Clout v Sing [2005] FCA 1058

FEDERAL COURT OF AUSTRALIA

Clout v Sing [2005] FCA 1058 BANKRUPTCY – voidable preferences – respondents investors in investment scheme that became insolvent – respondents demanded repayment of loan before scheme became insolvent – whether repayment of loan a preference under s 122 of the Bankruptcy Act 1966 (Cth) – whether respondents acted in good faith when they demanded repayment – whether the transaction involving repayment was in the ordinary course of business within the meaning of the section

Statutes Bankruptcy Act 1966 (Cth) ss 122(1), (2)(a), (3), (4)(c), 8(a), 8(c)

Cases Downs Distributing Co Pty Ltd v Associated Blue Star Stores Pty Ltd (In Liq) (1948) 76 CLR 463 Cons Harkness v Partnership Pacific Ltd (1997) 41 NSWLR 204 Cons Jones (trustee) v Southall & Bourke Pty Ltd [2004] FCA 539 Cons Queensland Bacon Pty Ltd v Rees (1966) 115 CLR 266 Cons Robertson v Grigg (1932) 47 CLR 257 Cons

DAVID LEWIS CLOUT AS TRUSTEE IN BANKRUPTCY OF THE ESTATE OF GEOFFREY ROBERT DEXTER v ALAN SING IN HIS OWN CAPACITY AND AS TRUSTEE OF THE SING FAMILY SUPER FUND AND JILLIAN SING IN HER OWN CAPACITY AND AS TRUSTEE FOR THE SING FAMILY SUPER FUND KIEFEL J BRISBANE 3 AUGUST 2005

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY QUD 59 OF 2004

BETWEEN: DAVID LEWIS CLOUT AS TRUSTEE IN BANKRUPTCY OF THE ESTATE OF GEOFFREY ROBERT DEXTER

APPLICANT

AND: ALAN SING IN HIS OWN CAPACITY AND AS TRUSTEE OF THE SING FAMILY SUPER FUND

FIRST RESPONDENT

JILLIAN SING IN HER OWN CAPACITY AND AS TRUSTEE FOR THE SING FAMILY SUPER FUND

SECOND RESPONDENT

JUDGE: KIEFEL J

DATE OF ORDER: 3 AUGUST 2005

WHERE MADE: BRISBANE

THE COURT ORDERS THAT: 1. The application be dismissed. 2. The applicant pay the respondents' costs of the application. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.