 83 BANKRUPTCY – application by trustee of bankrupt estate – whether transfer of shares and interest in matrimonial home by husband to wife void under s 120(1) or s 121(1) of the Bankruptcy Act 1966 (Cth) – whether investments and caravan acquired with proceeds of sale of property held on trust for trustee – transfer of property effective until avoided in proceedings brought by trustee under the Bankruptcy Act 1966 (Cth).

Bankruptcy Act 1966 (Cth): ss 120, 121

Official Trustee in Bankruptcy v Alvaro (1996) 66 FCR 372 applied LEON ALFRED LUMSDEN (in his capacity as trustee of the bankrupt estate of MERVYN DOUGLAS SNELSON) v MERVYN DOUGLAS SNELSON & JOAN MARION SNELSON V 7375 of 2000 GOLDBERG J 14 FEBRUARY 2001 MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY V 7375 of 2000

BETWEEN: LEON ALFRED LUMSDEN (in his capacity as trustee of the bankrupt estate of MERVYN DOUGLAS SNELSON)

Applicant

AND: MERVYN DOUGLAS SNELSON and JOAN MARION SNELSON

Respondent

JUDGE: GOLDBERG J

DATE OF ORDER: 14 FEBRUARY 2001

WHERE MADE: MELBOURNE

THE COURT DECLARES THAT: 1. The transfer dated 11 September 1997 whereby the first respondent transferred to the second respondent the whole of his estate, title and interest in the property situate at 5 Marissa Crescent, Greensborough, Victoria, being the whole of the land more particularly described in Certificate of Title Volume 9648 Folio 428 in the Register Book ("the property") is void as against the applicant. 2. The transfer of 600 shares (or instalment receipts) in Telstra Limited ("the shares") by the first respondent to the second respondent on or about 5 March 1998 is void as against the applicant. 3. All investments made by the second respondent in or through: (a) Prosper International Ltd; (b) Stock Generation; (c) Advance; and/or (d) Quantum Gold ("the investments") are held by her on trust for herself and for the first respondent in equal shares. 4. The caravan purchased by the second respondent in July 1999 and paid for in December 1999 ("the caravan") is held by her on trust for herself and for the first respondent in equal shares.