Madden v Official Trustee in Bankruptcy [2014] FCA 446

FEDERAL COURT OF AUSTRALIA

Madden v Official Trustee in Bankruptcy [2014] FCA 446 Citation: Madden v Official Trustee in Bankruptcy [2014] FCA 446

Parties: ALEXANDER WILLIAM MADDEN v OFFICIAL TRUSTEE IN BANKRUPTCY and MAXWELL WILLIAM PRENTICE

File number: NSD 866 of 2013

Judge: FARRELL J

Date of judgment: 8 May 2014

Catchwords: BANKRUPTCY – after-acquired property – construction of s 127 of the Bankruptcy Act 1966 (NSW) – interest in property held on resulting trust for bankrupt – trustee became aware of interest after expiration of 20 year period – whether trustee making a "claim" – distinction between legal and equitable interests – whether trustee needed to take steps to perfect title – whether property had re-vested pursuant to s 127 – effect of failure to disclose interest to trustee – whether bankrupt owed fiduciary duties to trustee – whether an estoppel arose in favour of trustee

Legislation: Bankruptcy Act 1924 (Cth) Bankruptcy Act 1966 (Cth) Conveyancing Act 1919 (NSW) Real Property Act 1900 (NSW)

Cases cited: Breen v Williams (1996) 186 CLR 71 Burke v Stapleton (1970) 120 CLR 664 Coshott v Coshott [2013] FCA 907 Falloon v Madden [2012] NSWSC 652 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 Pilmer v Duke Group Limited (in liq) (2001) 207 CLR 165 R v McNeil (1922) 31 CLR 76 Re Auzhair Supplies Pty Limited (in Liq) [2013] NSWSC 1 Re Bulluss; Ex-parte Official Assignee (1957) 18 ABC 83 Re Dakin (1948) 14 ABC 186 Re Lehrain; Official Receiver (Trustee) v Frankston Timber Pty Ltd (1975) 6 ALR 301 Re Orange; Ex-parte Jaques (1958) 18 ABC 157 Re Quirk (1968) ALR 53 Re Sabine (1958) 18 ABC 188