Royal v El Ali [2016] FCA 782

FEDERAL COURT OF AUSTRALIA

Royal v El Ali [2016] FCA 782 File numbers: NSD 1731 of 2013 NSD 771 of 2014

Judge: DAVIES J

Date of judgment: 5 July 2016

Catchwords: BANKRUPTCY – voidable transactions – dispositions of real property – whether intent to defraud creditors – relevant principles – whether properties held on trust –where transferees purported to have been appointed as trustees – relevance of subjective belief of bankrupt that properties were held on trust – whether properties had no value – relevance of subjective belief of bankrupt as to value – whether transferee acted in good faith – Conveyancing Act 1919 (NSW) s 37A BANKRUPTCY – voidable transactions – dispositions of real property – whether alienation of property – where properties held by companies controlled by bankrupt – where company executed transfer of property before settlement of purchase of the property – Conveyancing Act 1919 (NSW) s 37A BANKRUPTCY – voidable transactions – transfers of shares – whether intent to defraud creditors – relevant principles – where assets of companies claimed to be held on trust – whether shares had no value – whether transferee acted in good faith – Conveyancing Act 1919 (NSW) s 37A BANKRUPTCY – voidable transactions – transfers of shares – relevant principles – main purpose of transfers – where assets of companies claimed to be held on trust – whether shares had no value – whether defence under s 121(4) available – whether transferee had notice of main purpose of transfer – whether transferee had notice of insolvency – Bankruptcy Act 1966 (Cth) s 121